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9-Dec-2022: Department of Commerce amends SEZ rules to liberalize Work From Home (WFH) for SEZ units

Department of Commerce had further amended SEZ rules to liberalize Work From Home for SEZ units. DoC has amended the Special Economic Zones (SEZ) rules to insert a new rule 43A vide notification dated 14.07.2022 to enable Work From Home (WFH) for SEZ units. Further, DoC had also issued a Standard operating Procedure (SOP) vide Instruction dated 12.08.2022 to streamline the implementation of amended rule across all SEZs.

After notification of Rule 43A and issue of Instruction dated 12.08.2022, DoC received further representations from NASSCOM as well as units seeking further flexibility in WFH facility. The matter was examined in DoC in consultation with stakeholders and accordingly, Rule 43A has been substituted with new rule vide notification no. GSR 868(E) dated 08.12.2022. The salient features of the notification are as under:

  • WFH regime is significantly liberalised based on consultation with all stakeholders.
  • Erstwhile regime based on permissions has been converted into an intimation-based regime.
  • WFH can be provided to upto 100% of all employees of the SEZ unit.
  • WFH permitted upto 31.12.2023.
  • For units already availing WFH under earlier regime, intimation could be sent by email till 31.01.2023.
  • Units seeking WFH in future can email an intimation on or before the date of commencement of WFH.

Hybrid mode of working has become a norm, especially in the IT/ITES sector in the wake of disruptions caused by the pandemic. The representatives of the IT/ITES industry had represented to the (DoC) to enable the units in Special Economic Zones (SEZs) to adopt hybrid mode of working and for providing Work From Home (WFH) facility to the employees SEZ units. The decision has been made after duly noting the genuine needs of the industry and also noting the scope of benefits to economies of Tier-2 and Tier-3 cities that such a facility could entail.

6-Apr-2022: Trade Discussions

Department of Commerce has bilateral institutional mechanism with several countries including its neighboring countries, except with Pakistan, under which discussions on trade, investment and economic issues are held at mutual convenience. Various such bilateral meetings have been held in last four years, in which the trade, investment and economic issues of mutual interest such as strengthening of border trade infrastructure, technical barriers to trade (TBT), sanitary and phytosanitary (SPS) measures, cooperation in customs, facilitation of trade through railways, land and sea ports, harmonization of standards, etc. have been discussed from time to time.  Resolution of these issues and implementation of various projects and programs of mutual interests has yielded positive outcomes which is reflected in India’s increasing total trade with these countries i.e. from USD 112.15 billion in the year 2017-18 to USD 135.77 billion in April 2021- Feb 2022(Provisional).

23-Aug-2018: Department of Commerce Developing National Logistics Portal

A National Logistics Portal is being developed by the Ministry of Commerce and Industry to ensure ease of trading in the international and domestic markets. The portal will link all the stakeholders of EXIM, domestic trade and movement and all trade activities on a single platform.

In this year’s budget speech, Finance Minister had announced that the Department of Commerce will create a portal which will be a single window online market place for trade and will connect business, create opportunities and bring together various ministries, departments and the private sector. Stakeholders like traders, manufacturers, logistics service providers, infrastructure providers, financial services, Government departments and groups and associations will all be on one platform.

India’s logistics sector is highly defragmented and the aim is to reduce the logistics cost from the present 14% of GDP to less than 10% by 2022. India’s logistics sector is very complex with more than 20 government agencies, 40 partnering government agencies (PGAs), 37 export promotion councils, 500 certifications, 10000 commodities, 160 billion market size. It also involves 12 million employment base, 200 shipping agencies, 36 logistic services, 129 ICDs, 168 CFSs, 50 IT ecosystems and banks & insurance agencies. Further, 81 authorities and 500 certificates are required for EXIM.

As per the Economic Survey 2017-18, the Indian logistics sector provides livelihood to more than 22 million people and improving the sector will facilitate 10 % decrease in indirect logistics cost leading to the growth of 5 to 8% in exports. Further, the Survey estimates that the worth of Indian logistics market would be around USD 215 billion in next two years compared to about USD 160 billion currently.

The portal will be implemented in phases and will fulfil the commitment of the Government of India to enhance trade competitiveness, create jobs, boost India’s performance in global rankings and pave the way for India to become a logistics hub.