[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
NOTIFICATION NO. 11/2026-Customs
New Delhi, the 31st March, 2026
G.S.R....(E). – In exercise of the powers conferred by sub-section (1) of section 25 of
the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary
in the public interest so to do, hereby exempts, -
(i) the goods of the description as specified in column (3) of TABLE I below and falling
under the chapter or heading or sub-heading or tariff item of the First Schedule to the Customs
Tariff Act, 1975 (51 of 1975) as specified in the corresponding entry in column (2) of the said
TABLE, when manufactured by a Unit in a Special Economic Zone (hereinafter referred to as
‘SEZ’) and removed to Domestic Tariff Area (hereinafter referred to as ‘DTA’), from so much
of the duty of customs leviable thereon under the said First Schedule as is in excess of the
amount calculated at the rate as specified in the corresponding entry in column (4) of the said
TABLE subject to all the conditions specified in the Annexure to this notification;
(ii) the goods of the description as specified in column (3) of TABLE II below and falling
under the chapter or heading or sub-heading or tariff item of the First Schedule to the Customs
Tariff Act, 1975 (51 of 1975) as specified in the corresponding entry in column (2) of the said
TABLE, when manufactured by a Unit in a SEZ and removed to DTA, from so much of the
duty of customs leviable thereon under the said First Schedule as is in excess of the amount
calculated at the rate specified in the corresponding entry in column (4) of the said TABLE,
and from so much of the Agriculture Infrastructure and Development Cess (AIDC) leviable
under section 124 of the Finance Act, 2021 (13 of 2021), as is in excess of the amount calculated
at the rate specified in the corresponding entry in column (5) of the said TABLE subject to all
the conditions specified in the Annexure to this notification:
Provided that this exemption shall be available only if the Unit in the SEZ, -
(i) had commenced production of goods on or before the 31st day of March, 2025,
and
(ii) proves to the satisfaction of the proper officer, that the goods in respect of which
benefits of this exemption notification have been claimed, fulfil all the
conditions specified in the Annexure to this notification:
Provided further that nothing contained in this notification shall apply to,-
(i) Units set up in a Free Trade and Warehousing Zone, or
(ii) goods which after importation in the SEZ are removed, as such or after use, to
the DTA.
-
The Units claiming exemption under this notification shall be subject to audit under
Rule 79 of the Special Economic Zones Rules, 2006.
-
This notification shall come into force with effect from the 1st day of April, 2026.
-
Nothing contained in this notification shall have effect after 31st day of March, 2027.
TABLE I
| S. No. | Chapter or heading or sub-heading or tariff item | Description | BCD Rate in % |
|---|
| 1. | 2515 20 | All goods | 9 |
| 2. | 2516 20 00 | All goods | 9 |
| 3. | 2516 90 | All goods | 9 |
| 4. | 2518 | All goods | 9 |
| 5. | 2523 (except 2523 29) | All goods | 9 |
TABLE II
| S. No. | Chapter or heading or sub-heading or tariff item | Description | BCD Rate in % | AIDC Rate in % |
|---|
| 1. | 3102 10 10, 3102 10 90 | All goods | 5 | 5 |
| 2. | 3102 30 00 | All goods | 5 | 4 |
| 3. | 3406 | All goods | 10 | 5 |
| 4. | 3920, 3921 | Poly vinyl chloride (PVC) Flex Films Explanation.- For the purposes of this entry, the term PVC Flex Films includes PVC flex banner and PVC flex sheets. |
ANNEXURE
| Condition No. | Conditions |
|---|
| 1. | To avail exemption under this notification, the Bill of Entry for home consumption shall be filed by the Unit in SEZ on the common portal, and shall be assessed by the proper officer. |
| 2. | The goods for which exemption under this notification are claimed should have been manufactured by the Unit in the SEZ and should have undergone a minimum value addition (hereinafter referred to as ‘VA’) of 20 %, which shall be calculated as under: VA = A-(B+C) x 100 / (B+C) Where,- A= assessable value of goods removed into DTA by the Unit, B= sum total of cost, insurance and freight value of all imported inputs used for manufacture of such goods, and C= value of inputs procured from DTA used for manufacture of such goods. |
| 3. | The aggregate value of goods removed to the DTA by availing exemption under this notification in a financial year shall not exceed 30 % of the highest annual Free on Board (FOB) value of exports of the manufactured goods made by the Unit in the SEZ in any one of the three immediately preceding financial years. |
| 4. | No benefit of duty drawback or any other export benefit as admissible under the Foreign Trade Policy has been availed in respect of any of the inputs used in the manufacture of such goods, either by the Unit in the SEZ or by the supplier of the inputs, as the case may be. |
| 5. | At the time of removal of manufactured goods to the DTA, the Unit shall,- A. produce a certificate from the jurisdictional Development Commissioner certifying the following,- (i) date of commencement of production by the Unit in the SEZ, (ii) the annual FOB value of exports of manufactured goods made by the said Unit in each of the preceding three financial years, and (iii) the extent of value addition achieved as prescribed in Condition No. 2 above. B. furnish a declaration to pay the duty leviable on such goods, but for the exemption contained in this notification, in the event of non-fulfilment of any of the conditions specified herein. |
Explanation: For the purposes of this notification,-
(i) “Common Portal” shall have the meaning assigned to it in clause (7B) of section 2 of
the Customs Act, 1962 (62 of 1962);
(ii) “Development Commissioner” shall have the meaning assigned to it in clause (h)
section 2 of the Special Economic Zones Act, 2005 (28 of 2005);
(iii) “Domestic Tariff Area” shall have the meaning assigned to it in clause (i) section 2 of
the Special Economic Zones Act, 2005 (28 of 2005);
(iv) “Foreign Trade Policy” means Foreign Trade Policy, 2023 published by the
Government of India in the Ministry of Commerce and Industry vide notification No.
1/2023 dated the 31st March, 2023;
(v) “Free Trade and Warehousing Zone” shall have the meaning assigned to it in clause (n)
of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);
(vi) “Import” shall have the meaning assigned to it in clause (o) section 2 of the Special
Economic Zones Act, 2005 (28 of 2005);
(vii) “Inputs” means raw materials, intermediates, components, consumables, parts and
packing materials;
(viii) “Manufacture” means to make, produce, fabricate, assemble, process or bring into
existence, by hand or by machine, a new product having a distinctive name, character
or use, but shall not include mere refrigeration, packing, re-packing, affixing or printing
of marks, labels, logos, or other like distinguishing signs on goods or their packaging,
repair or refurbishing;
(ix) “Proper Officer” shall have the meaning assigned to it in clause (34) of section 2 of the
Customs Act, 1962 (62 of 1962);
(x) “Special Economic Zone” shall have the meaning assigned to it in clause (za) of section
2 of the Special Economic Zones Act, 2005 (28 of 2005);
(xi) “Unit” shall have the meaning assigned to it in clause (zc) of Section 2 of the Special
Economic Zones Act, 2005 (28 of 2005).
[F. No. 334/04/2026-TRU]
(Dheeraj Sharma)
Under Secretary to the Government of India
