SEZs raise countervailing duties imposed by US, QCOs issues with Comm min

New Delhi, Nov 21 (PTI) Special economic zones have urged a review of the applicability of quality control orders (QCOs) for the sale of goods from SEZs to the domestic tariff area, the commerce ministry said on Friday.

They have also flagged issues regarding the lack of parity for SEZ units under concessional import duty and duty drawback schemes available to DTA (domestic tariff area) units, operational inefficiencies introduced by the new procurement certificate process, and the countervailing duties imposed by the US.

The SEZ developers and units raised these issues during a meeting with Commerce Secretary Rajesh Agrawal.

They urged to "review QCO applicability for SEZ-to-DTA sales," the ministry said.

The secretary stated that the ministry will examine all issues raised and work toward pragmatic solutions to build a more flexible, efficient and globally aligned SEZ framework.

Representatives from Special Economic Zone (SEZ) units and developers highlighted issues related to these zones - DTA transactions, duty foregone, ICEGATE connectivity constraints, import monitoring systems, and reverse job work challenges faced by MSMEs.

IT sector 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, it said.

"Commerce Secretary assured that the Ministry would examine each challenge in detail with a view to strengthening ease of doing business," it said.

He noted that shifts in global value chains, increased demand for DTA market access, and the evolving impact of free trade agreements necessitate SEZ policies that align with current economic realities.

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. PTI RR MR