Government Introduces Concessional Customs Duty for SEZ to DTA Sales

The Ministry of Commerce & Industry has announced a new policy providing conditional concessional customs duty for goods manufactured in Special Economic Zones (SEZs) and sold to the Domestic Tariff Area (DTA). This initiative aims to bolster manufacturing capacity, benefiting approximately 1,200 SEZ units by improving economies of scale, reducing costs, and increasing resilience. However, exclusions apply to certain sectors such as agriculture, gems and jewellery, and petroleum. Valid from April 1, 2026, this policy seeks to maintain SEZ's export-oriented nature while addressing competitive concerns of displaced SEZ manufacturers.

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