FAQs

Here we have attempted to answer all the questions that we have frequently been asked by our clients. Do write to us at [email protected] for any other query.

Business Zone is divided into a Special Economic Zone with a Free Trade Zone and Domestic Tariff Area (DTA).

GMR Aerospace & Industrial Park has notified Approx. 250 acres of land earmarked as SEZ.

Yes. GMR Aerospace & Industrial Park includes a FTZ of about 19.85 acres area as a part of processing area within the SEZ and this area will specially be earmarked for trading activities.

As a world-class aerospace cluster, the strategic advantages the GMR Aerospace & Industrial Park offers its clients are immense. Apart from the basic fiscal incentives, GMR Aerospace & Industrial Park provides full range of services and benefits to its clients– from great connectivity, world-class infrastructure, dedicated runway access and up- and down-stream value chain advantages, to ancillary services. Please Visit Advantages page for details.

At GMR Aerospace & Industrial Park, clients can rely on world-class infrastructure support to set up their enterprises. May it be a plot of land, Power, water or a custom-built building that your business requires, GMR Aerospace & Industrial Park will provide a ready-to-use infrastructure solution. Please Visit Infrastructure page for details.

Business Zone divided into a Special Economic Zone with a Free Trade Zone and Domestic Tariff Area (DTA).The Park is well connected by air, road and rail, with robust road and rail network to ports. Its location on the National Highway 7 (NH7) between Hyderabad and Bangalore gives it access to one of India’s major highways. Please visit Connectivity page for details.

FAQs ON SPECIAL ECONOMIC ZONE

Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs exemptions.

To cater to the needs of the domestic market GMR Aerospace & Industrial Park business zone includes facilities for companies to set up units outside the SEZ.DTA both with airside and landside access is available.

There are two documents that govern the setting up of units in a SEZ:

  1. The SEZ Act of India, 2005
  2. The SEZ rules 2006

These documents can be downloaded from the website www.sezindia.nic.in

The processing area is the bonded area within the SEZ where all manufacturing, services and trading units are located.

The NPA is the area outside the bonded area within the SEZ earmarked for commercial and other related development.

All approvals are to be given by the Unit Approval Committee headed by the Development Commissioner (DC). Clearance from the Department of Policy and Promotion/Board of Approvals, wherever required will be obtained by the Development Commissioner. A Letter of Approval to set up a unit in a SEZ is issued by the DC, provided the unit meets all the criteria specified in the Application. The Application form, can be downloaded from www.sezindia.nic.in The procedure of application is detailed under Clause 17 of the SEZ Rules, 2005.

Performance of the SEZ Developer/Developer jointly with Contractor/Unit monitored by a Unit Approval Committee consisting of Development Commissioner, Custom and representative of State Govt. on annual basis.

Following are the SEZ Scheme Obligations:

  • SEZ units have to achieve positive net foreign exchange earned over five years i.e. Exports (FOB value of all exports) – Imports (CIF value of all imports) > 0.
  • For this purpose, a Legal Undertaking is required to be executed by the unit with the Development Commissioner
  • Annual Performance Reports must be submitted to the Development Commissioner
  • The units are also to execute a bond with the zone Customs for their operations in the SEZ

Yes. There will be an on-site Customs House.

Yes. SEZ units can sell goods and services, including rejects and scrap or other by-products of the manufacturing process in the domestic market on payment of applicable customs and excise duties.

Yes. SEZ units can subcontract to units in the DTA which are registered with the excise department and also abroad with prior permission of the Specified Officer given on an annual basis. The goods sent out for subcontracting have to be returned to the SEZ within 120 days from the date of removal or within a period as may be extended by the Special Officer in charge of this procedure.

No. State has not exempted the sales from DTA to SEZ from local levies and taxes but undertake to refund.

Yes. Inter Unit Sales are permitted as per the Policy. Buyer procuring from another unit pays in Foreign Exchange.

Normal Labor Laws are applicable to SEZs, which are enforced by the respective state Governments. The state Government has been requested to simplify the procedures/returns and for introduction of a single window clearance mechanism by delegating appropriate powers to Development Commissioners of SEZs.

Supplies from Domestic Tariff Area (DTA) to SEZ to be treated as physical export? DTA supplier would be entitled to:

  • Drawback/DEPB
  • CST Exemption
  • Exemption from State Levies
  • Discharge of EP if any on the suppliers.
  • Income Tax benefit as applicable to physical export under section 80 HHC of the Income Tax Act.

FAQs ON FREE TRADE ZONE

Free Trade and Warehousing Zone means a Special Economic Zone wherein mainly trading and warehousing and other activities related thereto are carried on.

Activities allowed inside the zone are as mentioned below:

  • Trading with or without labelling, packaging or re‐packaging, re‐sell, reinvoice or re-export of imported goods.
  • Refrigeration for the purpose of storage.
  • Assembly of complete knock down or semi knock down kits.

Sales to DTA is considered as the export for fulfilling the NFE Criteria if the transactions are in foreign currency.

The benefits of FTZ are applicable in for:

  • Importing products into India through FTZ.
  • Exporting products out of India through FTZ.
  • Re-exporting products out of India through the FTZ.

Import Benefits:

  • Duty deferment upto 2 years, thus unlocking working capital.
  • Hassle-free business environment in terms of local laws regulatory compliance.
  • 24/7 Customs clearance enhancing speed and efficiency of India distribution.
  • Quality control capability prior to duty-payment will allow companies to have quality control on products before the duty payment.
  • Enabling Implementation of Vendor Managed Inventory (VMI) Model.
  • Postponement Distribution capabilities.

Export Benefits:

  • Products from India entering the FTZ are treated as an export thereby providing immediate export benefits (Duty Drawback, DEPB Credits etc.) to suppliers or companies in DTA.

No, Income tax benefits are not available on the export of products to other SEZ/FTZ.

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