Special Economic zone

Special Economic zone

Part of: GS Prelims and GS-III – Infrastructure 

In News: 

• The Department of Commerce has decided to provide suitable relaxations on compliances to be met by units / developers / co‐developers of Special Economic Zones(SEZs) in view of the COVID-19 pandemic. 

Key takeaways:

• Development Commissioners of SEZs have been directed to ensure that no hardship is caused to Developers / Co‐Developer / Units and 
• No punitive action must be taken in cases where any compliance is not met during this period impacted by the above disruption.

Important value additions:

Special Economic Zone (SEZ) 

• It is a specifically delineated duty-free enclave, deemed to be foreign territory for the purposes of trade operations and duties and tariffs. 
• SEZ units may be set up for manufacture of goods and rendering of services. 
• Goods and services going into the SEZ area from Domestic Tariff Area (whole India except SEZ) shall be treated as exports and goods coming from the SEZ area into DTA shall be treated as imports.