Special Economic Zone treated as foreign territory; duty free imports for units, DTA clearances taxed at customs equivalent rates. SEZs are treated as foreign territory for customs purposes: supplies from DTA to SEZ are deemed exports and removals from SEZ to DTA are treated as imports. Units may procure/import duty free goods for export production, subject to achieving positive Net Foreign Exchange over five years and maintaining prescribed accounts. Operations follow simplified self certification customs procedures; DTA clearances attract central excise equal to applicable customs duty and valuation under Customs provisions. Debonding, sub contracting, temporary removals, sample clearance and gem/jewellery rules are governed by bonds, time limits and monitoring by a Development Commissioner-Customs committee, with penalties for non compliance.