Special Economic Zone (SEZ) Related Matters
Advisory, Compliance & Operational Support β DGFT EXIM
Special Economic Zones (SEZs) are specifically designated areas within India that operate under distinct economic and regulatory frameworks designed to promote industrial growth, export-oriented production, employment generation, and foreign direct investment (FDI). SEZs offer an enabling business environment through fiscal incentives, infrastructure support, and simplified administrative processes.
π Purpose & Objectives of SEZs
- Promote exports and foreign exchange earnings
- Attract FDI and foster technological innovation
- Generate employment opportunities
- Accelerate industrialization and economic diversification
- Develop world-class infrastructure and logistics hubs
π Regulatory Framework
- Governed by the Special Economic Zones Act, 2005 and corresponding SEZ Rules
- SEZ units benefit from customs duty exemptions, income tax holidays, GST exemptions, and other fiscal incentives
- Simplified labor and operational regulations aimed at promoting investment and ease of doing business
π Key Incentives & Facilities
Customs Duty Exemptions
β Customs Duty Exemptions on imported inputs and capital goods used for export production
Tax Incentives
β Tax Incentives such as income tax holidays for SEZ units registered upto 2020.
Single Window Clearance
β Single Window Clearance System for approvals, licenses, and operational permissions
World-Class Infrastructure
β World-Class Infrastructure: Power, roads, logistics hubs, water supply, waste management, and IT-enabled services
π Operational Features
- SEZs house manufacturing units, service providers, trading firms, and infrastructure developers, all operating under specific regulatory guidelines
- Units must fulfill export obligations, labor compliances, environmental clearances, and routine reporting to SEZ authorities
- Managed by Development Commissioners and Zone Authorities responsible for zone administration and investor facilitation
π Challenges & Opportunities
- πΈ Ensuring consistent infrastructure development and maintenance
- πΈ Maintaining policy stability and transparent regulations to boost investor confidence
- πΈ Advancing skill development initiatives to meet industrial workforce demands
- πΈ Integrating sustainability practices to balance economic growth with environmental responsibility
π How DGFT EXIM Can Assist
At DGFT EXIM, we offer specialized services for SEZ stakeholders, including:
- SEZ unit registration, licensing, and operational approvals
- Advisory on SEZ incentives, duty exemptions, and export benefits
- Support in compliance management, reporting, and regulatory submissions
- Assistance with policy clarifications, representation before SEZ authorities, and dispute resolution