Union Budget 2026-27: customs tariff simplification, export input schemes widened, SEZ sales to DTA

The Budget proposes removing long-standing customs duty exemptions on items now manufactured in India or with negligible imports, and incorporating certain effective rates into the tariff schedule itself. The duty-free import limit for specified inputs used in processing seafood for export rises from 1% to 3% of the previous year's FOB export turnover. Duty-free import of specified inputs, currently available for exports of leather or synthetic footwear, is extended to exports of shoe uppers. The period for export of the final product is extended from 6 months to 1 year for exporters of leather or textile garments, leather or synthetic footwear and other leather products. As a special one-time measure, eligible manufacturing units in SEZs will be allowed to sell into the Domestic Tariff Area at concessional rates of duty, limited to a prescribed proportion of their exports.

Budget proposals as announced; the release states that necessary regulatory changes will be undertaken to operationalise the SEZ-to-DTA measure, so it is not self-executing. effectiveDate is null because no commencement dates are given.

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