The Cochin SEZ is a foreign territory in India. Legally, it stands outside the Customs territory of India. This positioning permits both fast project approvals in the SEZ as well as a hassle-free environment for running units in the SEZ.

Approvals: Projects in the SEZ have only to ensure that their foreign exchange inflows (through exports) exceed foreign exchange outflows (by way of imports and import content of sales to the Indian market). Trading, manufacturing, assembly, re-packing, or a combination of these, are all permitted in the SEZ. Foreign equity can be brought in without prior approvals: transactions have only to be reported to the Reserve Bank of India, Cochin in 30 days. Free repatriation of profits, dividends, royalty, and know-how payment is permitted.
Branch Offices of foreign corporates are permitted to run units in the SEZ without first incorporating a company in India. Indian businesses can also operate in the SEZ without having to incorporate a new legal entity; they only need to maintain accounts and bank accounts separately. The Zone has a statutory Single Window Board to speed up clearances from State Government Departments.

Operational Regime in the SEZ: All activities of SEZ units, unless otherwise specified, are on self-certification basis. SEZ units can subcontract production or part of production process even outside the Zone. Units can transfer goods to other units in the Zone without restrictions.
On-site Customs Facilitation: As the SEZ is a foreign territory, Customs procedures for imports meant for export production are liberal: there’s no Customs examination of import consignments. There’s self-sealing facility for export cargo. A Customs Unit is deployed exclusively for Cochin SEZ. All customs clearances and documentation are done in the Zone itself. There is a CFS at the SEZ. The LOCODE for Cochin SEZ is ,IN COK 6'

SEZ units can import without duty construction material, capital goods and raw materials; no Import Licences are required.

Even second hand plant and machinery can be imported. Upto 5 years is available for utilization of imported capital goods and raw materials.
 

Indian-made capital goods and raw materials are also available duty-free. Exemption is granted from all local taxes like Service Tax, Sales Taxes and Entry Tax. Exports by SEZ units are generally exempted from export cesses.
 

The Zone Administration is empowered to give Country of Origin certification for products of SEZ units.

SEZ units are permitted to maintain foreign currency accounts and hold 100% of export proceeds in foreign currency. There is no time limit within which export proceeds have to be brought to India. SEZ units can take External Commercial Borrowing for funding and running projects without prior approvals.

SEZ units can sell in the Indian market on payment of duties.

Income tax exemption for 15 years is available for SEZ units as detailed below:-

a) 100% of profits and gains from exports for the first 5 years

b) 50% of profits and gains from exports for the next 5 years

c) Amount not exceeding 50% which is credited to a reserve account 'Special Economic Zone Re-investment Reserve Account' and utilised for business for the next 5 years