New Delhi: Shifts in global value chains, rising demand for domestic tariff area (DTA) access, and the evolving impact of free trade agreements (FTAs) require special economic zone (SEZ) policies to be realigned with current economic realities, commerce secretary Rajesh Agrawal said on Friday.
Agrawal was at an industry interface organised by the Export Promotion Council for EOUs and SEZs (EPCES) in Chennai.
Participants at the interface drew Agrawal’s attention to the lack of parity for SEZ units under concessional import duty and duty drawback schemes available to DTA units, a statement issued by the commerce and industry ministry said.
The EPCES brought together over 150 stakeholders for an interaction with Agrawal.
Stakeholders also pointed to operational inefficiencies introduced by the new procurement certificate process, countervailing duties imposed by the United States (US), and the need to review the applicability of quality control orders (QCOs) for SEZ-to-DTA sales, particularly in cases such as the Kandla Special Economic Zone (KASEZ), it said.
Representatives and developers of SEZs and their units highlighted issues related to SEZ-DTA transactions, import monitoring systems, and reverse job work challenges faced by micro, small and medium enterprises (MSMEs).
“IT/ITES stakeholders raised concerns over rules on vacant built-up area classification, timelines for renewal of Letters of Approval (LoA), and procurement attestation requirements that differ from GST norms,” the statement said.
{{/usCountry}}“IT/ITES stakeholders raised concerns over rules on vacant built-up area classification, timelines for renewal of Letters of Approval (LoA), and procurement attestation requirements that differ from GST norms,” the statement said.
{{/usCountry}}Responding to the issues, the commerce secretary assured EPCES that the ministry would “examine each challenge in detail with a view to strengthening ease of doing business”.
“He noted that shifts in global value chains, increased demand for DTA market access, and the evolving impact of FTAs necessitate SEZ policies that align with current economic realities,” the statement said.
Agrawal emphasised the importance of long-term vision and data-driven policymaking, urging industry to prepare structured analyses to support reform considerations. He also assured stakeholders that connectivity concerns with BSNL and issues related to import monitoring systems would be reviewed, reiterating the government’s commitment to enhancing the SEZ ecosystem to make it more dynamic, responsive and globally competitive.
The ministry will examine all issues raised and work toward pragmatic solutions to build a more flexible, efficient and globally aligned SEZ framework, Agrawal added.