Indian Special Economic Zone (SEZ) - Salient Features and Facilities

-family: Georgia, 'Times New Roman', Times, serif; color: #000066; font-size: xx-small;">» No license required for import. 

» Exemption from customs duty on import of capital goods, raw materials, consumables, spares etc. 

» Exemption from Central Excise duty on procurement of capital goods, raw materials, consumable spares etc. from the domestic market. 

» Supplies from DTA to SEZ units treated as deemed exports. 

» Reimbursement of Central Sales Tax paid on domestic purchases. 

»100% income tax exemption for a block of five years,50% tax exemptions for two years and upto 50% of the Profits ploughed back for next 3 years under section 10-A of Income tax Act.

»Supplies from DTA to SEZ to be treated as exports under 80HHC of the IT Act.

»carry forward of losses

»100% Income-tax exemption for 3 years & 50% for 2 years under section 80-LA of the Income-tax Act for off-shore banking units.

» Reimbursement of duty paid on furnace oil, procured from domestic oil companies to SEZ units as per the rate of Drawback notified by the Directorate General of Foreign Trade. 

» SEZ units may be for manufacturing, trading or service activity. 

» SEZ unit to be positive net foreign exchange earner within three years. 

» Performance of the units to be monitored by a Committee headed by Development Commissioner and consisting of Customs. 

» 100% Foreign Direct Investment in manufacturing, sector allowed through automatic route barring a few sectors. 

» Facility to retain 100% foreign exchange receipts in EEFC Account. 

» Facility to realize and repatriate export proceeds within 12 months.

» Re-export imported goods found defective, goods imported from foreign suppliers on loan basis etc. without G.R. Waiver under intimation to the Development Commissioner.

» "Write-off" of unrealised export bills upto 5%.

» Commodity hedging by SEZ units permitted

» Capitilization of import payables

» No cap on foreign investment for SSI reserved items.

» Exemption from industrial licensing requirement for items reserved for SSI sector.

» Profits allowed to be repatriated freely without any dividend balancing requirement.

» Domestic Sales on full duty subject to import policy in force. 

» No fixed wastage norms.

» Full freedom for subcontracting including subcontracting abroad. 

» Subcontracting facility available to jewellery units 

» Duty free goods to be utilized in 5 years. 

» Job work on behalf of domestic exporters for direct export allowed. 

» No routine examination by Customs of export and import cargo. 

» No separate documentation required for customs and Exim Policy. 

» In house customs Clearance. 

» Support services like banking, post office clearing agents etc. provided in Zone Complex.

» Developed plots and ready to use built up space 

» Exemption from Custom/Excise Duty on goods for setting up units in the zone.


For details please see chapter 7 of Export and Import Policy and chapter 7 Handbook of Procedure.