India grants temporary customs duty relief for SEZ goods sold domestically

India grants temporary customs duty relief for SEZ goods sold domestically

The move was aimed at cushioning exporters battered by steep US tariffs and rising geopolitical uncertainty.

File image of new vehicles at an automotive manufacturing plant yard in Chengalpattu, Tamil Nadu, India. Lowered duty rates will range from 5% to 12.5% across industries. (EPA Images pic)
NEW DELHI:
India will grant a temporary customs duty relief for goods manufactured in special economic zones (SEZs) and sold in the domestic market, according to a government notice dated Tuesday.

The lowered duty rates will range between 5% to 12.5% across industries, with levies on some industrial chemicals and fertilisers cut to 6.5% from 7.5%, the notice showed.

The relief will be effective from April 1, 2026 to March 31, 2027 and will be available to businesses that started production on or before March 31, 2025.

In February, India unveiled a one‑time concession allowing eligible manufacturing units in SEZs to sell goods domestically at a reduced duty rate.

The move was aimed at cushioning exporters battered by steep US tariffs and rising geopolitical uncertainty.

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