The government has allowed the special economic zones (SEZs) to re-export commodities barred from outbound shipments, like non-basmati rice and pulses, after importing them in raw form and processing in these tax-free enclaves.
"It has been decided that SEZ units should be permitted to export prohibited items provided they import raw-material for the same...," the Commerce Ministry has said.
However, the SEZ units would have to take a prior permission from the inter-ministerial Board of Approval (BoA), headed by Commerce Secretary Rahul Khullar for re-exports. It is also stipulated that these units cannot under any circumstances source items locally for export purpose.
The government has prohibited exports of agriculture commodities like non-basmati rice and pulses, as prices of these essential items were skyrocketing in domestic markets. SEZ units also automatically come under purview of this prohibition.
SEZ units suggestion have been seeking approval for exports as they do not procure from domestic area.
Welcoming the decision Raheja SEZ Chairman and MD Naveen Raheja said, "It is a very positive move and benefit all the sectors, including food and chemicals."
Under the SEZ Act, units in these zones are given 100 per cent tax exemption on their income for the first five years and 50 per cent in the next five years. A total of 579 SEZs have been approved in the country and 335 of them have been notified. Of them, 101 are currently operational.
