With an aim to ensure prompt recovery of duty evaded and also to provide deterrent penal provision for willful default, the Parliamentary committee has urged the Centre to establish an effective and reliable oversight mechanism for monitoring actual net foreign exchange earnings (NFE). The panel pointed out the need for a mechanism to safeguard the interest of public revenue with SEZ scheme relies on self-certification for NFEs and as there is no institutional mechanism been established to ensure that there is no mistreat of special economic zone (SEZ) policy.
The committee also noted that the omission of the mandatory requirement of exports undertaking in the SEZ legislation is a major drawback of the Act. It also recommended that the misuse of the scheme must be prevented by revisiting the policy and by filling the loopholes in its implementation. The committee had observed that out of an overall export of Rs 7,149.23 crore made by 22 SEZ units, the actual export is only Rs 1,999.27 crore and the remaining is from selling of products in the domestic markets.
Hence, the finance ministry has urged the SEZs to ensure at least 51% of the production of their goods and services to be exported physically out of India. The panel also suggested a joint mechanism between the commerce and finance ministry to ensure efficient and purposeful execution of the SEZ scheme
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