The Government of India, Ministry of Finance has issued Notification No. 11/2026-Customs dated March 31, 2026, introducing a special one-time relief measure for units operating in Special Economic Zones (SEZs). The notification, issued under Section 25(1) of the Customs Act, 1962, has been brought into force in public interest with the aim of facilitating smoother clearance of goods from SEZs into the Domestic Tariff Area (DTA) and providing transitional support to eligible manufacturing units.
Under the provisions of the notification, goods manufactured by SEZ units and subsequently cleared to the DTA shall be eligible for a partial exemption from customs duties. Specifically, the exemption is available on that portion of the Basic Customs Duty (BCD) which exceeds the concessional rates prescribed in the notification. In certain specified cases, a similar exemption has also been extended in respect of the Agriculture Infrastructure and Development Cess (AIDC), thereby reducing the overall duty burden on such clearances. The concessional rates have been detailed in the accompanying tables covering a wide range of tariff items across multiple sectors.
The notification lays down specific eligibility conditions for availing the benefit of this relief measure. It stipulates that the SEZ unit must have commenced production on or before 31st March, 2025, and must demonstrate to the satisfaction of the appropriate officer that the goods in question fulfill all conditions prescribed under the notification. Further, units availing the exemption shall be subject to audit in accordance with Rule 79 of the Special Economic Zones Rules, 2006, thereby ensuring proper compliance and verification.
At the same time, the notification clearly excludes certain categories from its scope. The benefit of exemption shall not be available to units located in Free Trade and Warehousing Zones (FTWZs). Additionally, goods that are imported into SEZs and subsequently cleared into the DTA, whether as such or after use, shall not qualify for the concessional treatment under this measure.
The relief measure has been made effective from 1st April, 2026 and shall remain in force up to 31st March, 2027, unless withdrawn earlier. This limited validity underscores its nature as a temporary support mechanism intended to address specific transitional or operational challenges faced by SEZ units.
The notification encompasses an extensive list of goods across various tariff chapters, including chemicals, plastics, textiles, metals, machinery, and electronic goods. The prescribed concessional duty rates generally range between 6.5 per cent and 12.5 per cent, depending on the nature and classification of the goods, thereby ensuring a balanced approach between revenue considerations and industry support.
Overall, this initiative is expected to provide significant relief to SEZ manufacturing units by easing the duty burden on domestic clearances, improving liquidity, and strengthening linkages between SEZs and the domestic economy. It also reflects the Government’s continued commitment to enhancing ease of doing business while maintaining a robust and transparent tax framework.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/03/CBIC-N.-No.-11-2026-Customs-Special-one-time-relief-measure-for-SEZ.pdf
