Professional Documents
Culture Documents
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SEZ AND WORLD TRADE
SEZ exports in 2000 : 850 billion
• China : 45%
• Indonesia : 10%
• Philippines : 57%
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ROLE OF SEZS IN INDIAN ECONOMY
• to provide internationally competitive
environment
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OUR APPROACH
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OUR APPROACH (contd.)
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LEGAL AND POLICY FRAMEWORK-
AN UPDATE
• Developer of SEZ
• Units in SEZs
• DTA supplier
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DEVELOPER OF SEZ
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FACILITIES NOTIFIED FOR
DEVELOPERS OF SEZs
• 100% FDI allowed for:
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FACILITIES NOTIFIED FOR
DEVELOPERS OF SEZs (Contd)
• Duty free import/domestic procurement of
goods for development, operation and
maintenance of SEZs
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FACILITIES NOTIFIED FOR
DEVELOPERS OF SEZs (Contd)
• Income of infrastructure capital fund/co.
from investment in SEZ exempt from Income
Tax
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FACILITIES NOTIFIED FOR
DEVELOPERS OF SEZs (Contd)
• Guidelines issued on generation, transmission and
distribution of power in SEZs
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UNITS IN A SEZ
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FACILITIES NOTIFIED FOR
SEZ UNITS
• No license required for import.
• In addition to manufacturing, trading
and services also allowed.
• Freedom to subcontract.
• Single window approval by
Development Commissioner of the
zone.
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FACILITIES NOTIFIED FOR
SEZ UNITS (Contd.)
• No license needed to manufacture items
reserved for SSI sector
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FACILITIES NOTIFIED FOR
SEZ UNITS (Contd.)
Under FEMA
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FACILITIES NOTIFIED FOR
SEZ UNITS (Contd.)
Customs and Excise :
• Duty free import or domestic
procurement of goods for development,
operation and maintenance of SEZ units.
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FACILITIES NOTIFIED FOR
SEZ UNITS (Contd.)
Income Tax Act:
• 100% IT exemption (10A) for first 5 years,
50% for 2 years thereafter and 50% of
reinvestment for 3 years
• Permitted to carry forward losses
• Offshore Banking Units allowed to have full
IT exemption for 3 years and 50% for next
two years.
Service Tax:
• Exemption from Service Tax to SEZ units.
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FACILITIES NOTIFIED FOR
SEZ UNITS (Contd.)
Environment
• Permitted facilities like golf
courses, de-salination plants,
hotels and non-polluting service
industries in the Coastal
Regulation Zone area
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FACILITIES NOTIFIED FOR
SEZ UNITS (Contd.)
Drugs and Cosmetics :
• Exemption from port restriction
under Drugs & Cosmetics Rules
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FACILITIES NOTIFIED FOR
SEZ UNITS (Contd.)
Companies Act :
• SEZ to have Regional office of Registrar of
Companies.
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FACILITIES NOTIFIED FOR
DTA SUPPLIER
Supplies from Domestic Tariff Area
(DTA) to SEZ to be treated as physical
export under IT, Customs and CST Act
DTA supplier entitled to :
• Drawback/DEPB
• CST Exemption
• Exemption from State levies
• Discharge of its EP
• IT exemption u/s 80HHC
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PROGRESS – STATE POLICY
• AP ,UP, Maharashtra, Madhya Pradesh, Gujarat ,
Karnataka , Rajasthan and TN announced SEZ
Policy.
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FEATURES OF STATE SEZ POLICY:
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FEATURE OF STATE SEZ POLICY
(Contd.)
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COMMITMENTS FOR THE
IMMEDIATE FUTURE
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GOVERNMENT OF INDIA
• Enactment of Central SEZ Act
• Exemption of the SEZs from restrictive labour laws
• Facilitation of external infrastructure needs
• Special emphasis on sector specific and port based
SEZs
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PROGRESS-PHYSICAL
All 8 EPZs converted into SEZs :-
• Navi-Mumbai (Maharashtra)
• Sitapura (Jaipur)
• Positra (Gujarat)
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15 SEZ approved in principle:
• Maha-Mumbai ( Maharashtra )
• Vallarpadam/Puthuvypeen (Kerala)
• Moradabad (U.P.)
• Jodhpur(Rajasthan)
• Nangunery ( T N)
• Paradeep & Gopalpur (Orissa)
• Kulpi and Salt Lake (W B)
• Bhadohi, Kanpur, Greater NOIDA
• Visakhapatnam and Kakinada, (A P)
• Hassan ( Karnataka)
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FOR DETAILS VISIT
WWW.SEZINDIA.NIC.IN
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THANK YOU
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