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of <h1>Understanding India's SEZ Scheme: Tax-Free Zones for Export Growth Under SEZ Act, 2005 & Rules, 2006</h1> The Special Economic Zones (SEZ) scheme, initiated in April 2000, aims to create a competitive environment for exports by offering tax-free goods and services, streamlined approvals, and incentives to attract investments. Governed by the SEZ Act, 2005, and SEZ Rules, 2006, SEZs are deemed outside India's customs territory. SEZs can be established by various entities and are subject to approvals by the Board of Approval and Unit Approval Committees. They must achieve positive Net Foreign Exchange Earnings and comply with import, export, and operational regulations. Units can exit SEZs with necessary approvals and must adhere to guidelines for duty remission, sub-contracting, and domestic sales.
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