Special Economic Zones (Customs Procedures) Regulations,
2003
Notification No. 53/2003-Customs (N.T.) dated 22-07-2003
Amended by:
65/2003-Customs (N.T.), dated 14-08-2003
87/2003-Customs (N.T.), dated 14-10-2003
108/2003- Customs (N.T.), dated 29-11-2003
119/2003- Customs (N.T.), dated 31-12-2003
27/2004 - Customs (N.T.), dated 28-02-2004
48/2004 - Customs (N.T.), dated 31-03-2004
59/2004 - Customs (N.T.), dated 30-04-2004
62/2004 - Customs (N.T.), dated 11-05-2004
1. Short title, extent and commencement.-
(1)
These regulations may be called the Special Economic Zones
(Customs Procedures) Regulations, 2003.
(2) It extends to the whole of India.
(3) They shall come into force on 11th day of May,
2004.
2. Definitions.- In these regulations, unless
the context otherwise requires, -
(a) "Act" means the Customs Act, 1962 (52 of 1962);
(b) "Board" means the Board defined under clause (6) of
section 2 of the Act;
(c) "Board of Approvals" means the combined Board of
Approvals for export oriented unit and special economic zone
units, as notified in the Official Gazette, from time to time, by
the Government of India in the Ministry of Commerce and Industry;
(d) "custodian" means any person approved by the
Commissioner of Customs under section 45 of the Act for the
custody of imported goods unloaded in the customs area;
(e) "Development Commissioner" means the Development
Commissioner of the concerned special economic zone;
(f) " developer" means a person engaged in development, or
operation, or maintenance of zone or in providing public utility
services within the special economic zone, duly approved by the
Board of Approvals and includes any other person authorised by
the developer for such purpose;
(g) "Export and Import Policy " means the Export and Import
Policy, notified from time to time, in the Official Gazette by
the Government of India in the Ministry of Commerce and Industry
under section 5 of the Foreign Trade (Development and
Regulations) Act, 1992 (22 of 1992);
(h) "export oriented undertaking" means an undertaking
which has been approved as a hundred per cent. export oriented
undertaking by the Board of Approvals;
(i) "Electronic Hardware Technology Park" means the
"Electronic Hardware Technology Park Scheme notified by the
Government of India in the Ministry of Commerce, and approved by
the Inter-Ministerial Standing Committee appointed by
notification of the Government of India in the Ministry of
Industry (Department of Industrial Development);
(j) "Manufacturer Exporter" shall have the same meaning as
defined in the Export and Import Policy.
(k) "Nominated Agencies" means the Metals and Minerals
Trading Corporation Limited, the Handicraft and Handloom Export
Corporation, the State Trading Corporation, the Projects and
Equipment of India Limited and any other agency authorized by the
Reserve Bank of India;
(l) "self certification" means the certification regarding
sealing of container or package of goods under export given by
the zone unit and includes the certificate regarding contents and
sealing of the container or package, given by the owner, the
working partner, the Managing Director or Company Secretary of
the said unit or any person, (holding a high position in such
zone unit, authorised by such owner, working partner or the Board
of Directors of such unit (m), as the case may be, on the copies
of shipping bill, which indicates that such package or container
in respect of goods under export have been sealed in his
presence;
(m) "Software Technology Park Scheme" means Software
Technology Park Scheme notified by the Government of India in the
Ministry of Commerce, and approved by the Inter-Ministerial
Standing Committee appointed by notification of Government of
India in the Ministry of Industry (Department of Industrial
Development);
(n) "status holder" shall have the same meaning as defined
in the Export and Import Policy;
(o) "zone" means a special economic zone specified by the
Central Government under section 76 A of the Act;
(nn) " Unit Approval Committee", in respect of a special
economic zone means a committee set up for the special economic
zone as notified in the Official Gazette by the Central
Government in the Ministry of Commerce and Industry;
(p) "zone unit" means a special economic zone unit of
business establishment set up in the processing area of the zone
for carrying out authorised operations only;
(q) Words and expressions used herein and not defined, but
defined in the Act or Rules made there under, shall have the
meanings respectively assigned to them in the Act or the rules.
