SEZ units get duty relief for domestic sales
image for illustrative purpose
New Delhi: The government has announced limited duty concessions for manufacturing units in Special Economic Zones (SEZs), allowing them to sell goods in the domestic market at reduced rates for one year to offset weak global demand.
The measure, effective from April 1, 2026, to March 31, 2027, lowers Basic Customs Duty (BCD) and, in some cases, the Agriculture Infrastructure and Development Cess (AIDC) on goods produced in SEZs and sold in the Domestic Tariff Area (DTA).
The relief covers a wide range of sectors, including chemicals, fertilisers, textiles, footwear and machinery. However, only units that began production on or before March 31, 2025, will be eligible, subject to compliance with specified conditions and a minimum value addition of 20 per cent.
Announced as part of the Union Budget 2026-27, the move seeks to address underutilisation of manufacturing capacities in SEZs caused by global trade disruptions. These zones, typically export-focused and treated as foreign territories for customs purposes, have struggled to offload excess production due to subdued external demand.
