Special Economic Zones: duty free imports and authorised export operations governed by SEZ approvals and compliance requirements.

Special Economic Zones are regulated under the SEZ Act and Rules, treating SEZ territory as outside the Customs territory and permitting duty free imports and procurement for authorised export operations. Institutional oversight is provided by a Board of Approval and Unit Approval Committees, with mandatory Customs representation to safeguard revenue. Units operate under a Letter of Approval with specified validity and extension conditions, must meet Net Foreign Exchange performance targets, and are subject to rules on movement, valuation, sub contracting, DTA sale, drawback entitlements, destruction of goods, and exit conditions involving duty payments and possible penalties.

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