3. Setting up of unit in the zone.- (1) A zone
unit may be set up for the purposes of carrying out authorised
operations;
(2) The Letter of Permission for setting up of zone unit
shall be issued by the Development Commissioner;
(3) Each zone unit shall have separate establishment
distinct and identifiable or distinct and partitioned, from other
zone unit.
4. Import of goods by the zone unit.- (1) The
zone unit may import goods required for carrying its authorised
operations or for the purposes of setting up the unit, through-
(a) ports or airports;
(b) land customs stations;
(c) inland container depots;
(d) foreign post offices;
(e) authorised courier;
(2) The goods may also be procured from public bonded
warehouse or private bonded warehouse or international exhibition
held in India.
(3) In case of software, imports shall also be allowed
through data communication link, internet, e-mail or any other
electronic mode.
(4) For clearance of imported goods at all ports, airports,
land customs stations, inland container depots, the zone unit or
developer, as the case may be, shall be required to follow the
procedures, namely:-
(i) the zone unit or developer, as the case may be, shall
file a bill of entry for home consumption in quintuplicate giving
therein, complete description, model, make, specifications,
purpose of import of goods such as trading, manufacturing, nature
of goods such as capital goods, raw materials, spares,
consumables, with specially stamped endorsement as " special
economic zone cargo" alongwith bill of lading or airway bill, a
invoice, packing list and purchase order or contract for noting
of the bill of Entry in the zone;
(ii) the bill of entry shall be assessed by the Custom
officers in the zone;
(iii) the assessed bill of entry shall be submitted to the
Deputy Commissioner of Customs or Assistant Commissioner of
Customs, as the case may be, (hereinafter referred to as proper
officer ) at the place of import such as port, airport, land
customs station, inland container depot, and the same shall be
treated as permission for transfer of goods to the zone;
(iv) in case of sealed full container load ( FCL)
container, the goods shall be transferred to the zone on the
basis of assessed bill of entry after verification of the seal,
without customs escorts;
(v) in case of other cargo, the goods shall be allowed to
be transferred to the zone on the basis of assessed bill of entry
either under customs escort or under transshipment procedure,
depending on the option made by the zone unit; and for such
transshipment, no separate documents shall be required to be
filed and the transshipment permission shall be stamped on the
fifth copy of the bill of entry;
(vi) on arrival of the goods in the zone, the goods shall
be subjected to verification of seal in case of full container
load container or verification of marks and numbers of packages
in other case and after such verification, if in order, such
goods received shall be allowed admission in the zone;
(vii) the zone unit shall submit fifth copy of bill of
entry bearing endorsement of the Customs officers in the zone
that the goods have been received in the zone, to the proper
officer in charge of the airport, port, inland container deport,
land customs station, post office, public or private bonded
warehouse, as the case may be, within a period of forty-five days
from the date of clearance of goods from such airport, port,
inland container deport, land customs station, post office,
public or private bonded warehouse, as the case may be, failing
which the proper officer in charge of such airport, port, inland
container deport, land customs station, post office, public or
private bonded warehouse, as the case may be, shall write to the
proper officer having jurisdiction over the zone for raising
demand of duty from the zone unit;
(viii) the zone unit shall be required to obtain notional
out of charge of goods from the proper officer of the zone on the
same day if the goods are brought during the working hours or
immediately on the next working day in case goods are brought
beyond working hours;
(ix) where goods are imported by the zone unit or developer
through courier, customs officer in the zone shall assess the
goods as per the Courier Import and Export (Clearance)
Regulations, 1998.
(5) The goods imported by the zone unit or developer shall
not be subject to detailed examination except in case of prior
intelligence or information or to maintain an element of
surprise.
(6) Where the goods have been imported by post, the zone
unit or the developer, following the procedure specified in
sub-regulation (4), shall file the bill of entry with the Customs
officers in the zone marking clearly "Postal Imports" subject to
following conditions, namely:-
(i) for the purpose of bill of entry, the post-office
registration number as indicated in the intimation letter issued
by the post office shall be taken as the import general manifest
and item number, of the bill of entry;
(ii) copy of intimation letter received from the post
office shall also be pasted on the reverse of the original bill
of entry;
(iii) where the zone is away from the foreign post office,
the goods shall be moved to the zone under customs escort from
such post office or under control of the postal authorities.
