J Matadee Free Trade Zone calls for policy amendments

Chennai, Feb 25 (): J Matadee Free Trade Zone Pvt Ltdon Tuesday said duty tariffs must be levied based on 'DutyForegone Principle' as it would enable high manufacturingefficiencies.Though special economic zones were treated as foreignterritory for the purpose of law, supply of goods manufacturedby SEZs to domestic tariff area customers was subjected tofull tariff, including local content value additions, chairmanof J Matadee Free Trade Zone Sunil Rallan said in a pressstatement here. Duty must be levied based on 'Duty Foregone Principle', itsaid. "This will enable very high manufacturing efficiencies tobe achieved if new units can achieve economies of scale withaccess to both Indian markets as well as exports," he wasquoted as saying in the statement. Noting that Domestic Tariff Area (DTA) customers makepayments for their imports through regular banking channels,he said, "The same products are not encouraged for supply bySEZ units to DTA customers". "The payments made by DTA customers are not considered asbeing compliant with SEZ rules. This defeats the Make in Indiapolicy as imports are being encouraged over Indianmanufacturing," he said. India has signed Free trade agreements with countries likeSri Lanka, Japan, South Korea, and ASEAN (Association ofSouth-East Asian Nations). "For many of the FTA partner countries, India exempts orallows concessional rate of customs duties on listedproducts", he said. VIJNVG NVG
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