CBIC opens concessional-duty window for SEZ DTA sales
SEZ units must meet 20% value-add and 30% sales cap for concessional DTA clearance
Change
India's CBIC opened a concessional-duty SEZ DTA window with a 30% cap and 20% value-add rule, effective April 1, 2026 to March 31, 2027.
Why it matters
Eligible SEZ units now have a 12-month concessional-duty route for DTA sales. Units operational before March 31, 2025 can sell up to 30% of prior peak export value at 5â12.5% rates, subject to 20% minimum value addition.
Implications
- — SEZ unit compliance teams must verify eligibility against the March 31, 2025 production cutoff — ineligible units cannot access concessional duty
- — Manufacturing and costing teams must ensure at least 20% value addition on goods cleared — shortfall voids concessional duty eligibility
- — Sales and export planning teams must cap DTA clearances at 30% of peak exports — excess volumes lose concessional treatment
- — Trade compliance and customs teams must align clearance documentation with the scheme rules — incorrect filings risk duty reclassification
Who is affected
- — SEZ manufacturing unit compliance teams
- — SEZ manufacturing and costing teams
- — SEZ export and domestic sales planning teams
- — Trade compliance and customs documentation teams
What to watch
- — CBIC clarifications on excluded sectors and eligible goods lists
- — Enforcement checks on value-add calculations and DTA cap breaches
- — Utilisation of the concessional window before March 31, 2027 expiry