<h1>India's SEZ Policy: Duty-Free Zones with Tax Incentives, No Import Licenses, and Customs Exemptions under SEZ Act 2005.</h1> The Special Economic Zones (SEZ) policy, initiated in April 2000, was formalized with the SEZ Act of 2005 and the SEZ Rules of 2006. Key features include duty-free enclaves treated as territories outside India's customs area, no import licenses, and permitted manufacturing and service activities. Units must achieve positive net foreign exchange over five years, with domestic sales subject to customs duties. SEZ units can subcontract freely, and export/import cargo is exempt from routine customs checks. Developers and units benefit from tax incentives under the SEZ Act. This information was provided by a government official in a parliamentary session.