Special Economic Zones as Growth Engines
Part - A
Special Economic Zones
Special Economic Zones: Special Economic Zones (SEZs) are growth engines that can boost manufacturing, augment exports and generate employment. The private sector has been actively associated with the development of SEZs. The SEZs require special fiscal and regulatory regime in order to impart a hassle free operational regime encompassing the state of the art infrastructure and support services. The proposed legislation on SEZs to be enacted in the near future would cover the concepts of the developer and co-developer, incorporate the provision of virtual SEZs, have fiscal concessions under the Income Tax and Customs Act, provide for Offshore Banking Units (OBUs) etc.
Special Economic Zones schemes in India was conceived by the Commerce and Industries Minister Murosoli Maran during a visit to Special Economic Zones in China in 1999. The scheme was announced at the time of annual review of EXIM Policy effective from 1-4-2000.
Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs.
Under the Special Economic Zone Scheme announced in 2000, 4 existing EPZs were converted into SEZ and 13 new SEZs were given approval (as on 31-03-2002). The Exim Policy 2002-07 has offered several fiscal incentives to units in the SEZs. Other proposals included exemption to SEZ units from External Commercial Borrowings restrictions, and, freedom to make overseas investment and carry out commodity hedging.
Features:
A. Export and Import Goods and services going into the SEZ area from DTA shall be treated as deemed exports and the domestic supplier are eligible for deemed export benefit. Similarly, goods and services coming from the SEZ area into DTA shall be treated as if goods are being imported. The entire production of SEZs units must be exported and D TA sale is permitted only on the payment of full applicable customs
Special Economic Zones
Special Economic Zones: Special Economic Zones (SEZs) are growth engines that can boost manufacturing, augment exports and generate employment. The private sector has been actively associated with the development of SEZs. The SEZs require special fiscal and regulatory regime in order to impart a hassle free operational regime encompassing the state of the art infrastructure and support services. The proposed legislation on SEZs to be enacted in the near future would cover the concepts of the developer and co-developer, incorporate the provision of virtual SEZs, have fiscal concessions under the Income Tax and Customs Act, provide for Offshore Banking Units (OBUs) etc.
Special Economic Zones schemes in India was conceived by the Commerce and Industries Minister Murosoli Maran during a visit to Special Economic Zones in China in 1999. The scheme was announced at the time of annual review of EXIM Policy effective from 1-4-2000.
Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs.
Under the Special Economic Zone Scheme announced in 2000, 4 existing EPZs were converted into SEZ and 13 new SEZs were given approval (as on 31-03-2002). The Exim Policy 2002-07 has offered several fiscal incentives to units in the SEZs. Other proposals included exemption to SEZ units from External Commercial Borrowings restrictions, and, freedom to make overseas investment and carry out commodity hedging.
Features:
A. Export and Import Goods and services going into the SEZ area from DTA shall be treated as deemed exports and the domestic supplier are eligible for deemed export benefit. Similarly, goods and services coming from the SEZ area into DTA shall be treated as if goods are being imported. The entire production of SEZs units must be exported and D TA sale is permitted only on the payment of full applicable customs