5. Import of goods through personal carriage by
gems and jewellery unit.- (1) Notwithstanding anything contained
in regulation 4, the zone unit engaged in manufacture and export
of gems and jewellery, shall be allowed to import precious goods,
namely gold, silver, platinum, gem and jewellery through personal
baggage subject to the following procedure, namely:-
(i) the passenger bringing the precious goods shall declare
the goods with the customs authorities at the airport in the
arrival hall in the declaration form as specified by
Commissioner of Customs in charge of concerned airport alongwith
a duly acknowledged copy of intimation submitted to the Customs
officers in the zone ;
(ii) the passenger shall hand over the goods duly packed
indicating name and address of the consignee zone unit and
accompanied by invoice and packing list to the customs
authorities for detention in the warehouse under the detention
receipt;
(iii) the Customs officers shall detain the goods and issue
detention receipt indicating full details such as weight, purity
and number of bars, name of unit, passport number of the
passenger and name of the supplier, etc.;
(iv) the zone unit shall file the bill of entry in
quintuplicate alongwith a copy of invoice, packing list,
declaration with the Customs officers in the zone and in such
cases, the detention receipt number issued by the Customs at
Airport at the time of arrival of the passenger shall be treated
as Import General Manifest and item number;
(v) after assessments of bill of entry, original copy of
the bill of entry shall be retained by the Custom officers in the
zone and the remaining copies shall be handed over to the
representative of the zone unit for presenting at the airport
detention counter where goods shall be allowed clearance after
receiving the original detention receipt, authorization from the
zone unit and making entries in the warehouse register, detention
receipt register and obtaining signatures from the authorised
representative of the zone unit;
(vi) after release of the goods, the goods shall be moved
to the zone under customs escort and shall be allowed admission
into the zone unit after verification of marks and numbers of
packages and notional "out of charge" by the Customs officers in
the zone;
(vii) the goods so detained at the airport may also be
allowed to be transported by an authority or agency approved by
the Commissioner of Customs having jurisdiction over the zone.
6. Import through data communication or telecommunication
link.-
(1). Where the zone unit import computer software through
data communication or telecommunication links, the zone unit
shall file bill of entry within a period of twenty four hours of
such import alongwith invoice and other relevant documents and
shall obtain notional 'out of charge' from the Customs officers
in the zone, subject to the following conditions, namely:-
(i) the documents such as invoice, etc. in respect of such
import of computer software shall be routed through banks;
(ii) the value of such software shall be verified by the
Development Commissioner of the zone;
(iii) instruction issued by the Reserve Bank of India, from
time to time, if any, in this behalf shall be followed.
7. Procurement from warehouse.- (1) Where goods
are procured from the warehouse appointed or licensed under
section 57 or section 58 of the Act, the zone unit shall file
bill of entry giving therein complete description of the goods
such as model, make, serial number, specification, with the
Customs officers in the zone.
(2) The zone unit shall submit the duly assessed bill of
entry assessed by the Customs officers in the zone to the proper
officer in charge of the warehouse from where the zone unit
intends to procure the goods.
(3) The proper officer in charge of the warehouse shall
allow clearance of the goods from the warehouse for supply to the
zone unit without payment of duty on the cover of ex-bond
shipping bill and on the basis of bill of entry duly assessed by
the customs officers in the zone.
(4) Where the re-warehousing certificate by way of
endorsement by the Customs officers in the zone on the copy of
ex-bond shipping bill is not received by the proper officer
incharge of warehouse within the period of forty-five days from
the date of clearance of the goods from the warehouse, the proper
officer incharge of the warehouse shall proceed to demand of duty
from the owner of such goods so supplied to the zone unit.
(5) The zone unit shall obtain notional "out of charge" of
goods from the proper officer of the zone on the same day if the
goods are brought during the working hours, or immediately on the
next working day in case goods are brought beyond working hours.
8. Procurement of goods from international
exhibition held in India.- Subject to the procedure as specified
in the regulation 7, the zone unit shall be allowed to procure
goods from international exhibitions held in India.
9. Re-import or replacement or re-export of
goods.- (1) The zone unit shall be allowed to re-import the
goods exported and found to be defective or damaged by the
overseas buyer or in the case of failure of the buyer to take
delivery of the goods, subject to the procedure as mentioned in
regulation 4 and subject to the following conditions, namely:-
(i) identity of goods is established at the time of
re-import ; and
(ii) goods are re-imported within a period of one year from
the date of export.
