Commerce Secretary Engages with Industry Stakeholders on SEZ Policy and Operational Matters

Stakeholder Interaction Organised by EPCES

An industry interface organised by the Export Promotion Council for EOUs & SEZs brought together over 150 stakeholders for an interaction with Commerce Secretary Shri Rajesh Agrawal, IAS, in Chennai. Representatives from Special Economic Zone units and developers outlined issues linked to SEZ-Domestic Tariff Area transactions, duty foregone, ICEGATE connectivity constraints, import monitoring systems, and challenges related to reverse job work faced by MSMEs. IT and ITES stakeholders raised concerns regarding rules on classification of vacant built-up area, timelines for renewal of Letters of Approval, and procurement attestation requirements that differ from GST norms.

Key Policy and Operational Concerns Raised

Participants highlighted the absence of parity for SEZ units under concessional import duty and duty drawback schemes that are available to DTA units. They also referred to operational inefficiencies arising from the new Procurement Certificate process, countervailing duties imposed by the United States, and the need to review QCO applicability for SEZ-to-DTA sales, particularly in cases such as KASEZ.

Commerce Secretary’s Response

The Commerce Secretary expressed appreciation to EPCES for facilitating direct engagement and stated that the Ministry would examine each of the issues in detail with the objective of strengthening ease of doing business. He noted that shifts in global value chains, rising demand for DTA market access, and the changing influence of FTAs require SEZ policies that reflect current economic conditions.

He underscored the importance of long-term planning and data-supported policymaking and encouraged industry participants to prepare structured analyses to assist in future reforms. He affirmed that connectivity concerns involving BSNL and matters related to import monitoring systems would be reviewed, reiterating the Government’s commitment to improving the SEZ ecosystem to ensure it remains dynamic, responsive, and globally competitive.

He stated that the Ministry will look into all issues raised during the interaction and work toward practical solutions aimed at building a more flexible, efficient, and globally aligned SEZ framework.