India Launches Temporary Customs Duty Relief for SEZ Goods

The Indian government introduced temporary customs duty relief for goods made in special economic zones. New rates range from 5% to 12.5% starting today.

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The government of India has announced a temporary reduction in customs duties for goods manufactured within Special Economic Zones (SEZs) and sold in the domestic market. According to a government notice issued on Tuesday, the lowered duty rates will range between 5% and 12.5% across various industries, providing a significant fiscal cushion for businesses operating in these zones.

A mobile crane carries a container at Deendayal Port in Kandla, Gujarat, in April 2025, illustrating the logistics and trade infrastructure in India. REUTERS/Amit Dave/File Photo

This relief measure is scheduled to take effect from April 1, 2026, and will remain available until March 31, 2027. The government has specified that the benefit will be accessible only to businesses that commenced their production activities on or before March 31, 2025. This move is expected to facilitate smoother domestic trade for export-oriented units while maintaining a structured duty framework.

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