Draft report on SEZ Act finalised

NEW DELHI: The commerce department has finalised the draft of the much awaited Act for special economic zones (SEZs), which will provide a comprehensive package to boost exports through this medium-term tool.
The incentives proposed in the package include exemption from the mandatory provisions of the Insurance, Banking and Sick Industries Act. The draft of the Special Economic Zone Bill 2002 contains provisions to treat units located in the zones as ‘units located in foreign territory’ in so far as import, export and foreign exchange regulations are concerned. The draft has been circulated to various ministries and departments. Once it obtains Cabinet approval, it would be tabled in Parliament, sources in the department said. Since provisions related to SEZ are governed by different laws, the government wants to put together all provisions under one Act. Therefore, the SEZ Bill 2002 seeks “to provide for the establishment, development, operation, maintenance, management and administration of SEZs.� The bill contains provisions to exempt SEZ units from levy of central taxes. Goods sold from these zones to the domestic tariff area would be regarded as imports.