Special Economic Zone status treats the area as outside Customs territory, enabling duty free inputs for export production. Special Economic Zones are designated territories treated as outside the Customs territory for authorised operations, so goods and services entering from the domestic tariff area are treated as exports and eligible for tax and duty concessions. The SEZ regime, governed by the SEZ Act and Rules and administered by the Department of Commerce, creates an export focused environment with single window clearance for manufacturing and services, and designation is guided by criteria such as export promotion, investment attraction, employment creation and infrastructure development.