India Offers Lower Duty Sales for SEZ Units Amid Export Challenges
SEZ units can sell locally at lower duty for one year
The Economic TimesImage: The Economic Times
India has introduced a one-year measure allowing special economic zone (SEZ) units to sell goods in the domestic market at reduced customs duties, alongside extending the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme until September 30. This initiative aims to support approximately 1,200 SEZ manufacturing units during ongoing global challenges.
- 01SEZ units can sell domestically at reduced customs duties for one year.
- 02The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is extended until September 30.
- 03The measure aims to support around 1,200 SEZ manufacturing units.
- 04Goods must have a minimum value addition of 20% to qualify for reduced duties.
- 05The initiative is a response to higher American tariffs and ongoing global crises.
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In a strategic move to support exporters, the Indian government has announced a one-time relief measure for special economic zone (SEZ) units, allowing them to sell goods domestically at reduced customs duties for one year, from April 1, 2026, to March 31, 2027. This initiative is part of a broader effort to harmonize export promotion schemes and enhance exports, particularly amid rising American tariffs and global uncertainties. The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has also been extended by six months, until September 30, 2024. Approximately 1,200 SEZ manufacturing units are expected to benefit from this relief, which allows them to utilize idle capacity and support liquidity. The goods eligible for reduced duties include chemicals, engineering goods, textiles, and pharmaceuticals, among others, with customs rates varying between 5-12.5%. This timely measure aims to balance the challenges faced by SEZ units while protecting domestic industries, according to industry leaders.
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This measure will enable SEZ units to better utilize their production capacity, which can lead to job retention and support liquidity during challenging economic times.
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