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Special economic zones to have total operational flexibility

EXIM POLICY

The proposed special economic zones, or SEZs, to be established in the country will have full flexibility of operations including duty-free import of capital goods and raw materials, and access from the domestic tariff area, or DTA, without payment of terminal export duty.

Commerce Minister Murasoli Maran said here today that these zones, which had come up in China, would require no permission for inter unit sales or transfer of goods. "There would be no wastage norms or input output norms,'' he said.

There was also a proposal to convert existing export processing zones into SEZs though areas of the zones were limited due to historic reasons. The EPZs in Kandla, Vizag and Cochin are proposed to be converted into SEZs.

These units would be able to undertake job work for DTA units and get their goods processed in the DTA. The only condition attached would be that the units in the zone would have to export the entire production and that DTA sales would be permitted only on payment of full applicable customs duties and additional duties without any concession.

The movement of goods from and to ports from SEZ would be unrestricted and without hindrances. Any state government or corporate entity or individual can furnish proposals for setting up such zones. Gujarat and Tamil Nadu were the only states that had sent the proposals.

Gujarat had proposed to provide 880 hectares of land at Positra, while Tamil Nadu had proposed the zone that was 1,012 hectares at Nangunery. These would be the first SEZs, which may become operational soon.

Maran said he would like to create a healthy competition among the states and union territories and declare large areas as SEZs and offer special facilities in such zones. The government expected that the smallest SEZ should be more than 400 to 500 hectares.

UNI

Exim Policy 2000-2001 on rediff.com

The Exim Policy Document

Exim Policy 1999-2000 on rediff.com

Web site of the Ministry of Commerce and Industry

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