- Definition: A specially delineated duty-free enclave.
- Treated as a deemed foreign territory within a country.
- For purpose of trade operations, duties, and tariffs.
- Promotion of Exports:
- Main objective is promotion of exports of goods and services.
- Provides 100% Income Tax exemption on export income for SEZ units.
- Duty-free import/domestic procurement of goods for development/operation.
- Supplies into SEZs are zero-rated under GST law.
- SEZ units must be a positive Net Foreign Exchange Earner.
- Simplified procedures and single window clearance.