--:: SURAT SPECIAL ECONOMIC ZONE ::--

FAQs

Q. A.	What is a Special Economic Zone? A Special Economic Zone is a deemed Foreign land for the purpose of trade operations, duties and tariffs. SuRSEZ offers hassle free business environment along with a wide range of regulatory and fiscal benefits offered by the State and Central governments.
Q. A.	What are the special advantages of SuRSEZ? SuRSEZ is among the first SEZs in the country. While many new projects have got government approvals, they will take time to become operational as the gestation period in such projects is large. So by setting up at SuRSEZ you will reap the benefits of experience that the Zone administration has acquired over the years. Another major positive is the unique location of SuRSEZ which is in Surat enjoying very good road /rail /air connectivity, access to quality skilled labour and to other resources in the highly progressive industrial belt of the country. It is just 14 Kms from Surat Railway Station adjacent to the Mumbai-Delhi railway line.
Q. A.	Is SuRSEZa Government Organization? NO. It is the First operational Private Sector Zone in the Nation. The unit holder can be assured of all assistance from DGDC, the promoters to enable him achieve his business goals as it is DGDC's primary objective to make the Zone and its units successful and prosperous.
Q. A.	Who will be the Government Authority monitoring exports and imports? SuRSEZ falls under the jurisdiction of the Development Commissioner of Kandla. The Zone has an office headed by the Assistant Development Commissioner which facilitates the functioning of the industrial units.
Q. A.	Has anyone started operation? SuRSEZ has been functional now for over 5 years. Over 120 companies are fully functional and about 55 new ventures are under implementation.The turnover of the units in the Zone has gone from Rs.62 crore ($ 14 million) in year 2000-01 to Rs. 2400 crore ($ 580 million) in the year 2005-06. Projected turnover of the Zone for financial year 2006-07 is Rs.4000 crore ($ 725 million).
Q. A.	Who could be the prospective operators? Any individual /company /partners /entity which has a predominantly export oriented business can set up operations either as a manufacturing unit or a service unit in the Zone. The only requirement is that the activity should be of a non-polluting type.
Q. A.	What are the special features the Zone offers? As mentioned, units in the Zone are exempted from Customs Duty, Excise Duty, Sales Tax, and Income Tax as per relevant government notifications. Further, the Zone offers a very efficient and hassle free business environment where the units can concentrate on their core business and not worry about day to running around for clearances, approvals, etc. The office of the DC in the Zone acts as a single window facility for all investors' needs.
Q. A.	What are the Customs Duty exemptions available ? The units in the Zone can import duty-free raw material, components, consumable, spare parts and packing material. Even their capital items (Machinery) are exempted, irrespective of the value.
Q. A.	What about the Licenses for Imports? No License is required for imports, including second hand machineries. This makes import activities smoother than ever before.
Q. A.	If we procure goods from DTA units What is the applicability of taxes ? Sales by DTA (Domestic Tariff Area) units to units in SuRSEZ are considered as physical exports and the seller enjoys all export benefits. As such, there will be no excise duty and sales tax on such sales by DTA units to SEZ units.
Q. A.	If there is any purchase from other states we have to pay CST. How will we bear CST arising out of Inter State Sales? As per the policy, the Office of the Development Commissioner of the Zone will refund CST paid.
Q. A.	Will it be possible to supply to other units at SuRSEZ ? YES. Inter Unit Sales are permitted as per the Policy. While buyer procures from another unit he can pay in Foreign Exchange. Inter SuRSEZ & SuRSEZ to EOU sales is also permitted.
Q. A.	What is sub-contracting? A unit holder at SuRSEZ can get the job partially done at DTA and make the product available for him at the Zone. In such cases, bonding is to be done with the authorities to ensure that the goods are going to come back to the Zone. This facility is not applicable to Diamond Manufacturing Units.
Q. A.	Income Tax Exemption is a major attraction. Can you explain this benefit? This benefit is available undersection 10 AA of the Income Tax Act.100% of export profit is exempted from Income Tax for the first 5 years from the date of first exports. For the next 5 year, 50% of export profit is exempt. For a further period of 5 years, an amount not exceeding 50% of profits is exempt subject to reinvestment in this 3 years. Thus, total Income tax exemption is available for 15 years.
Q. A.	Are there any industries which are not eligible to operate in the Zone? Any polluting industrial unit which is engaged in agro-chemicals, dyes, dye-intermediates, solvents etc., socially obnoxious products including liquor and items of strategic importance such as defense equipments are not permitted at the Zone. In short, non-polluting industries are welcomed.
Q. A.	Will there be any major bureaucratic hassles? Development Commissioner, Surat Special Economic Zone has consistently been positive and proactive to see that no impediments come in the way of the units. So, there are no bureaucratic hassles.
Q. A.	One of my friends who is an NRI wants to invest at SuRSEZ. Will he get benefit? YES. Foreign Direct Investment up to 100% is permited in most sectors through Automatic Route. He can repatriate 100% profits to the place where he stays. Everyone, whether in India or outside are benefited in many ways.
Q. A.	How does the SEZ scheme compare with the EOU scheme ? The SEZ scheme has many advantages over the EOU scheme. Net Foreign Exchange earning as a percentage is not applicable. Only units have to be net forex positive cumulatively at the end of 5 years. Predetermined value addition is not compulsory. Duty free material could be utilized in five years time instead of one year. Only self certification is applicable for import of capital items. Mandatory period of 180 days for receipt of export proceeds has been extended to 360 days. Most importantly, EOU's will not be eligible for any Income tax benefit u/s 10B, for exports effected after 31/03/09. These and some other similar benefits make the SEZ scheme more attractive.
Q. A.	Routine examination of goods by customs in the EOU is common. Will the same practice continue at the SuRSEZ? It is not applicable in SuRSEZ. The meaning of Hassle Free Zone clearly originates from this concept. No Tax, No Duties, No Hurdles.
Q. A.	What is the practical role of Development Commissioner? He is a facilitator for the business community, rather than a controller. He is also the single point interface for many activities.
Q. A.	Will you explain the logistics and physical movement of cargo? SuRSEZ has a well-equipped Inland Container Depot (ICD) with 24 X 7 manpower available to monitor the cargo. For Gems & Jewellery units SuRSEZ has established strong room at SAHAR Airport and at SuRSEZ. There is an arrangement for secure handling of precious cargo. The ICD at Sachin handles more than 200 containers a month.