Port SEZs all set to sail through

NEW DELHI: The uncertainty over fate of port-based special economic zones (SEZs) is set to end soon. The commerce department and the finance ministry are close to sealing an agreement on handling of goods in such zones. The new guidelines demarcating responsibilities between the two departments were approved at a recent meeting of the CBEC. The final decision on the matter will be taken by finance minister P Chidambaram and the guidelines are to be notified as soon as he clears them.

This will allow the Board of Approval to give a green signal to port-based SEZs like Adani group���s multi-product SEZ in the Mundra port which has already been given a formal approval by the government, but is yet to be notified.

According to the broad agreement, the commerce department will clear goods originating from SEZs, while the Customs will clear goods originating from domestic tariff area (DTA). The mechanism through which SEZ goods will be separated from DTA goods has also been agreed upon. The statutory activities for Customs formation including ones to check smuggling will also be handled by Customs department.

���The full board of the CBEC has approved the guidelines separating the activities of the commerce and revenue departments. We are hoping that the FM will give his nod to the proposal soon,��� an official said.

Initially, the commerce department was supposed to look after the administration of all SEZs, but the finance ministry had argued it needed to be involved in port-based SEZs as it was important to check revenue leakage and keep an eye on smuggling.

After hesitating for some time, the commerce department gave in to their demand. It was, however, a complicated process to divide the administration of the zone between the two departments as both wanted to have more control.