SEZ concessional duty framework signals a cautious shift from export-only zones toward integrated manufacturing policy.
A concessional customs duty framework for certain SEZ units supplying to the Domestic Tariff Area reduces the basic customs duty burden while IGST continues to apply, subject to eligibility restrictions, mandatory manufacturing, sales caps linked to export performance, time limits, audit oversight, and faceless assessment. The commentary treats the measure as a controlled policy experiment balancing domestic industry protection against SEZ underutilisation, while also pointing to a broader shift from an export-only SEZ model toward a more integrated manufacturing framework. (AI Summary)