The Government of India has issued a clarification vide Letter No. K-43022/105/2025-SEZ dated January 02, 2026 regarding the duty liability on goods sent from Special Economic Zones (SEZs) to the Domestic Tariff Area (DTA) for testing, quality checks, or research and development purposes under Rule 50(3) of the SEZ Rules, 2006.
The clarification states that as per Rule 50(3) of the SEZ Rules, 2006, goods may be temporarily transferred from an SEZ to the DTA for quality testing or research and development purposes without payment of customs duty, subject to the execution of an undertaking to the Authorized Officer for the return of such goods. In cases where the goods are consumed or destroyed during the testing or research process, a certificate confirming such consumption or destruction is required to be furnished.
It has further been clarified that Rule 51 of the SEZ Rules, 2006 lays down the procedure for temporary removals of goods from SEZs to the DTA. In instances where goods are sent for quality testing or research and development and are consumed in the process, no customs duty shall be leviable on such goods, provided the conditions prescribed under Rule 50(3) are fulfilled.
The clarification has been issued by the Department of Commerce, Ministry of Commerce & Industry, with the approval of the Competent Authority, bringing clarity and certainty for SEZ units and stakeholders engaged in testing and R&D activities.
The Letter can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/01/DoC-letter-dt.-02.01.2026.pdf
