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CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Special Economic Zones

Under the SEZ Act, 2005, what is the legal status of an SEZ for undertaking authorised operations, which underpins the duty concessions?

An SEZ is deemed to be a territory outside the customs territory of India for the purposes of undertaking authorised operations, from the appointed day. This deeming supports the duty concessions, but it does not make the zone foreign territory for all laws.

  1. AIt is part of the customs territory of India
  2. BIt is deemed to be a territory outside the customs territory of IndiaCorrect
  3. CIt is a foreign territory for all laws
  4. DIt is a Domestic Tariff Area with concessional rates

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. Option C overstates this, as the deeming is only for authorised operations and customs purposes, not for all laws.

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