Benefits of SEZ and FTWZ

GMR Aerospace Park has notified 250 acres of its park as Aviation Specific Special Economic Zone (SEZ), out of which ≈19 acres is available for Free Trade Warehousing Zone (FTWZ). Export oriented businesses can take advantage of the various Special Economic Zone benefits which can strategically be used by investors to maximize economic value of their business.

GMR Aerospace Park as the developer of the SEZ will provide utility connection and road connectivity up to the plot. The SEZ will have the convenience of onsite customs clearance ensuring significant time saving to SEZ units. SEZ will have periphery boundary with security and access control creating a secure and hassle-free business environment for units to carry out their business.

Detailed benefits of SEZ are as follows:

  Central Government
  • Exemption from duty on imports/domestic procurement of goods for development, operation and maintenance of SEZ units
  • Exemption from Income tax:
    • 100% for first 5 years
    • 50% for next 5 years
    • 50% of the ploughed back export profit for the next 5 years
  • Exemption from Minimum Alternate Tax
  • External commercial borrowing up to US $ 500 million in a year without any maturity restriction through recognized banking channels
  • Exemption from Central Sales Tax

  State Government
  • Exemption from Stamp Duty
  • Exemption from Registration Charge
  • Exemption from Sales Tax/VAT
  • Exemption from Motor Spirit Tax
  • Exemption from Electricity Duty

Free Trade Warehousing Zone
Units within FTWZ are allowed to export, import and re-export products without the burden of taxes, duties and levies that a business would otherwise have been bound by. FTWZ allows business to locate stock in close proximity to their Indian customers reducing buffer stocks and improving turnaround time. This increases forward and reverse supply-chain efficiencies.

Further, FTWZ units are permitted to trade goods with or without labeling, assembly of complete knocked down and semi knocked kits, packaging or repackaging, re-sell, re-invoice or re-export of imported goods,.

In addition to the benefits of SEZ, FTWZ units can avail the following benefits:
  • Hassle-free business environment in terms of local laws & regulatory compliance.
  • Goods can be stored up to 2 years by deferring payment of duties thus freeing up working capital. There is no interest levied on deferred duty.
  • No Import/Export duties to be paid in case the goods are imported from one country and re-exported to another with or without value addition.
  • 24 / 7 Customs clearance enhancing speed and efficiency of distribution of spares and parts which is very critical in Aircraft repairs and maintenance
  • Value added activities like labeling, assembly of complete knocked down and semi knocked kits, packaging or repackaging, re-sell, re-invoice or re-export of imported goods, setting up of office in the premises etc. are permitted with little/no interference from customs personnel.

Disclaimer: We request our readers to visit for any changes to SEZ benefits.