|With reference to Special Economic Zone (SEZ), consider the following statements :|
|1. SEZs have full freedom for subcontracting.|
|2. They are exempted from routine examination by custom authorities.|
|Which of the statements given above is/are correct?|
A) 1 only
B) 2 only
C) Both 1 and 2
D) neither 1 nor 2
Correct Answer: C
Solution :[c] Both 1 and 2. The salient features of SEZs are: 'A designated duty free enclave to be treated as foreign territory only for trade operations and duties and tariffs. ? No license required for import. ? Manufacturing, trading or \service activities allowed. ? SEZ units to be positive net foreign exchange earner within three years. ? Domestic sales subject to full customs duty and import policy in force. ? Full freedom for subcontracting. ? Duty-free goods to be utilized over the approval period of 5 years. ? No routine examination by customs authorities of export/import cargo. ? Minimum size of multi-product SEZ, not to be less than 1000 hectares.
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