Govt mulls allowing SEZ products in domestic mkt
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New Delhi: The Union Commerce Ministry has sought views of different departments on proposed measures to revive special economic zones (SEZs) and facilitate business transactions between SEZ and the domestic market, a senior official said on Monday.
The official said that the ministry has suggested allowing the sale of products manufactured in SEZs in the domestic market on payment of duty foregone on inputs as that would help promote value addition.
“The main issue in SEZs is that we are not able to get economies of scale. The connect between SEZs and the domestic tariff area (DTA) or domestic market has to be improved. There are also issues if DTA is selling to SEZs,” the official said.
“So, we have suggested duty foregone basis sales. There are also issues with regards to job work. For example if an IT firm has to get some work from the domestic market, they need permission. We have sent a draft cabinet note,” the official added.
At present, units in SEZs are allowed to sell their products in the DTA on payment of duties on an output basis (finished goods). For these changes, the Commerce Ministry has proposed amendments in the SEZ law. The government is considering several measures such as a flexible framework for the sale of products manufactured in SEZs in the domestic market, and streamlining approval processes for units.
