SEZ Units Selling in India: The One-Time Concessional Duty Relief for 2026-27
The Budget 2026-27 gave eligible SEZ manufacturers a one-time window to sell in India at concessional duty. Here is what CBIC announced.
- Effective 1 April 2026 to 31 March 2027, under Notification No. 11/2026-Customs dated 31 March 2026.
- For SEZ units that began production on or before 31 March 2025.
- Conditions: at least 20 per cent value addition, and DTA sales within 30 per cent of the highest annual export FOB in the last three years.
What is this relief?
CBIC described it as a special one-time relief measure to facilitate sales by eligible manufacturing units in Special Economic Zones to the Domestic Tariff Area (DTA), at concessional customs duty rates. It was announced in Union Budget 2026-27 to address concerns arising from global trade disruptions.
When does it apply?
From 1 April 2026 to 31 March 2027. The legal basis is exemption Notification No. 11/2026-Customs dated 31 March 2026, issued under Section 25 of the Customs Act, 1962.
Who is eligible?
SEZ units that commenced production of goods on or before 31 March 2025. Certain sectors are excluded. The release does not name them, so read the notification for the list.
What conditions apply?
- The goods must show a value addition of at least 20 per cent over the inputs.
- DTA sales at the concessional rates must not exceed 30 per cent of the highest annual FOB value of exports in any of the three immediately preceding financial years.
- The relief covers manufactured goods that are notified. The notification has the list.
What are the concessional rates?
| Present duty | Concessional rate |
|---|---|
| 7.5% | 6.5% |
| 10% | 9% |
| 12.5% and 15% | 10% |
| 20% | 12.5% |
| Between 20% and 30% | 15% |
| Between 30% and 40% | 20% |
The release says the rates apply to the present customs duty, including basic customs duty, AIDC and the Health Cess. It gives only this mapping.
How are the bills of entry assessed?
The release says the relief is implemented through CBIC's automated system, and that assessment of bills of entry for DTA clearances under this window is done under the faceless assessment mechanism.
Is there an application?
The release does not describe one. It mentions detailed FAQs that we have not read. Check cbic.gov.in for the notification and the FAQs before you plan sales.
What should an SEZ unit do now?
- Check the start-of-production date of your unit.
- Work out your value addition and your highest FOB export of the last three years.
- Check the notification for sector exclusions and the list of notified goods.
- Plan your clearances within the window, ending 31 March 2027.
Where do I read about other Budget changes?
See our post on Budget 2026-27 customs changes.
Can you check whether my unit qualifies?
Yes. Send us your start date, your export figures and the goods. We will check them against the notification. We are just a call and a message away.
- PIB: CBIC introduces one-time relief measure for eligible units in SEZs to sell manufactured goods in DTA at concessional customs duty rates (1 April 2026)
- Indian Customs (CBIC): notifications
Every fact here is taken from Government of India sources, as we read them on 12 November 2026. Please confirm against the original notification for your own shipment before you act. Rules change, and the right answer depends on your product, origin and destination.
Not sure how this applies to your shipment? Send us the product and the route. A call or a message is all it takes, and we are with you at every step of the way, whether you are importing or exporting.
Office (backup): +91 93733 11838
Multimodal Logistic Systems Pvt. Ltd., Pune, India. Written by Shankar Jha. We are consultants, not a law firm. This post is general information.