(2) Where the goods imported by the zone unit are found to
be defective or damaged or found to be otherwise unfit for use
and suppliers agree to replace such defective or damaged or unfit
for use goods, then such goods received as free replacement shall
be allowed admission in the zone by way of import or replacement
through the authorized dealer of the overseas supplier in India,
subject to the following conditions, namely:-
(i) the goods so found to be defective or damaged or
otherwise unfit for use may be re-exported later on; or
(ii) where the overseas supplier of such goods does not
insist for re-export of such goods, the re-export of the same
shall not be insisted provided such goods are either destroyed
with the permission of proper officer, or shall be cleared into
domestic tariff area on payment of duty as if cleared for home
consumption.
10. Procurement of goods by zone unit or
developer from domestic tariff area.- (1) The zone unit or
developer, as the case may be, may procure any goods from
domestic tariff area for carrying out authorised operation
subject to the following conditions, namely:-
(i) the domestic tariff unit supplying the goods to the
zone unit or developer, or the zone unit or developer on behalf
of the domestic tariff area unit, as the case may be, shall file
a bill of export giving therein complete description, model,
make, specifications, nature of goods such as capital goods, raw
materials, spares, consumables, with specially stamped
endorsement as "special economic zone cargo" alongwith invoice,
packing list and purchase order for noting and assessment of the
bill of export in the zone;
(ii) the bill of export shall be assessed by the customs
officer in the zone;
(iii) the assessed bill of export shall be submitted to the
proper officer having jurisdiction over the domestic tariff area
unit and the same shall be treated as permission for
transfer of goods to the zone;
(iv) the domestic tariff area unit supplying goods to the
zone unit or the developer, as the case may be, shall be allowed
to remove the goods on the cover of ARE-I and the assessed
bill of export, giving therein complete description, model, make,
serial number, specifications and other relevant particulars
;
(v) the goods so brought to the zone may be allowed
admission into the zone on the basis of assessed of bill of
export and ARE-I and a copy of bill of export and ARE-I, with an
endorsement that goods have been admitted in full into the zone,
shall be forwarded to the Central Excise Superintendent having
jurisdiction over the domestic tariff area unit within forty-five
days, failing which the Superintendent shall raise demand of duty
against the domestic tariff area unit;
(vi) where domestic tariff area unit or zone unit, on
behalf of such domestic tariff area unit, has filed a bill of
export under claim of duty drawback or duty entitlement passbook
scheme and the domestic tariff area unit does not intend to claim
duty drawback or duty entitlement passbook scheme credit, a
disclaimer to this effect may be given to the zone unit, and on
the basis of such disclaimer given by the domestic tariff area
unit, duty drawback or duty entitlement passbook scheme credit
may be claimed by the zone unit;
(vii) the proper officer in the zone shall assess the bill of
export in the same manner as it is assessed in the case of export
of goods under claim of duty drawback or duty entitlement
passbook scheme credit or no claim, as the case may be, and
instruction issued under respective export promotion scheme shall
apply mutatis mutandis in respect of these goods ; and
valuation of such goods shall be done in terms of
section 14 of the Act;
(viii) before allowing admission of such goods in to the
zone, the goods shall be examined by the customs officer of the
zone in respect of description, quantity, marks, model and other
relevant particulars. given in the ARE-I and bill of export,
invoice and packing list and also as per the examination norms
laid down in respect of export goods and instruction issued by
the Board in this behalf from time to time;
(ix) the duty drawback or duty entitlement passbook scheme
credit against such supply of goods by domestic tariff area unit
to the zone unit or to the developer shall be admissible only
when the payment for such supply of goods to the zone unit is
received in freely convertible foreign currency;
(x) a copy of the bill of export and ARE-I with endorsement
of zone customs authorities on it to the effect that goods have
been admitted in full in the zone shall be treated as proof of
export;
(xi) where the goods are intended to be procured by the
zone unit or developer from a trader or merchant exporter, the
procedure as stated hereinabove shall apply mutatis mutandis,
including filing of bill of export except that the goods shall
not be required to be brought to the zone under the cover of
ARE-I and assessed copy of bill of export shall not be required
to be submitted to the jurisdictional Central Excise authority
for removal of goods, from the premises of the trader or
merchant exporter.
