Govt Considering Several Measures to Help Revive Special Economic Zones – News18

The authorities is contemplating a number of measures corresponding to a versatile framework on the market of merchandise manufactured in particular financial zones (SEZs) within the home market, straightforward de-notification norms, and streamlining approval processes for items, an official mentioned. The goal is to assist revive SEZs and facilitate enterprise transactions between SEZ and home tariff space (DTA) or the home market. SEZs are enclosures that are handled as overseas territories for commerce and customs duties, with restrictions on obligation-free gross sales outdoors these zones within the home market.

To search views of various ministries on these measures, the commerce ministry has circulated a observe on a draft SEZ (particular financial zone) modification invoice 2023. The inter-ministerial session goes at a quick tempo and the invoice is probably going to be launched within the forthcoming Winter session of Parliament which is able to start on December 4 and proceed until December 22.

This modification invoice will likely be launched instead of the proposed Development of Enterprise and Service Hubs (DESH) invoice, the official, who didn’t want to be named, mentioned. “The amendment bill is aimed to help revive SEZs and facilitate business transactions between SEZ and DTA. It proposes to allow sales from SEZ to DTA on duty foregone basis; permitting partial de-notification of zones; easier notification norms; streamlining of approval for SEZs units,” the official added.

Recently, Commerce and Industry Minister Piyush Goyal mentioned the federal government is taking a look at easing sure restrictions for items in SEZs to promote the sector’s progress. Think tank Global Trade Research Initiative (GTRI) in a report has steered the federal government to enable sale of merchandise manufactured in SEZs within the home market on cost of obligation foregone on inputs as that may assist promote worth addition.

At current, items in SEZs are allowed to promote their merchandise in DTA on cost of duties on an output foundation (completed items). GTRI Co-Founder Ajay Srivastava mentioned the federal government already permits DTA gross sales on cost of obligation foregone on enter foundation to companies working below the Manufacturing and Other Operations in Warehouse Regulations (MOOWR) scheme. The authorities can “extend the same concession to the SEZs for parity sake. This will encourage value addition within the SEZ, as in most cases, the tariff on finished products is higher than on inputs,” Srivastava mentioned.

He added that SEZ items may very well be incentivised to enhance worth addition to avail the good thing about DTA gross sales, which may additional improve technological development and ability growth. Companies or items working inside SEZs are allowed to import supplies and parts obligation-free, with the situation that the completed items produced are meant to be exported out of India and bought within the Indian home market on cost of relevant duties on the output.

SEZs have emerged as an vital contributor to India’s exports. Total exports from these zones stood at USD 155.8 billion in 2022-23. These included USD 61.6 billion of merchandise and USD 94.2 billion of service exports.

(This story has not been edited by News18 workers and is revealed from a syndicated information company feed – PTI)