Special Economic Zone Special Economic Zone Special Economic Zone Special Economic Zone
Special Economic Zone Special Economic Zone Special Economic Zone Special Economic Zone
Special Economic Zone Special Economic Zone Special Economic Zone Special Economic Zone
History
The world first known instance of SEZ have been found in an industrial park set up in Puerto Rico in 1947. In the 1960s, Ireland and Taiwan followed suit, but in the 1980s China made the SEZs gain global currency with its largest SEZ being the metropolis of Shenzhen. From 1965 onwards, India experimented with the concept of such units in the form of Export Processing Zones (EPZ). But a revolution came in 2000, when Murlisone Maran, then Commerce Minister, made a tour to the southern provinces of China. After returning from the visit, he incorporated the SEZs into the Exim Policy of India. Five year later, SEZ Act (2005) was also introduced.Only units approved under SEZ scheme would be permitted to be located in SEZ.
SEZ : Introduction
A Special Economic Zone in short SEZ is a geographically bound zones where the economic laws in matters related to export and import are more broadminded and liberal as compared to rest parts of the country. SEZs are projected as duty free area for the purpose of trade, operations, duty and tariffs. SEZ units are self-contained and integrated having their own infrastructure and services. SEZ units may be set-up for the manufacture of goods and other activities including processing, assembling, trading, repairing, reconditioning, making of gold/silver, platinum jewellery etc. and support services. SEZ units are deemed to be outside customs territory of India
Objectives
Generation of additional economic activity. Promotion of exports of goods and services. Promotion of investment from domestic and foreign sources. Creation of employment opportunities. Development of infrastructure facilities.
Figure 1: Approval mechanism for the establishment of an SEZ for a private developer
Figure 2: Approval mechanism for the establishment of an SEZ for the central and state government as a developer
CST Nil against I Form Excise Duty Nil against ARE 1 Form
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