Normal 0 MicrosoftInternetExplorer4 The SEZ Act 2005 which came into effect in February 2006 has ce...........

Economic Affairs Foreign Trade - Trends and Policy

The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the following

1. Development of infrastructure facilities

2. Promotion of investment from foreign sources

3. Promotion of exports of services only

Which of the above is/are the objectives of this Act?

1 and 2

Only 3

2 and 3

1, 2 and 3

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Explanation:

Exp:

The SEZ Act, 2005 envisages that the SEZs would attract a large flow of foreign and domestic investment in infrastructure and productive capacity leading to generation of additional economic activity and creation of employment opportunities.

Salient Features

A SEZ is a designated duty free enclave to be treated as foreign territory for the purpose of trade operations and duties and tariffs. A SEZ does not require a license for imports.

Other notable features are as follows:

The units must become net foreign exchange earners within 3 years SEZ are allowed manufacturing, trading and service activities. Full freedom for subcontracting. The domestic sales from the SEZ are subject to full custom duties and import policy is in force, when they sell their produce to domestic markets. There was no routine examination by the custom authorities.