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Government plans to review export provision in SEZ Act

Government plans to review export provision in SEZ Act

KHATMANDU: The government is preparing to review the provision in the SEZ Act that requires factories established inside any SEZ to mandatorily export 75 per cent of their production. he Ministry of Industry (MoI) and Special Economic Zone (SEZ) Authority, Nepal are currently holding discussions to narrow down the minimum export limit for industries within SEZ after the country’s private sector expressed difficulties for industries in SEZ to abruptly start exporting 75 per cent of their production.

However, the government is yet undecided on the new minimum export limit for factories inside SEZ. “There is no doubt that SEZ envisions to promote the country’s exports and factories within SEZ should export a majority of their produce. However, along with concerns of the private sector to narrow down minimum export limit the government has also realised that factories inside SEZ should be allowed to increase export gradually,” said Chandika Bhatta, executive director of SEZ Authority, Nepal. Similarly, the government also plans to review the land rent for factories inside Bhairahawa SEZ— the maiden and only SEZ of the country.  “We have felt that the land rent for factories at Bhairahawa SEZ is comparatively higher as compared to international practices,” said Bhatta. Currently, the government is charging Rs 20 per square metre per month from factories inside Bhairahawa SEZ. Meanwhile, Industry Secretary Yam Kumari Khatiwada said that the government is preparing to review all acts and policies related to the industrial sector in line with the new federal structure.