New port SEZ norms to be floated soon
Corporates setting up port-based special economic zones (SEZ) can now heave a sigh of relief as the government will soon come out with a new set of guidelines for handling goods in such regions.
By ET Bureau |
NEW DELHI: Corporates setting up port-based special economic zones (SEZ) can now heave a sigh of relief as the government will soon come out with a new set of guidelines for handling goods in such regions.
The finance and commerce ministries, which have been at loggerheads on setting up of such zones, have finally reached a consensus on dealing with goods originating from the SEZ and the domestic tariff area (DTA). Both sides have decided on the domain earmarked for each other. These have been sent to the Central Board of Excise and Customs for its final approval.
While it has been decided that goods originating from the DTA will be handled by Customs officials, SEZ goods will be handled by the development commissioner of the SEZ. The revenue department has also identified a list of activities which it wants to be earmarked for Customs officials. The finance ministry���s argument has been that its involvement in port-based SEZs is important to check revenue leakage and keep an eye on smuggling activities.
Speaking to ET, government sources said that the clearance was expected soon and would be followed by an official notification.
The revenue department has been against such SEZs and was of the view that ports that handle non-SEZ cargo should not be made part of any SEZ project. It had apprehensions that since a port SEZ cannot be used exclusively to ship products made in the zone, goods produced in DTA could be passed off as SEZ goods to get tax benefits.
It had also cited fulfilment of international obligations with regard to security and other regulations which govern the movement of vessels at ports. At present, the SEZ rules only detail out cargo clearance norms.
The finance and commerce ministries, which have been at loggerheads on setting up of such zones, have finally reached a consensus on dealing with goods originating from the SEZ and the domestic tariff area (DTA). Both sides have decided on the domain earmarked for each other. These have been sent to the Central Board of Excise and Customs for its final approval.
While it has been decided that goods originating from the DTA will be handled by Customs officials, SEZ goods will be handled by the development commissioner of the SEZ. The revenue department has also identified a list of activities which it wants to be earmarked for Customs officials. The finance ministry���s argument has been that its involvement in port-based SEZs is important to check revenue leakage and keep an eye on smuggling activities.
Speaking to ET, government sources said that the clearance was expected soon and would be followed by an official notification.
The revenue department has been against such SEZs and was of the view that ports that handle non-SEZ cargo should not be made part of any SEZ project. It had apprehensions that since a port SEZ cannot be used exclusively to ship products made in the zone, goods produced in DTA could be passed off as SEZ goods to get tax benefits.
It had also cited fulfilment of international obligations with regard to security and other regulations which govern the movement of vessels at ports. At present, the SEZ rules only detail out cargo clearance norms.
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