Trade board to discuss SEZs at its meet today

The freeze on notifications and fresh approvals to special economic zones (SEZs) is likely to figure prominently in the meeting of the Board of Trade.

The board is scheduled to meet tomorrow under the chairmanship of Kumar Mangalam Birla.

Sources in the Export Promotion Council said the issue was not on the official agenda but with the delay in fresh approvals causing tremendous uncertainty, the issue could not be ignored.

New approvals were suspended after Prime Minister Manmohan Singh said SEZs should not come up unless there was a proper rehabilitation policy for displaced farmers.

Apart from the SEZ issue, the board will look into the proposed amendments to the Foreign Trade (Development and Regulation) Act, 1992. These changes include bringing of services under the Act, with exemptions for certain services, regulating import and export of dual-use items and providing safeguards to check surge in imports.

A draft Bill to amend the Act is being prepared.

The board will also consider removal of revenue ceiling under focus market and focus product schemes. "Estimation of revenue outgo from export growth in specified markets products is extremely difficult and it is not possible to make an accurate assessment," a Board of Trade note said.

The board will also discuss inclusion of countries belonging to the Commonwealth of Independent States and other markets in the focus market scheme.

The proposal to create a zero duty window compared with the existing 5 per cent in the export promotion capital goods scheme is also on the agenda.

The 5 per cent duty was created when the peak Customs duty was close to 30 per cent. However, the peak duty had now come down to 10 per cent and it was essential to create a window for zero duty regime under the scheme, the note said.