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SEZs are free trade zones and customs authorities do not supervise them. These zones are typically marked by minimum bureaucracy, best infrastructure, generous tax holidays, unlimited duty free imports of raw, intermediate and final goods as well as capital goods. Basically, governments look to SEZs to overcome difficulties in bureaucracy and fiscal measures.
Features of Special Economic Zones:
The main features of SEZ are following:
i. SEZ units would be able to import capital goods and raw material duty free.
ii. SEZ units shall be deemed to be foreign territory for the purpose of trade operations and tariffs...
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