About SEZ

• A Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than a country’s domestic economic laws.
• The main objectives of the SEZ Scheme is 
  • generation of additional economic activity, 
  • promotion of exports of goods and services, 
  • promotion of investment from domestic and foreign sources, 
  • creation of employment opportunities along with the development of infrastructure facilities. 
• Financial incentives are granted to those setting up SEZs and cover a wider gamut of benefits for investors across taxation, customs, labour regulations, etc. 
• Each Zone is headed by a Development Commissioner and is administered as per the SEZ Act, 2005 and SEZ Rules, 2006. 
• It should be noted that all Goods and services supplied by SEZ units to Domestic Tariff Area (whole of India but does not include the areas of the SEZ) are treated as imports into India and subject to all procedures and rules applicable in case of normal imports into India.

Salient Features

• The salient features of the SEZ scheme are:-

• • A designated duty free enclave to be treated as a territory outside the customs territory of India for the purpose of authorised operations in the SEZ;

• No licence required for import;

• • Manufacturing or service activities allowed;
  • The Unit shall achieve Positive Net Foreign Exchange to be calculated cumulatively for a period of five years from the commencement of production;

• Domestic sales are subject to full customs duty and import policy in force; 

• SEZ units will have freedom for subcontracting;
• No routine examination by customs authorities of export/import cargo;
• SEZ Developers /Co-Developers and Units enjoy tax benefits as prescribed in the SEZs Act, 2005.