Distinctive Features of SEZs

DISTINCTIVE FEATURES OF SEZS

1. A designated duty free enclave to be treated as foreign territory for trade operations and duties and tariffs.
2. SEZ units could be for manufacturing, trading or services. SEZ units would be able import capital goods and raw materials duty free.
3. No routine examination of export and import cargo by customs.
4. SEZ units would be required to export the whole of their production. Sale in domestic market on full duty and import policy in force.
5. SEZ units to be positive net foreign exchange earners in three years.
6. SEZ units to maintain accounts in formats of their choice.
7. Duty free goods to be utilized within the approval in formats of their choice.
8. 100% foreign direct investment through automatic route in the manufacturing sector.
9. 100% Income-Tax exemption for five years and 50% for two years thereafter.
10. External commercial borrowing through automatic route.
11. No fixed wastage norms.