3.2.6 Import/ExportImport/export procedures are much more relaxed compared to earlier restrictions and GOI is in the process of further relaxing the norms to make it globally competitive. Authorised dealersmay freely extend letter of credits and send remittances for imports. It is essential to create anatmosphere of trust and transparency and simplify procedures to bring down transaction costsduring import/export to facilitate development of India as a global hub for manufacturing,trading and services. It is also important to identify and nurture special focus areas whichwould generate additional employment opportunities facilitating technological andinfrastructural upgradation, especially through import of capital goods and equipment, therebyincreasing value addition and productivity, while attaining internationally accepted standardsof quality. But it is to ensure that the domestic sectors are not disadvantaged in the Free orRegional Trade Agreements entered into in order to enhance exports; avoiding inverted dutystructures 2.It is also important to upgrade the infrastructural network related to the entire Foreign Tradechain to international standards and revitalise the Board of Trade by redefining its role andactivating embassies as key players in export strategy and linking the commercial wings abroadthrough an electronic platform for real time trade intelligence and enquiry dissemination 2.1. http://www.companyadvice.com/sbi_transferpricing.htm (15.07.2008)2. http://www.companyadvice.com/sbi_importexport.htm (14.07.2008)Page 32 of 162CHAPTER 3: Market Survey & External Analysis3.2.7 Special Economic Zones (SEZ)The GOIs introduced policies for setting up Special Economic Zone (SEZ) with a view tofacilitate Indian Industry with an internationally competitive and hassle free environment forexports. SEZ can be used to set up manufacturing operations and rendering of services. Theyare specifically defined duty free zone and are deemed to be a foreign territory for the purposeof trade operations and Government duties etc.There were some blocks in the smooth implementation of the policy therefore to overcomethese roadblocks and to give a long term and stable policy framework with minimum rules andregulations, the SEZ Act, 2005 has been promulgated. The provisions of the Act regulate thelegal framework and regulatory aspects of SEZ development as well as for enterprisesoperating in SEZs1. There are 42 Special Economic Zones in various parts of the country in theprivate/joint sectors or State Government 2. It is essential that the SEZ units are positive NetForeign Exchange Earner within 3 years with proper maintenance of accounts 3.Salient features and facilities of SEZ 4 Policy related Designated duty free and treated as foreign territory for trade operations and duties andtariffs with no license requirement for import SEZ units may be for manufacturing, trading or service activity and must be a positive netforeign exchange earner within three years Allows 100 per cent Foreign Direct Investment in manufacturing Duties related concessions Exemption from customs duty on import and from Central Excise duty on procurement ofcapital goods, raw materials, consumables, spares etc.1. http://www.companyadvice.com/sbi_specozones.htm (15.07.2008)2. http://www.companyadvice.com/specozones_intro.htm (15.07.2008)3. http://www.companyadvice.com/specozones_terms.htm (15.07.2008)4. http://www.companyadvice.com/specozones_salientfeatures.htm (15.07.2008)