Govt notifies Customs duty relief on SEZ goods sold in domestic market

The Finance Ministry has formally notified Customs duty relief for goods manufactured in special economic zones (SEZs) and sold in the domestic tariff area (DTA). The lowered duty rates will range between 5% and 12.5% across industries. Levies on some industrial chemicals and fertilisers have been cut to 6.5% from 7.5%. The relief is effective from April 1, 2026 to March 31, 2027. It is available only to businesses that commenced production on or before March 31, 2025. The measure was first announced in the Union Budget FY27 to cushion exporters battered by steep US tariffs and global trade uncertainty. Domestic sales will be limited to a prescribed proportion of each unit’s export turnover, ensuring a level playing field for DTA manufacturers. Over a third of India’s outbound shipments from SEZ units are exported to the United States. Capacity utilisation in SEZs has been under pressure following the imposition of additional tariffs, said a report.

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