CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Special Economic Zones
Tarini Exports Ltd is evaluating a unit inside a Special Economic Zone in Gujarat. Its company secretary notes that, for the purpose of undertaking authorised operations, the SEZ is treated under the SEZ Act, 2005 as:
Under the SEZ Act, 2005, an SEZ is deemed to be a territory outside the customs territory of India for the purpose of undertaking authorised operations. This is a deeming fiction for customs purposes and does not make the zone a foreign country for every law.
- AA territory within the customs territory of India
- BA territory outside the customs territory of IndiaCorrect
- CA foreign country for all laws, including labour laws
- DA port only, and never an airport or inland container depot
Explanation
Section 53(1) deems an SEZ, from the appointed day, to be a territory outside the customs territory of India for undertaking authorised operations. The option saying it is within the customs territory reverses the rule. Treating it as a foreign country for all laws is wrong because the deeming is for authorised operations, and section 53(2) allows it to be deemed a port, airport, ICD or land station.
Did you get it right without looking?
One question tells you little. A timed set on Law relating to Special Economic Zones shows your real accuracy, how long you take and where you lose marks.
More Law relating to Special Economic Zones questions
- The Central Government proposes a notification under section 49 of the SEZ Act, 2005 directing that a Central Act shall not apply to all Spe…
- Kaveri Electronics proposes a Unit in an SEZ and seeks foreign collaboration with a Singapore partner including foreign direct investment. U…
- The Central Government wishes to direct that a particular provision of a Central Act (other than the SEZ Act) shall not apply to all Special…
- Two Developers in an SEZ have a civil dispute. No court has been designated for that SEZ under section 23(1). How is the dispute to be dealt…
- A notification under Section 49 of the SEZ Act proposes to apply a Central Act to SEZs only with certain modifications and adaptations. Befo…
- Kaveri Exports, an SEZ Unit, ships finished goods to a buyer in Dubai. Which statement correctly reflects the SEZ Act, 2005 on duties for th…