The government is considering a common framework for export-linked schemes, including special economic zones (SEZs), export-oriented units (EOUs), the Export Promotion Capital Goods (EPCG) scheme, Manufacture and Other Operations in Warehouse Regulations (MOOWR) and Advance Authorisation, in a move aimed at making it easier for businesses to switch between schemes.
The proposed framework seeks to end "scheme shopping" by bringing common rules for areas such as definitions, interest and depreciation benefits. The wider SEZ revamp could also cover duties, job work and rules governing contiguous land, according to sources.
The Commerce Ministry is preparing draft norms in consultation with the Finance Ministry.
Common rules across export schemes
The proposed framework would bring SEZs, EOUs, EPCG, MOOWR and Advance Authorisation under a more common set of rules, with businesses able to switch between schemes more easily.
The move is aimed at addressing "scheme shopping", under which businesses choose between schemes based on differences in their rules and benefits.
The government is also considering uniform provisions for definitions, interest and depreciation benefits.
Wider SEZ changes under consideration
The government is separately working on a broader revamp of the SEZ framework. The changes could cover duties, job work and rules on contiguous land, the sources said.
The Commerce Ministry is preparing the draft norms in consultation with the Finance Ministry.
A Cabinet note on the "definition of services" under SEZ rules is also under consultation, according to the sources.
Rupee payments for SEZ units
SEZs may also soon be allowed to receive rupee payments from domestic clients, the sources said.
The change could benefit defence, maintenance, repair and overhaul (MRO), engineering and information technology companies operating from SEZs by making payments from domestic clients easier.
The proposed changes are part of the government's broader effort to simplify rules across export-linked schemes and SEZs.
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