The Hindu Business Line : SEZ rules to be finalised this month

Kolkata, Sept 4 The Centre is planning to refund service tax pertaining to all activities of a special economic zone, inside or outside the SEZ, through amendment of the Union SEZ rule by the end of this month, according to Mr G.K. Pillai, Commerce Secretary.

The Centre would also finalise SEZ rules by month-end to delegate greater financial autonomy to the office of the Development Commissioner, Mr Pillai said while addressing an interactive session with the members of Export Council for EoUs and SEZ units here on Thursday. The new rule would also give more powers to the CEOs of the SEZs while ensuring that the rents collected from the SEZs were available for improvement of SEZ infrastructure, he said.

Speaking to presspersons on the sidelines of the seminar, the Commerce Secretary said, “The Empowered Group of Ministry recently approved certain amendments of the Union SEZ Rule and the necessary notifications would be issued by September.”

Among the proposed amendments, he pointed out, was the issue of refund of service tax for any activity inside or outside the SEZ pertaining to the SEZ. Activities outside the SEZ constituted port-handling charges, among others, he said.

Drawback eligibility

Under the amended rules, the suppliers of raw materials from the domestic tariff area to the developers of SEZs would also be eligible for duty entitlement pass book or drawbacks, Mr Pillai said. Only suppliers to existing SEZ units are currently eligible for such duty neutralisation schemes. The proposed amendments also include reducing the required area for getting SEZ status for the handicrafts sector from 100 hectares to 10 hectares.

Mr Debesh Das, West Bengal Information and Technology Minister, said the State was in the process of formulating a policy under which some portions of SEZ land would be earmarked for small and medium enterprises.

Hooghly dredging

Later, speaking at an interactive session organised by the Federation of Indian Export Organisations, Mr Pillai said the Commerce Ministry would soon hold meetings with the Secretary of Shipping and the Chairman of Kolkata Port Trust to speed up dredging in the Hooghly river to improve the navigability of shipping channel leading to the port of Kolkata, including Haldia.

Mr Pillai said, he, along with Members of the Customs department, would also hold a meeting with the State Government and other departments concerned in November to accelerate the upgradation work at Petrapole land customs station.

Issues regarding resolving the road blocks in development of the road from Kolkata to Petrapole would also be addressed in the meeting, he added.

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