what is sez

A Special Economic Zone (SEZ) is an area within a countrys national borders where the business and trade laws are different from the rest of the country. The definition of an SEZ is determined individually by each country, but typically includes a geographically limited area, usually physically secured, with single management or administration, eligibility for benefits based upon physical location within the zone, separate customs area (duty-free benefits), and streamlined procedures. SEZs are typically established with the aim of achieving one or more of the following policy objectives: attracting foreign direct investment and promoting exports and industrialization, serving as "pressure valves" to alleviate large-scale unemployment, supporting a wider economic reform strategy, and promoting green environment. The first SEZs appeared in the late 1950s in industrialized countries, and the most successful SEZs to date have been in China.