Question
Which of the following statements are true with reference to Special Economic Zones (SEZ)?
Select the correct answer using the code given below:
- SEZ units may import/procure goods and services from the Domestic Tariff Area (DTA) without payment of customs/import duty
- Customs duty is imposed on sale from SEZ to DTA
- SEZ units should be net foreign exchange-earners
Select the correct answer using the code given below:
Answer: Option D
Answer: (d)
“Domestic Tariff Area” (DTA) means the whole of India (including the territorial waters and continental shelf) but does not include the areas of the Special Economic Zones (SEZs).
“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. SEZ units may be set up for the manufacture of goods and rendering of services.
Goods and services going into the SEZ area from DTA shall be treated as exports and goods coming from the SEZ area into DTA shall be treated as if these are being imported.
Some important points related to duties in SEZs:
SEZ units may import/procure goods and services from DTA without payment of duty for setting up, operation and maintenance of units in the Zone.
SEZ unit may sell goods, including by-products, and services in DTA in accordance· with the import policy in force, on payment of applicable (customs etc.) duty.
SEZ unit shall be a positive Net Foreign exchange Earner. Net Foreign Exchange Earning (NFE) shall be calculated cumulatively for a period of five years from the commencement of production.
Was this answer helpful ?
Answer: (d)
“Domestic Tariff Area” (DTA) means the whole of India (including the territorial waters and continental shelf) but does not include the areas of the Special Economic Zones (SEZs).
“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. SEZ units may be set up for the manufacture of goods and rendering of services.
Goods and services going into the SEZ area from DTA shall be treated as exports and goods coming from the SEZ area into DTA shall be treated as if these are being imported.
Some important points related to duties in SEZs:
SEZ units may import/procure goods and services from DTA without payment of duty for setting up, operation and maintenance of units in the Zone.
SEZ unit may sell goods, including by-products, and services in DTA in accordance· with the import policy in force, on payment of applicable (customs etc.) duty.
SEZ unit shall be a positive Net Foreign exchange Earner. Net Foreign Exchange Earning (NFE) shall be calculated cumulatively for a period of five years from the commencement of production.
Was this answer helpful ?
More Questions on This Topic :
Latest Videos
Latest Test Papers
Submit Solution