India has announced temporary customs duty relief for Special Economic Zone (SEZ) goods sold domestically from April 1, 2026 to March 31, 2027, to support exporters amid global uncertainties.

BulletsIn:

• Government allows SEZ units to sell goods in domestic market at concessional customs duty rates ranging between 5% and 12.5% for one year
• Relief applicable from April 1, 2026 to March 31, 2027, aimed at supporting manufacturing units facing export slowdown and global trade disruptions
• Only units that started production on or before March 31, 2025 are eligible, ensuring benefits limited to established manufacturing units
• Move intended to help SEZ firms utilise idle capacity and improve competitiveness in domestic market amid uncertain export demand
• Covers multiple sectors including chemicals, textiles and engineering goods, widening impact across industrial segments
• Policy follows Budget 2026 announcement of one-time concessional duty measure to ease pressure on export-oriented SEZ units
• Conditions such as value addition norms and limits on domestic sales ensure safeguards for domestic industry and prevent misuse