Customs analytical · TaxIntelHub

SEZ Duty Reduction: Domestic Sales to Consumers May Benefit From Lower Prices

The government is allowing SEZ units to sell domestically at reduced duties to combat export slowdowns. This move aims to support employment and reduce reliance on imports, though benefits may be limited to specific sectors.

💡 Key Fact

Effective April 1, 2026, SEZ units can sell up to 30% of their turnover domestically at a reduced duty of 6.5%–15% until March 31, 2027, per notification.

Background

The government introduced a one-time customs duty concession under Section 25(1) of the Customs Act, 1962, to help SEZ manufacturers navigate export slowdowns and utilize idle capacity amid global uncertainties.

Source: NDTV Profit

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