Policy related

• A designated duty free enclave and to be treated as foreign territory for trade operations and duties and tariffs.
• No license required for import
• SEZ units may be for manufacturing, trading or service activity.
• SEZ unit to be positive net foreign exchange earner within three years.
• Performance of the units to be monitored by a Committee headed by Development Commissioner and consisting of Customs.
• 100% Foreign Direct Investment in manufacturing, sector allowed through automatic route barring a few sectors.

Duties related concessions

• Exemption from customs duty on import of capital goods, raw materials, consumables, spares etc.
• Exemption from Central Excise duty on procurement of capital goods, raw materials, consumable spares etc. from the domestic market.
• Supplies from DTA to SEZ units treated as deemed exports.
• Reimbursement of duty paid on furnace oil, procured from domestic oil companies to SEZ units as per the rate of drawback notified by the Directorate General of Foreign Trade.
  

Concessions under various taxes

• Reimbursement of Central Sales Tax paid on domestic purchases.
• 100% income tax exemption for a block of five years,50% tax exemptions for two years and up to 50% of the Profits ploughed back for next 3 years under section 10-A of Income tax Act.
• Supplies from DTA to SEZ to be treated as exports under 80HHC of the IT Act.
• Carry forward of losses100% Income-tax exemption for 3 years & 50% for 2 years under section 80-LA of the Income-tax Act for offshore banking units.
• Exemption from Service Tax /CST.

Facilities with regard to foreign exchange and dividend

• Facility to retain 100% foreign exchange receipts in EEFC Account.
• Facility to realize and repatriate export proceeds within 12 months.
• Write-off of unrealized exports bills up to 5%.
• Capitalization of import payables
• Profits allowed to be repatriated freely without any dividend-balancing requirement.

Companies Act

• Enhanced limit of Rs. 2.4 crores per annum allowed for managerial remuneration
• Agreement to opening of Regional office of Registrar of Companies in SEZs.
• Exemption from requirement of domicile in India for 12 months prior to appointment as Director.
  

Customs related

• Domestic Sales on full duty subject to import policy in force.
• Job work on behalf of domestic exporters for direct export allowed.
• No routine examination by Customs of export and import cargo.
• No separate documentation required for customs and Exim Policy.
• In house customs Clearance.
• Support services like banking, post office clearing agents etc. provided in Zone Complex.
• Commodity hedging by SEZ units permitted
• Exemption from Custom/Excise Duty on goods for setting up units in the zone.

Other incentives

• No foreign Investment cp for SSI reserved items.
• Full freedom for subcontracting including subcontracting abroad.
• Subcontracting facility available to jewellery units
• Duty free goods to be utilized in 5 years.
• Developed plots and ready to use built up space
• External commercial borrowings by units up to $ 500 million a year allowed without any maturity restrictions For details please see guidelines issued by RBI (F.No. 4(2)/2002-ECB, dated 15.9.2002).