According to an analysis done by the Export Promotion Council for export-oriented units (EOUs) and SEZs (EPCES), only about 13 per cent of supplies from SEZs to DTA will see a marginal 1 per cent duty cut.
That apart, the export promotion council is also worried that the basis of such classification and calculation of the concession is not clear. As a result, there are hardly any takers for this relief measure.
Last week, the finance ministry announced a one-time relief measure for units operating in SEZs, allowing them to sell goods domestically at a lower Customs duty for one year amid the geopolitical uncertainties.
The concession is expected to help exporters deal with the uncertainties, and enable units in SEZs to utilise idle capacity amid an unpredictable export market. The measure is effective from April 1, 2026, to March 31, 2027.
The calculations were made on the basis of the sum of DTA sales from SEZs during FY24 for key products.
According to calculations, supplies worth $24.95 billion, out of the $30.64 billion of goods sold domestically, will not receive Customs duty concession.
Similarly, goods worth $4.18 billion will receive 1 per cent concession.
The lower duty is restricted to units that started production on or before March 31, 2025.
At least 20 per cent value addition needs to be ensured and there will be a need to limit domestic sales to 30 per cent of the units’ highest export value in the past three years.
The industry is also seeking a longer relief period of around three years, instead of one year that has been given by the finance ministry.
Besides, the industry, for a long time, has been seeking fair access to sell goods in the domestic market at a comparable rate with regard to free trade agreement (FTA) partner nations.
However, with the current structure of relief measures, imports under FTA will not be substituted by SEZ units.
These issues were also discussed during a meeting with the department of commerce on Tuesday.
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