faqs about sez

8/13/2019 Faqs About Sez

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FAQS ABOUT SPECIAL ECONOMIC ZONE

1 What is a Special Econoic Zone !

Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to

be foreign territory for the purposes of trade operations and duties and tariffs.

2Whe"e in In#ia SEZs a"e locate# !

At present there eight functional Special Economic Zones located at Santa Cruz (aharashtra)!Cochin ("erala)! "andla and Surat (#u$arat)! Chennai (%amil &adu)! 'isahapatnam (Andhra

radesh)! *alta (+est ,engal) and &odia (-ttar radesh) in ndia. *urther a Special Economic Zoneat ndore ( adhya radesh ) os no/ ready for operation.

n addition 01 approvals have been given for setting up of SEZ at ositra (#u$arat)! &avi umbaiand "opata (aharashtra)! &anguneri (%amil &adu)! "ulpi and Salt ae (+est ,engal)! aradeepand #opalpur (3rissa)! ,hadohi! "anpur! oradabad and #reater &oida (-..)! 'ishahapatnam

and "ainada (Andhra radesh)! 'allarpadam4uthuvypeen ("erala) 5assan ( "arnataa)! 6aipur

and 6odhpur ( 7a$asthan) on the basis of proposals received from the State #overnments.

8. Who can set $p SEZs!

Any private4public4$oint sector or State #overnment or its agencies can set up Special EconomicZone (SEZ).

%&Can Fo"ei'n Copanies set $p SEZs !

9es

(& )o* can one appl+ ,o" settin' $p o, SEZs !

0: copies of application! indicating name and address of the applicant! status of the promoter along

/ith a pro$ect report covering the follo/ing particulars may be submitted to the Chief Secretary ofthe State;

ocation of the proposed Zone /ith details of eetails of foreign e?uity and repatriation of dividends etc.! if any

+hether the Zone /ill allo/ only certain specific industries or /ill be a multi@product Zone.

%he State #overnment shall! for/ard it along /ith their commitment to the follo/ing to the>epartment of Commerce! #overnment of ndia;

%hat area incorporated in the proposed Special Economic Zone is free from environmental

restrictions=

%hat /ater! electricity and other services /ould be provided as re?uired=


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%hat the units /ould be given full eomestic %ariff Area to SEZ units=

%hat for units inside the Zone! the po/ers under the ndustrial >isputes Act and otherrelated labour Acts /ould be delegated to the >evelopment Commissioner and that the units

/ill be declared as a ublic -tility Service under ndustrial >isputes Act.

%hat single point clearances system and minimum inspections re?uirement under State

a/s47ules /ould be provided.

%he proposal incorporating the commitments of the State #overnment /ill be considered by an

nter@inisterial Committee in the >epartment of Commerce. 3n acceptance of the proposal! aletter of permission /ill be issued to the applicant.

. Are there any terms B conditions for setting up of SEZ 3nly units approved under SEZ scheme /ould be permitted to be located in SEZ.

%he SEZ units shall abide by local la/s! rules! regulations or bye@la/s in regard to area planning!se/erage disposal! pollution control and the lie. %hey shall also comply /ith industrial and labourla/s as may be locally applicable.

Such SEZ shall mae security arrangements to fulfill all the re?uirements of the la/s! rules and

procedures applicable to such SEZ.

%he SEZ should have a minimum area of 0DDD hectares and at least 2: of the area is to be

earmared for developing industrial area for setting up of units.

inimum area of 0DDD hectares /ill not be applicable to product specific and port4airport based

SEZs.

+herever the SEZs are landloced! an nland Container >epot (C>) /ill be an integral part ofSEZs.

>etailed guidelines on setting up of SEZ in the rivate46oint4State Sector is given in Appendi< 0F@

.& of 5andboo of rocedures 'olume .

-& What is "ole o, State .o/e"nents!

State #overnments /ill have a very important role to play in the establishment of SEZ.7epresentative of the State #overnment! /ho is a member of the nter@inisterial Committee on

private SEZ! is consulted /hile considering the proposal. ,efore recommending any proposals tothe inistry of Commerce B ndustry (>epartment of Commerce)! the States must satisfy

themselves that they are in a position to supply basic inputs lie /ater! electricity! etc.

0& What a"e the ,acilities Incenti/e Facilities to SEZ 2e/elope" !

0DD *> allo/ed for;(a) to/nships /ith residential! educational and recreational facilities on a case to case basis!

(b)franchise for basic telephone service in SEZ.

ncome %a< benefit under ( 1D A ) to developers for any bloc of 0D years in 0: years.

>uty free import4domestic procurement of goods for development! operation and

maintenance of SEZs

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Incoe ta7 8

hysical e


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Agreement to opening of 7egional office of 7egistrar of Companies in SEZs.Eirector.

2"$'s an# Cosetics 8

Erugs B Cosmetics 7ules.

S$5:Cont"actin'Cont"act Fa"in' 8

SEZ units may sub@contract part of production or production process through units in the >omestic

%raiff Area or through other E3-4SEZ unitsSEZ units may also sub@contract part of their production process abroad.

Agriculture45orticulture processing SEZ units allo/ed to provide inputs and e?uipments to contractfarmers in >%A to promote production of goods as per the re?uirement of importing countries.

1;&Whethe" SEZs ha/e 5een e7epte# ,"o La5o$" la*s!

&ormal abour a/s are applicable to SEZs! /hich are enforced by the respective state#overnments. %he state #overnment has been re?uested to simplify the procedures4returns and for

introduction of a single /indo/ clearance mechanism by delegating appropriate po/ers to>evelopment Commissioners of SEZs.

1%&What a"e the ,acilities ,o" 2oestic s$pplie"s to Special Econoic Zone

Supplies from >omestic %ariff Area (>%A) to SEZ to be treated as physical e%A supplier

/ould be entitled to ;

>ra/bac4>E,

CS% Eone!

%he units /ould be entitled for a pacage of ncentives and a simplified operating environment

10& What a5o$t the Licenses ,o" Ipo"ts!

&o icense is re?uired for imports! including second hand machineries.


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13&I, one 5$+ 'oo#s ,"o 2TA sho$l# the+ "e?$i"e to pa+ State Sales Ta7 an# E7cise!

&o. State has e%A to SEZ from local levies and ta

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