A. POLICY FRAMEWORK:

• SEZ is a designated duty free enclave and treated as foreign territory for trade operations, duties and tariffs.
• Units can be set up for manufacturing, trading or service activity.
• Supplies from DTA to SEZ units treated as deemed exports. Domestic supplier may claim DEPB in lieu of drawback.
• 100% Income Tax exemption for 5 years and 50% exemption for 2 years thereafter.
• 100% foreign direct investment (FDI) and full and free repatriation of export proceeds permitted.
• SEZ units could dispose of rejects, waste, scrap in domestic market on payment of duties.
• Part of production or production process maybe undertaken in the domestic area including jewellery units. Sub contracting part of production is also permitted.