CBIC introduces one-time relief measure for eligible units in SEZs

• CA Sachin Chawla
• 02 Apr 2026
• 31 Views

In line with Union Budget announcement for 2026-27 to address challenges dealt with by manufacturing units in Special Economic Zones (SEZs) due to ongoing global trade disruptions, the Central Board of Indirect Taxes and Customs (CBIC) has made a decision to introduce a special one time relief measure. This measure by the Board is designed to facilitate sales by eligible manufacturing units in SEZs to the Domestic Tariff Area (DTA) at reduced duty rates. The Union Budget announcement is being implemented via exemption notification issued u/s 25 of the Customs Act, 1962.

It applies to manufactured goods cleared by SEZ units to the DTA, and will be in effect from April 1, 2026, to March 31, 2027 (notification No. 11/2026-Customs dated March 31, 2026). In determining the concessional rates for eligible SEZ units under this relief measure, careful consideration has been given to make sure that there is a level playing field for units operating within the DTA. 

Prescribed Concessional Rates

The prescribed concessional rates of customs duty for notified goods under this relief measure are detailed below:-

Eligible SEZ Units

Units in SEZ that are seeking benefits under this relief window must have started production of goods on or before 31 March 2025. The goods produced by these units, for which benefits are being claimed, must demonstrate a minimum value addition of 20% over the inputs. 

It is important to note that the focus on exports by SEZ units shall remain. Additionally, sales to the DTA at reduced rates by eligible SEZ units should not exceed 30% of the highest annual FOB value of exports recorded in any of the three financial years immediately preceding the current year.

Relief Window’s Implementation

The relief window’s implementation will be done via the automated system of CBIC. The assessment of bills of entry for DTA clearance under relief window will be done via faceless assessment mechanism. 

Certain sectors are excluded from the relief window on account of certain sensitivities and to safeguard the domestic sector.

Source:- Press Information Bureau (PIB)