The woes of special economic zones (SEZ) just don’t seem to end. Fresh trouble has now broken out with the revenue department seeking clarity on provision in the SEZ Act that makes these zones deemed to be outside Customs territory. The matter has been referred to department of legal affairs for a detailed examination, sources said. The issue comes close on the heels of some states writing to the Centre about exemption on stamp duty provided in the SEZ Act. As per the provisions in the Act, since the territory is deemed to be outside the Customs, adjudication, appeal and enforcement provisions in the Customs Act will not apply. This means that if there is illegal import or export of any banned substance –– such as narcotics, explosives or tiger skins –– Customs department will be unable to tackle as it would not be authorised to open the containers. And this would be the case with not just personnel outside the zone but also inside the zone.
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