Lot of export orders of SEZ units cancelled due to COVID-19 pandemic; govt support needed: EPCES

A lot of export orders of units in special economic zones (SEZs) are cancelled that are lying with them due to the COVID-19 pandemic and the government should consider steps to support the sector, EPCES said on Thursday.

In a letter to Commerce and Industry Minister Piyush Goyal, Export Promotion Council for EOUs and SEZs Vice-Chairman Bhuvnesh Seth has requested that SEZ units should be allowed to sell goods in domestic market on payment of duty in line with export-oriented units (EOUs), that is, equivalent to duty forgone on the raw material used in the manufacture of finished goods sold in the domestic market.

"This will help these units survive in the domestic market. Further, this will also help the SEZ units continue their manufacturing process, utilise their plant and machinery and engage the workforce, which is idle due to this pandemic situation," Seth said.

He said EOUs are permitted to sell their products in DTA (domestic tariff area or domestic market) on payment of duty ..