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Facilities
and Incentives |
Facilities in Special Economic Zone | A
new Special Economic Zone (SEZ) scheme has been introduced in the Export &
Import Policy from 1/4/2000, with a view to provide an internationally competitive
and hassle free environment for export production.
| | Indian
SEZ - Salient Features and Facilities |
v
A
designated duty free enclave and to be treated as foreign territory for trade operations
and duties and tariffs.
v No
licence required for import.
v
Exemption
from customs duty on import of capital goods, raw materials,consumables, spares
etc.
v Exemption
from Central Excise duty on procurement of capital goods, raw materials,
consumable spares etc. from the domestic market.
v Supplies
from DTA to SEZ units treated as deemed exports.
v Reimbursement
of Central Sales Tax paid on domestic purchases.
v100%
income tax exmption for a block of five years and 50% tax exmeptions for two year
there after under section 10-A
of Income tax Act.
v
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.
v SEZ
units may be for manufacturing, trading or service activity.
v SEZ
unit to be positive net foreign exchange earner within three years.
v Performance
of the units to be monitored by a Committee headed by Development Commissioner
and consisting of Customs.
v 100%
Foreign Direct Investment in manufacturing, sector allowed through automatic
route barring a few sectors.
v
Facility
to retain 100% foreign exchange
receipts in EEFC Account.
v Facility
to realize and repatriate export proceeds within 12 months.
v 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.
v
"Write-off"
of unrealised export bills as per RBI
circular dated 9-02-2002.
v No
cap on foreign investment for SSI reserved items.
v
Exemption
from industrial licensing
requirement for items reserved for SSI sector.
v Profits
allowed to be repatriated freely without any dividend balancing requirement.
v Domestic
Sales on full duty subject to import policy in force.
v No
fixed wastage norms.
v Full
freedom for subcontracting including subcontracting abroad.
v Subcontracting
facility available to jewellery units
v Duty
free goods to be utilized in 5 years.
v
Job work
on behalf of domestic exporters for direct export allowed.
v No
routine examination by Customs of export and import cargo.
v Support
services like banking, post office clearing agents etc. provided in Zone Complex.
v Developed
plots and ready to use built up space
v Exemption
from Custom/Excise Duty on goods for setting up units in the zone.
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