The commerce department and the finance ministry are currently engaged in consultation to allow the sale of products manufactured in Special Economic Zones (SEZs) to the domestic market on a “duty foregone basis” on raw materials, instead of the finished product, a person aware of the matter said.
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At present, SEZs pay full customs duty in case a finished product is sold outside these zones, known as domestic tariff area (DTA). Based on the industry’s longstanding request, the commerce department has proposed to the ministry of finance to calculate the duty on the imported raw material instead.
Read more at: Business Standard
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