An SEZ is a designated duty free enclave to be treated as foreign territory for trade operations and tariffs. Exemptions from customs duty on import of capital goods, raw materials, consumables, spares etc. No import license is required even for second hand machinery.
It provides exemption from excise duty on procurement of capital foods, raw materials, consumable spares, etc from the domestic market.
Income tax exemption - as per Sec 10A of IT act. Graded income tax holiday for 15 years. Carry forward of losses permitted. Write Off of un-realistic export bills up to 50%
100 % FDI through automatic route barring few sectors. No cap on foreign investments for SSI reserved items. Exemptions from industrial licensing requirements for items reserved for SSI.
Facility to retain 100% FE receipts in EEFC a/c, facility to realize and repatriate export proceeds within 12 months. Capitalization of import payables.
Re-export imported goods found defective, goods imported on loan basis etc
Commodity hedging by SEZ units permitted.
Profits allowed to be repatriated freely without any dividend-balancing requirement.
Domestic sales of full duty subject to import policy in force.
No fixed wastage norms, facility available for sub-contracting, contarct farming etc.
Work on behalf of domestic exporters for direct export allowed.
In house customs clearance, No routine examination by customs of exports and imports cargo.