SEZ UNITS/ SEZ APPROVAL

The Chinese experiment of SEZ revolutionised the production process in the world and China which was no where suddenly became the international manufacturing hub due to its facilities to the SEZ units.

India passed the SEZ Act in 2005 and more than 300 SEZ were approved which were supposed to be duty free enclave along with the allotment of Industrial Sheds/ land under no profit and no loss basis firstly under Govt Control and later on even private SEZ started coming into being.

The SEZ concept also revolutionised the industrial production in India, sudden spurt of service and I.T export from India filled our foreign exchange reserves Unexpectedly and in service export India even left behind China because Indian spoke English better than Chinese.

The Call centres,BPO, KPO, I.T exports, Software and Hardware export all picked up because they were provided all facilities like land, building, world class working facilities, duty free import of plant and machinery, raw materials, computers, along with income tax exemption on their earning etc.

Now India is rubbing its shoulder with China and most of electronic giants like Apple, Oppo etc are planning to shift in India

RELAXATION IN LABOUR LAWS FOR SEZ UNITS

The labour laws of the land will apply to all units inside iuthe Zone. However, the State Government of U.P. has declared the Noida SEZ as public utilities and delegated the powers of the Labour Commissioner to the Development Commissioner, NSEZ. We help the entrepreneurs to get the SEZ unit/ SEZ approved and implement it till the commissioning of plant and start of production.

SALIENT FEATURES AND FACILITIES TO SEZ UNITS:

A designated duty free enclave and to be treated as foreign territory for trade operations and duties and tariffs.
No licence required for import.
Exemption from Customs duty on import on 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. Domestic supplier may claim DEPB in lieu of drawback, provided payments for the supply are made from Foreign Exchange account of the unit.
Exemption of Central Sales Tax on domestic purchases against Form-I.
100% tax exemption for 05 years and 50% for next 05 years thereafter, and 05 years of the ploughed back export profit for next five years.
SEZ units may be for manufacturing, trading or service activity.
SEZ units to be positive net foreign exchange earner to be cumulatively for a period of five years.
Performance of the units to be monitored by an Approval Committee headed by the Development Commissioner and consisting of Customs.
100% FDI in manufacturing sector allowed through automatic route barring a few sectors.
Facility to retain 100% foreign exchange receipts in EEFC Account.
Facility to realize and repatriate export proceeds within 12 months.
Re-export imported goods found defective, goods imported from foreign suppliers on loan basis etc. without G.R. Waiver with the permission of the Development Commissioner.
Overseas investment by SEZ units from EEFC account through automatic route.
Release of foreign exchange to DTA units to buy goods from units in SEZs.
Facility to setup offshore banking units.
No cap on foreign investments for SSI reserved items.
Exemption from industrial licensing requirement for items reserved for SSI sector.
Profits allowed to be repatriated freely without any dividend balancing requirement.
Domestic Sales on payment of full duty subject to import policy in force.
No fixed wastage norms.
Full freedom for subcontracting including subcontracting abroad.
Duty free goods to be utilized in 05 years.
Job work on behalf of domestic exporters for direct exports allowed.
No routine examination by Customs of export and import cargo.
No separate documentation required for Customs and Foreign Trade Policy.
In-house Customs clearance.
Support services like banking, post office, clearing agents etc. provided in Zone complex.
Developed plots and ready-to-use built-up space.
Exemption from Customs / Excise Duty for import / domestic procurement of goods for setting up units in the zone.