(MENAFN- KNN India) New Delhi, Nov 22 (KNN) An industry interface organised by the Export Promotion Council for EOUs & SEZs (EPCES) on Friday saw over 150 stakeholders engage with Commerce Secretary Rajesh Agrawal, IAS, on policy and operational challenges affecting Special Economic Zones (SEZs).

Participants from SEZ units and developers raised concerns related to SEZ–DTA transactions, duty-foregone calculations, Indian Customs EDI Gateway (ICEGATE) connectivity issues, import monitoring systems, and reverse job-work difficulties faced particularly by Micro, Small and Medium Enterprises (MSMEs).

Stakeholders from the IT/ITES sector flagged issues around the classification of vacant built-up area, delays in renewal of Letters of Approval (LoA), and procurement attestation requirements that deviate from GST norms.

Delegates also highlighted the absence of parity with Domestic Tariff Area (DTA) units in concessional import duty and duty drawback schemes, inefficiencies arising from the new Procurement Certificate mechanism, countervailing duties imposed by the US, and the need to review QCO applicability on SEZ-to-DTA sales, including recent cases in KASEZ.

The Commerce Secretary noted that global value-chain shifts, rising demand for DTA market access, and the evolving influence of FTAs require SEZ policies that reflect contemporary economic conditions.

Agrawal stressed the importance of long-term planning and data-driven policymaking, encouraging industry to present structured analyses to support policy reforms.

He added that concerns related to BSNL connectivity and import monitoring systems would be reviewed, reiterating the Government's commitment to strengthening the SEZ framework to make it more dynamic, efficient and globally competitive.

He concluded by assuring stakeholders that all issues raised would be assessed and addressed with the objective of developing a more flexible and globally aligned SEZ ecosystem.

(KNN Bureau)

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