One-Time Relief Measure for SEZ Units
The government has introduced a one-time relief measure facilitating Special Economic Zones (SEZ) units to sell their products in domestic markets with a reduced Customs duty for a period of one year.
Key Details and Objectives
- The relief measure aims to assist exporters in navigating geopolitical uncertainties and help SEZ units utilize idle capacity due to the unpredictable export market.
- The measure will be in effect from April 1, 2026 to March 31, 2027.
- It encompasses several product categories, including:
- Plastics
- Textiles
- Chemicals
Applicable Conditions
- The reduced duty rates will range between 5% and 12.5%.
- The lower duty will only be applicable to units that began production on or before March 31, 2025.
- Units must prove to the designated officer that the goods meet the conditions specified in the notification's annexure.
- Free Trade Warehousing Zones are excluded from this benefit.
Context and Limitations
Finance Minister Nirmala Sitharaman, in her February Budget speech, mentioned this one-time measure, which allows eligible SEZ manufacturing units to sell domestically at a 'concessional duty'.
- The volume of domestic sales will be limited to a certain proportion of their exports to maintain safeguards and prevent disadvantages to units in the domestic tariff area.
