- Special Economic Zone (SEZ) is a specifically delineated duty
free enclave and is deemed to be a foreign territory for the
purposes of trade operations and duties and tariffs.
- Provides developed infrastructure for export / import in an area.
- Developers of SEZ get duty exemptions and concessions on all
their procurements, whether of goods or services, for the purpose of
development. They also get Income Tax exemptions on the incomes
generated from such SEZs
- Goods and services going into the SEZ area from DTA are treated
as exports and goods coming from the SEZ area into DTA are treated
as if these are being imported.
- SEZ units may be set up for manufacture of goods and rendering of
- SEZ units may export goods and services including agro-products,
partly processed goods, sub-assemblies and components except
prohibited items of exports in ITC (HS). The units may also export
by-products, rejects, waste scrap arising out of the production
process. Export of Special Chemicals, Organisms, Materials,
Equipment and Technologies (SCOMET) shall be subject to fulfillment
of the conditions indicated in the ITC (HS) Classification of Export
and Import Items.
- SEZ unit may import/procure from the DTA without payment of duty
all types of goods and services, including capital goods, whether
new or second hand, required by it for its activities or in
connection therewith, provided they are not prohibited items of
imports in the ITC(HS).
- SEZ unit shall be a positive Net Foreign exchange Earner. Net
Foreign Exchange Earning (NFE) shall be calculated cumulatively for
a period of five years from the commencement of production.
- Applications for setting up a unit in SEZ other than proposals
for setting up of unit in the services sector (except software and
IT enabled services, trading or any other service activity as may be
delegated by the BOA), shall be made to Units Approval Committee as
per procedure indicated in the policy. In other cases approval is
granted by the Board of Approval.
- SEZ unit may sell goods, including by-products, and services in
DTA in accordance with the import policy in force, on payment of
- Foreign investment upto 100% is allowed.
- Income Tax holiday for first 5 years, 50% for the next 5 years,
and 50% of the redeployed profits for the next 5.
We assist the clients looking to develop
SEZs or units in SEZs in preparation of the Project Reports, Preparation of
application for approval from the Board of Approval, notifications,
approvals from Development Commissioners etc.
Since supplies to SEZ are considered as exports, they are eligible for all
the export benefits like Duty Drawback, Advance Authorization, EPCG, etc. We
assist you in assessing the feasibility of the scheme for your purpose,
complete planning etc. Then we assist in carrying out all the formalities,
documentation, application preparations, representation and coordination
with the relevant authorities till receipt of relevant benefits in the form
of approvals, Authorizations or Duty Drawbacks etc.