Introduction

Special Economic Zone status: SEZs deemed outside customs territory, enabling tax free export treatment and incentives.

SEZs provide a tax and duty free, export oriented environment with integrated infrastructure and incentives, governed by the SEZ Act, 2005 and SEZ Rules, 2006 and administered by the Department of Commerce. The Central Government must consider criteria such as export promotion, investment attraction, employment and infrastructure when notifying SEZs. SEZs may be multi product, sector specific, or Free Trade and Warehousing Zones and, under Section 53, are deemed outside the Customs territory of India for authorized operations; supplies from the domestic tariff area to SEZs are treated as exports.