CBIC issues notification extending concessional customs duty benefit on clearance of manufactured goods from SEZ to DTA

In brief

For the last few years, the government has been holding stakeholder consultations, including review of policies, to revive manufacturing in Special Economic Zones (SEZ). The key ask of the trade was access to the Domestic Tariff Area (DTA) market as these are subject to applicable customs duty and utilisation of idle capacity. 

In Budget 2026, taking into consideration the global trade disruption and the consequent need to utilise the idle capacity, the government, as a one-time measure, proposed permitting SEZ units to undertake DTA sales on payment of concessional customs duty. 

Consequent to the above proposal and after due deliberation, the Central Board of Indirect Taxes and Customs (CBIC) has issued a notification¹ extending the concessional rate of customs duty on clearance of manufactured goods from SEZs to DTAs, subject to conditions and procedure as stipulated