On November 21, 2023, Commerce Secretary Shri Rajesh Agrawal, IAS, engaged with over 150 industry stakeholders from Export Promotion Council for EOUs & SEZs (EPCES) in Chennai to address key SEZ policy and operational challenges. Representatives from SEZ units and developers raised issues related to SEZ–DTA transactions, duty foregone, ICEGATE connectivity constraints, import monitoring systems, and reverse job work challenges faced by MSMEs. IT/ITES stakeholders raised concerns over rules on vacant built-up area classification, timelines for renewal of Letters of Approval (LoA), and procurement attestation requirements.
Participants highlighted the lack of parity for SEZ units under concessional import duty and duty drawback schemes, operational inefficiencies from the Procurement Certificate process, countervailing duties imposed by the US, and the need to review QCO applicability for SEZ-to-DTA sales, particularly in cases such as KASEZ.
The Commerce Secretary assured that the Ministry would examine each challenge in detail and emphasized the importance of long-term vision and data-driven policymaking. He assured that connectivity concerns with BSNL and issues related to import monitoring systems would be reviewed and the Government's commitment to enhancing the SEZ ecosystem to make it more dynamic, responsive and globally competitive. The Ministry will examine all issues raised and work toward pragmatic solutions to build a more flexible, efficient and globally aligned SEZ framework.
Contact: Abhishek Dayal/ Ishita Biswas. Release ID: 2192600. Visitor Counter: 245.
Key Entities Referenced
Special Economic Zone (SEZ): A geographically delimited area within a country that is given special economic regulations that are different from other areas in the same country.
Export Promotion Council for EOUs & SEZs (EPCES): An industry body that organised an interface for stakeholders to discuss issues related to SEZs.
Domestic Tariff Area (DTA): The part of India which is outside the SEZ.
Ministry of Commerce & Industry: The ministry responsible for formulating and implementing policies related to foreign trade and investment.
Ministry of Commerce & Industry
Commerce Secretary Engages with Industry
Stakeholders to Address Key SEZ Policy and
Operational Challenges
Posted On: 21 NOV 2025 6:01PM by PIB Delhi
An industry interface organised by Export Promotion Council for EOUs & SEZs (EPCES) brought
together over 150 stakeholders for an interaction with Commerce Secretary Shri Rajesh Agrawal, IAS
in Chennai, today. Representatives from Special Economic Zone (SEZ) units and developers
highlighted issues related to Special Economic Zone(SEZ)– Domestic Tariff Area (DTA) transactions,
duty foregone, ICEGATE connectivity constraints, import monitoring systems, and reverse job work
challenges faced by MSMEs. IT/ITES stakeholders raised concerns over rules on vacant built-up area
classification, timelines for renewal of Letters of Approval (LoA), and procurement attestation
requirements that differ from GST norms.
Participants also drew attention to the lack of parity for SEZ units under concessional import duty and
duty drawback schemes available to DTA units, operational inefficiencies introduced by the new
Procurement Certificate process, countervailing duties imposed by the US, and the need to review
QCO applicability for SEZ-to-DTA sales, particularly in cases such as KASEZ.
Responding to the issues, the Commerce Secretary thanked EPCES for enabling direct industry
engagement and assured that the Ministry would examine each challenge in detail with a view to
strengthening ease of doing business. He noted that shifts in global value chains, increased demand
for DTA market access, and the evolving impact of FTAs necessitate SEZ policies that align with
current economic realities.
He emphasised the importance of long-term vision and data-driven policymaking, urging industry to
prepare structured analyses to support reform considerations. He assured stakeholders that
connectivity concerns with BSNL and issues related to import monitoring systems would be
reviewed, reiterating the Government’s commitment to enhancing the SEZ ecosystem to make it more
dynamic, responsive and globally competitive.
He concluded by reaffirming that the Ministry will examine all issues raised and work toward
pragmatic solutions to build a more flexible, efficient and globally aligned SEZ framework.
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Abhishek Dayal/ Ishita Biswas
(Release ID: 2192600) Visitor Counter : 245
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