Question : CONCESSIONS TO SEZS

(a) whether the manufacturers supplying goods to Special Economic Zone units can claim excise rebate and if so, the details thereof along with the details of service tax and other taxes levied under the Special Economic Zones (SEZs);

(b) whether the industrial sector has expressed concerns regarding approval under the single window clearance system and if so, the details thereof and the reaction of the Government thereto;

(c) whether the SEZ units are achieving a positive Net Foreign Exchange through deemed exports rather than actual exports and if so, the details thereof;

(d) whether there is a proposal to restrict the share of deemed exports that SEZ units can use to achieve a positive Net Foreign Exchange and if so, the details thereof; and

(e) the percentage of total SEZ production that has been physically exported during each of the last three years?

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (DR. D. PURANDESWARI)

(a) Supplies to SEZs for the authorized operations of the SEZ Units are exempted from payment of Central Excise Duties and Service Tax. However rebate for Central Excise Duty paid by DTA supplier on supply of goods to SEZ Units can be claimed from the jurisdictional Central Excise authorities.

(b) The SEZ Act 2005 provides for setting up of a Single Window Clearance Mechanism for speedy implementation of SEZ Projects. Accordingly, the State Governments are expected to take suitable steps to notify the SEZ policy and enact suitable enabling legislation in this regard for their respective States. A few States have enacted their State SEZ Acts.

(c) & (d) As per Rule 53 of SEZ Rules 2006 the SEZ units are under an obligation to achieve positive Net Foreign Exchange (NFE) earnings to be calculated cumulatively for a period of 5 years from the commencement of production. Under Rule 53 certain categories of sales/supplies have also been permitted to be counted towards NFE earnings. Value of transactions under such categories are a very small percentage of the total exports made from SEZs. The total exports from the SEZs outside the country and sales to Domestic Tariff Area from SEZs, during the financial years 2009-10 to 2012-13 and first quarter of current financial year (April, 2013 – June, 2013) are as under:

Financial	Value of	Supplies which	Sales to	Total	Percentage
Years	Exports	are treated	Domestic	Exports	shared of	towards	Tariff Area	column III	positive NFE	over column	earnings.	V	(Value in Rs. Crore)
I	II	III	IV	V	VI
2009-10	2,20,711.39	13,937.04	19,200.92	2,53,849.35	5.49%
2010-11	3,15,867.85	29,093.05	13,881.20	3,58,879.07	8.11%
2011-12	3,64,477.73	32,472.70	29,664.83	4,26,615	8%
2012-13	4,76,158.93	27,884.80	27,545.46	5,31,589	5%
2013-14#	1,13,299	8,055.70	7,481.91	1,28,836	6%

Financial Year	Physical Exports from SEZs	Growth Rate	(Value in Rs. Crore)	(over previous year)
2010-2011	3,15,868	43.11%
2011-2012	3,64,478	15.39%
2012-2013	4,76,159	31%
2013-2014	1,13,299	- 4.25%	(as on 30th June, 2013)