New Delhi: Special economic zones (SEZs) have asked the government to review the applicability of quality control orders (QCOs) on goods sold from SEZs to the domestic tariff area (DTA), the commerce ministry said on Friday. Theyalso flagged the absence of parity with DTA manufacturers in concessional import duty and duty drawback schemes, delays caused by the new procurement certificate process, and countervailing duties imposed by the US. These concerns were raised during a meeting between SEZ developers, units and Commerce Secretary Rajesh Agrawal. Participants specifically sought a relook at QCO requirements for SEZ-to-DTA sales, the ministry said.
Agrawal assured that all issues would be examined and stressed the need for pragmatic solutions to create a more flexible, efficient and globally aligned SEZ framework. Developers highlighted challenges related to DTA transactions, duty foregone, ICEGATE connectivity, import monitoring systems and reverse job work, especially for MSMEs.
IT sector representatives raised concerns over classification of vacant built-up area, renewal timelines for Letters of Approval and procurement attestation requirements that differ from GST norms.
The commerce secretary said that shifts in global value chains, rising demand for DTA access and the impact of free trade agreements require SEZ policies that reflect current economic realities. He also promised a review of BSNL connectivity issues and import monitoring system constraints, reaffirming the govt’s commitment to strengthening ease of doing business and making the SEZ ecosystem more dynamic and competitive.