CBIC introduces one-time relief measure for eligible units in SEZs to sell manufactured goods in Domestic Tariff Area (DTA) at concessional customs duty rates to address concerns arising due to global trade disruptions, as announced in Union Budget 2026–27

**Executive Summary** The Central Board of Indirect Taxes and Customs (CBIC) has introduced a one-time relief measure allowing eligible SEZ manufacturing units to sell goods in the Domestic Tariff Area (DTA) at concessional duty rates from April 1, 2026, to March 31, 2027. This measure, announced in the Union Budget 2026-27, addresses global trade disruptions while maintaining an export focus. Eligible units must have commenced production by March 31, 2025, and must adhere to specific value addition and sales cap requirements. **Key Points / Main Content** **Eligibility and Timeline** * **Effective Period:** The relief window is active from April 1, 2026, to March 31, 2027, under Notification No. 11/2026-Customs. * **Cut-off Date:** Only SEZ units that commenced production on or before March 31, 2025, are eligible for the benefits. **Operational Requirements** * **Value Addition:** Manufactured goods cleared under this window must undergo a minimum of 20% value addition over inputs. * **DTA Sales Cap:** Sales to the DTA at concessional rates are restricted to 30% of the unit's highest annual FOB value of exports within the three immediately preceding financial years. * **Sector Exclusions:** Certain sensitive sectors are excluded from the relief window to safeguard the domestic industry. **Concessional Duty Structure** The relief applies to customs duties including Basic Customs Duty (BCD), AIDC, and Health Cess as follows: * **7.5%** reduced to **6.5%** * **10%** reduced to **9%** * **12.5% and 15%** reduced to **10%** * **20%** reduced to **12.5%** * **Between 20% and 30%** reduced to **15%** * **Between 30% and 40%** reduced to **20%** **Implementation Mechanism** * **Automation:** The relief window will be managed through the CBIC’s automated system. * **Assessment:** The assessment of bills of entry for DTA clearances will be conducted via a faceless assessment mechanism. * **Clarifications:** Detailed FAQs are being issued to provide further guidance. **Impact Analysis** **Manufacturing Units in SEZs** **Impact** Eligible units gain a temporary competitive advantage to sell manufactured goods in the domestic market at reduced costs, helping mitigate the impact of global trade disruptions. **Action Required** Units must ensure they meet the March 31, 2025, production commencement deadline, maintain 20% value addition, and limit DTA clearances to 30% of their peak export performance. **Domestic Industry (DTA Units)** **Impact** The domestic industry is protected by the exclusion of sensitive sectors and the enforcement of value addition requirements to ensure a level playing field. **Action Required** No specific action is required, though the industry is indirectly affected by the entry of SEZ goods at concessional rates. **CBIC / Customs Authorities** **Impact** Authorities are responsible for overseeing the automated implementation and faceless assessment of these specific DTA clearances. **Action Required** The CBIC must issue detailed FAQs and manage the automated system for processing bills of entry under Notification No. 11/2026-Customs.

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