You are here: Home » PTI Stories » National » News
Business Standard

SEZs urges govt to permit sale of goods in domestic mkt at discounted import duty

Topics
Labor

Press Trust of India  |  New Delhi 

Exporters body for special economic zones EPCES on Sunday urged the commerce ministry to allow units to sell goods at discounted import duty rates in the domestic market as the lockdown and cancellation of orders may impact jobs.

SEZs are treated as foreign territory in terms of customs laws. They are developed as exclusive export zones. Selling of goods by these manufacturing units in the domestic market or outside these zones are treated as imports and therefore the units have to pay full import duty.

"In this crisis time, we have asked the commerce ministry that SEZs may be permitted for sale of their product in domestic market on discounted rate of basic customs duty, at least for one year. This will help them to utilise their capacity and required to save their employees and meet break even," Export Promotion Council for SEZs and EOUs Vice-Chairman Bhuvnesh Seth said.

He said that in the lockdown, the council has also urged for permission to resume work with minimum staff to execute export orders as exporters will loose clients to China or other Asian countries.

Seth said that due to the lockdown and huge cancellation of export orders, "employment retrenchment will be around 50 per cent".

He added that liquidity crunch will not allow the zones to pay salaries for April.

The export oriented units and SEZs are providing direct employment to more than 25 lakh person and has attracted an investments of more than Rs 5.50 lakh crore, he said.

"It has contributed Rs 7.87 lakh crore to India's export basket which is one-third of total national exports," he added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, April 12 2020. 16:34 IST
RECOMMENDED FOR YOU