With reference to Special Economic Zones (SEZs), consider the following statements:
1. It is deemed to be a foreign territory for trade operations, duties, and tariffs.
2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act.

Which of the statements given above is /are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Question

With reference to Special Economic Zones (SEZs), consider the following statements:
1. It is deemed to be a foreign territory for trade operations, duties, and tariffs.
2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act.

Which of the statements given above is /are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

ONLiNE UPSC · Accepted Answer

Statement 1 is correct. 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. In other words, SEZ is a geographical region that has economic laws different from a country&rsquo;s typical economic laws. Usually, the goal is to increase foreign investments.

Statement 2 is correct. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules. Each Zone is headed by a Development Commissioner and is administered as per the SEZ Act, 2005 and SEZ Rules, 2006. Units may be set up in the SEZ for manufacturing, trading, or for service activity.

Special Economic Zones (SEZs)

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M Question 1	⏱ 0
With reference to Special Economic Zones (SEZs), consider the following statements: 1. It is deemed to be a foreign territory for trade operations, duties, and tariffs. 2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act. Which of the statements given above is /are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2