Commerce Ministry considers extension of SEZ to non-export units
Commerce Ministry considers extension of SEZ to non-export units
The commerce ministry is considering a proposal to allow existing Special Economic Zone (SEZ) units to sell part of their products in the domestic market at lower customs duty.
SEZ is a specially designated duty-free enclave, and shall be treated as foreign territory for business operations and duty and tariff purposes.
Objective
- The main objectives of SEZs are to create additional economic activity, promote exports, encourage investment from domestic and foreign sources, create employment opportunities, develop infrastructure, etc.
- All Indian laws are applicable in SEZs, unless specifically exempted as per SEZ Act/Rules.
Importance of expanding SEZs to non-export units
- Utilization of facilities will improve, as SEZs operate at lower capacities.
- Better infrastructure facilities with integrated real estate, electricity and transport facilities and smooth administrative procedures.
- SEZ developers will be helped to boost business in the COVID-19 induced slowdown.
- Earlier, the ‘Baba Kalyani Committee’ (2018) on SEZs had submitted a proposal to rename the SEZ as 3Es: Employment and Economic Enclave, so that it could move from a center of exports to a catalyst of economic and employment growth.
Source – The Hindu
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