"Features of Special Economic Zones(SEZ)"

                           

                         With a ciew to enable hassle free export activity, Special Economic Zone are being set up. The units in these zones shall not be subjected to any pre-determined value addition, export obligation and input/output wastage norms. Sale in domestic tariff area by the units in such zones will be permitted on payment of full customs duty. Such SEZs has been selected, one each in Gujarat and Tamil Nadu. The existing EPZs are also being converted in SEZs.

Features :-

1.  Domestic Sales/Purchases :- 
                               Goods going in to the SEX areas from DTA (Domastic Tariff Area) shall be treated as deemed exports and goods coming from the SEZ area into DTA shall be treated as if the goods are being imported.
   
2. Export and Import of Goods :-
                             SEZ units may export goods and services including agro-products, partly processed jewellery, sub-assemblies ad components. It may also export by-producs, rejects, waste-scrap arising out of the production process.    
                         
3. Net Foreign Exchange Earning (NFE) :-
                             A SEZ unit shall be a positive net foreign exchange earner. NFE shall be calculated cumulatively for a period of five years from the commencement of commercial production.            
   
4. Domestic Tariff Area (DTA) Sales & Supplies :-
                             Sales to SEZs from DTA are to be treated as exports. Sales to DTA from SEZ are to be exempted from special additional duty (SAD) from SEZ 4% cheaper than imports. DTA sale by service/trading units shall be subject to achievement of positive NFE.
   
5. Export through Status Holder :-
                             A SEZ unit may also export goods manufactured by it through a merchant exporter / status holder or any other EOU / EPZ / SEZ unit.
   
6. Inter-limit Transfer :-
                             Transfer of manufactured goods or imported goods from one SEZ unit to another EPZ / EOU / SEZ unit is allowed, but not counted towards export performance.
   
7. Administration and Setting up of SEZ :-
                              SEZ will be under the administrative control of Development Commissioner. A SEZ may be set up in the public, private or joint sector. The existing EPZs may also be converted into SEZ by the Ministry of Commerce and Industry.
   
8. Export Proceeds :-
                              Units in SEZ can bring back their export proceeds in 360 days as against normal period of 180 days and can retain 100% of the proceeds in the EEFC Account.