Quick Summary
The Central Government has issued Notification No. 11/2026-Customs, granting conditional customs duty exemptions on goods manufactured by Special Economic Zone (SEZ) units and supplied to the Domestic Tariff Area (DTA). The notification will come into effect from April 1, 2026. Key Highlights of th
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FAQ :
The Central Government has introduced a conditional customs duty exemption for goods manufactured by Special Economic Zone (SEZ) units and supplied to the Domestic Tariff Area (DTA), effective from April 1, 2026.
The exemption primarily covers Basic Customs Duty (BCD) and, for certain goods, the Agriculture Infrastructure and Development Cess (AIDC), to the extent that these duties exceed specified concessional rates.
The notification includes a wide range of goods across sectors such as chemicals, petrochemicals, plastics, polymers, textiles, fabrics, metals, machinery, and electronics.
SEZ units must have commenced production before March 31, 2025, comply with all notification conditions, and be subject to audit under SEZ Rules, 2006.
Yes, the exemption does not apply to units in Free Trade and Warehousing Zones (FTWZ) or to goods imported into an SEZ and then cleared into the DTA without substantial manufacturing.
The exemption will be in force from April 1, 2026, to March 31, 2027, and may be extended or modified.
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