No Export o b l i g a ti o n burden on SEZs

The Government is likely to put on hold its plan of placing an export obligation on units operating in SEZs. As per SEZ rules, units in SEZs have to be only net foreign exchange earners. This means that a unit’s exports should be more than its imports.

• The commerce department has argued that an export obligation should be imposed only if the SEZs were found to be selling mostly domestically. 
• The whole idea behind not imposing an export obligation was to give units the flexibility to settle down in business before starting exports.
• The commerce department has said that if in any year, it was found that exports from SEZs have dipped beyond a certain point; Govt. could consider imposing export obligation.