The move comes at a time when exporters and manufacturers are navigating heightened geopolitical uncertainties, supply chain disruptions, and rising input and logistics costs. By lowering the effective duty burden, the policy aims to improve the viability of diverting surplus or unshipped export inventory into the domestic market.
India has introduced concessional customs duties of 6.5 per cent to 12.5 per cent on SEZ goods sold in the domestic market, easing cost pressures and improving competitiveness.
Effective from April 2026 to March 2027, the move supports manufacturers facing weak exports, while allowing surplus inventory diversion with partial AIDC relief and compliance safeguards.
Under the notification, a wide range of products, including chemicals, plastics, textiles, and intermediate goods will attract reduced duty rates, typically in the range of 6.5 per cent to 12.5 per cent, instead of the full applicable customs duty. The framework also provides partial the relief from Agriculture Infrastructure and Development Cess (AIDC) for specified categories.
SEZ units import inputs duty-free for export production. If they want to sell those goods in the domestic market, their production is treated like imports and is required to pay full customs duty, which makes them uncompetitive. Therefore, the concessional customs duty will make their sales in domestic market more competitive.
The benefit is available to eligible SEZ units that meet prescribed conditions, including prior operational timelines and compliance requirements. Units availing of the relief will remain subject to audit under SEZ regulations to ensure adherence to the scheme’s provisions.
Effective April 1, 2026, the measure will remain in force until March 31, 2027, providing a temporary cushion to industry players seeking flexibility amid ongoing global trade and demand volatility.
Fibre2Fashion News Desk (KUL)
