Question : Boosting Exports from SEZs

a) whether the goods manufactured in Special Economic Zones (SEZs) when sold in the domestic market are levied an import duty which places them at a disadvantage compared with goods imported through free trade agreements;

b) if so, whether this has affected SEZs adversely both domestically and in its exports and if so, the details thereof;

c) whether the Government has proposed to bring down the tariffs and minimum alternative tax levied on SEZs units that sell goods in the domestic market;

d) if so, the details and the present status thereof; and

e) the other steps taken or being taken by the Government to boost exports from SEZs?

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)
(SMT. NIRMALA SITHARAMAN)
(a) and (b): As per Section 30 of the Special Economic Zones Act, 2005, any goods removed from a Special Economic Zone (SEZ) to the Domestic Tariff Area shall be chargeable to duties of customs including anti-dumping, countervailing and safeguard duties under the Customs Tariff Act, 1975, where applicable, as leviable on such goods when imported.

(c) and (d): No Madam.

(e): In order to boost exports from SEZs Government periodically reviews the policy and operational framework of SEZs and takes necessary measures so as to facilitate speedy and effective implementation of SEZs. The Government has notified SEZ Rules (Amendment), 2015 vide G.S.R. 5(E) dated 02.01.2015 allowing dual utilization of facilities in Non-Processing Area (NPA) of SEZs by both SEZ and non-SEZ entities. Besides, timelines for disposal of various approvals of Developers and Units have been introduced in all SEZ Zones.
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