India grants 5–12.5% temporary customs duty relief for SEZ goods sold domestically
Procurement teams at buyers pay 5–12.5% lower customs duty on SEZ-made goods until Mar 31, 2027
Change
India will apply reduced customs duty rates of 5%–12.5% on goods manufactured in special economic zones (SEZ) and sold into the domestic market from April 1, 2026 through March 31, 2027.
Why it matters
The notice limits eligibility to businesses that commenced production on or before March 31, 2025. The lowered duty bands are set industry-wise, with rates varying between 5% and 12.5% across sectors.
Implications
- — Import/customs compliance teams at Indian firms importing SEZ-manufactured goods must apply the reduced 5%–12.5% customs rates on import entries for shipments cleared between April 1, 2026 and March 31, 2027 — import entries not processed under the relief will incur standard customs duties.
- — Procurement teams at buyers of SEZ-produced goods must verify supplier production-start dates and confirm suppliers commenced production on or before March 31, 2025 before contracting or scheduling shipments for the relief window — purchases tied to suppliers that do not meet the eligibility date will not qualify for the temporary duty rates.
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Source
View on Economic Times