SEZ recast may allow domestic suppliers to operate within zones

  • 04-Feb-2022
  • SEZ recast may allow domestic suppliers to operate within zones

The proposed new legislation to govern Special Economic Zones (SEZs) is likely to allow domestic suppliers to operate within such zones as the government works to remove their export focus and make them compliant with World Trade Organization norms, officials said.

At present, companies selling products in domestic markets cannot operate in SEZs.

Officials said the sales and procurement transactions done by SEZ units in domestic tariff area (DTA), which are done through a separate mechanism, will also be integrated with the customs' e-filing portal.

"The idea is to take the export focus away from SEZs and make them WTO-compliant," one of the officials said.

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