Overview On 21 NOV 2025 , Commerce Secretary Shri Rajesh Agrawal, IAS , engaged with over 150 industry stakeholders in Chennai to address key policy and operational challenges related to Special Economic Zones (SEZs). The industry interface was organized by the Export Promotion Council for EOUs & SEZs (EPCES) . Key Issues Raised SEZ-DTA Transactions and Duty Concerns SEZ – Domestic Tariff Area (DTA) transactions were a major point of discussion. Stakeholders highlighted issues related to duty foregone and duty drawbacks. Connectivity and Import Monitoring ICEGATE connectivity constraints were raised as a significant operational challenge. Concerns were expressed regarding import monitoring systems. MSME Challenges MSMEs face challenges related to reverse job work. IT/ITES Sector Concerns IT/ITES stakeholders raised concerns over rules on vacant built-up area classification. They also discussed timelines for renewal of Letters of Approval (LoA) . Procurement attestation requirements that differ from GST norms were highlighted. Parity and Operational Inefficiencies Participants drew attention to the lack of parity for SEZ units under concessional import duty and duty drawback schemes available to DTA units. Operational inefficiencies introduced by the new Procurement Certificate process were discussed. Trade and Regulatory Issues Countervailing duties imposed by the US were mentioned. The need to review QCO applicability for SEZ-to-DTA sales, particularly in cases such as KASEZ , was emphasized. Government Response The Commerce Secretary thanked EPCES for enabling direct industry engagement and assured that the Ministry would examine each challenge in detail to strengthen ease of doing business. He noted that shifts in global value chains, increased demand for DTA market access, and the evolving impact of FTAs necessitate SEZ policies that align with current economic realities. Commitment to Review and Reform He emphasized the importance of long-term vision and data-driven policymaking, urging industry to prepare structured analyses to support reform considerations. He assured stakeholders that connectivity concerns with BSNL and issues related to import monitoring systems would be reviewed. He reiterated the Government’s commitment to enhancing the SEZ ecosystem to make it more dynamic, responsive, and globally competitive. Conclusion The Commerce Secretary reaffirmed that the Ministry will examine all issues raised and work toward pragmatic solutions to build a more flexible, efficient, and globally aligned SEZ framework.