(2) Notwithstanding anything contained in sub- regulation
(1), where the goods are procured by a zone unit or developer
from a domestic tariff area unit and where either the zone
unit or the developer or the domestic tariff area unit do not
claim duty drawback or duty entitlement pass book scheme credit
or where such supplies from domestic tariff area unit to the
zone unit or developer, as the case may be, are not against
fulfillment of export obligation under any export promotion
scheme or where no export benefits against such supplies are
claimed either by the domestic unit supplying the goods or the
zone unit or developer, as the case may be, then, the zone unit
or the developer may procure any such goods from domestic tariff
area for carrying out authorised operation subject to the
following conditions, namely:-
(i) zone unit or developer shall submit application to the
proper officer of the zone for issuance of pre-authenticated
Domestic Procurement Certificate and on the basis of such
application, the proper officer of the zone or any other officer
authorised by him in this regard shall issue to the zone unit or
developer, as the case may be pre-authenticated Domestic
Procurement Certificate in the Form specified in Annexure -I to
these regulations;
(ii) the Superintendent of Central Excise having
jurisdiction over the domestic tariff area unit shall , on the
basis of Domestic Procurement Certificate issued under clause
(i), allow the domestic tariff area unit to remove the
goods under the cover of ARE-I ;
(iii) the ARE-I shall contain complete description of
goods such as model, make, serial number, technical
specifications;
(iv) the goods allowed to be removed under clause (ii) may
be allowed admission into the zone on the basis of ARE-I and a
copy of ARE-I, with an endorsement that goods have been admitted
in full into the zone, shall be forwarded to the Superintendent
of Central Excise having jurisdiction over the domestic tariff
area unit within a period of forty-five days from the date of
removal of goods from the factory or warehouse in the domestic
tariff area , failing which the proper officer in charge of zone
unit shall raise demand of duty against such domestic tariff
area unit;
(v) before allowing admission of such goods in to the
zone, the goods shall be examined by any officer of customs
authorised in this behalf by the proper officer of the zone in
respect of description, quantity, marks, model and other
relevant particulars given in the ARE-I and invoice and packing
list and also in accordance with the examination norms laid down
in respect of export goods and instruction issued by the Board in
this behalf from time to time;
(3) Nothing contained in sub-regulations (1) and (2) shall
apply in cases where the duty paid goods are procured from
domestic tariff area and no duty concession or export
incentives are being claimed against such supplies by the
domestic supplier or the zone unit or the developer, as the
case may be, and such goods shall be allowed admission into the
zone on the basis of invoice issued by the supplier of the goods
and concerned transport documents, if any.
Explanation 1.- for the purpose of this regulation,
''export incentives'' includes drawback, duty entitlement
passbook scheme, rebate, advance license or counting of proceeds
as export earnings or counting of proceeds as fulfillment of
export obligation under any scheme.
Explanation 2.- For the purposes of this regulation, "
ARE-I" means Form ARE-I referred to in notification No
40/2001-Central Excise (N.T), dated the 26th June, 2001.
11.Procurement of goods from export oriented
undertaking or software technology park unit or electronic
hardware park unit .- (1) The zone unit or the developer may
also procure capital goods or manufactured goods from export
oriented undertaking or software technology park unit or
electronic hardware technology park unit subject to following
conditions, namely:-
(i) subject to the procedure specified in regulation 7, the
export oriented undertaking or software technology park unit or
electronic hardware technology park unit, as the case may be, may
transfer capital goods imported or procured duty free to the zone
unit or the developer, as the case may be;
(ii) subject to the procedure as specified in the
regulation 10, the export oriented undertaking or software
technology park unit or electronic hardware technology park unit,
as the case may be, may also transfer manufactured goods to the
zone unit or to the developer duty free;
(iii) the goods procured by the zone unit or developer
under clauses (i) and (ii) shall be used by it for the purposes
of carrying out authorised operations in the zone only;
(iv) the capital goods or manufactured goods in export
oriented undertaking or software technology park unit or
electronic hardware technology park unit so transferred under
clauses (i) and (ii) to the zone unit shall be considered as
imported goods for zone unit for all purposes.
12. Transfer of goods from one zone unit to another zone
unit in the same zone or different zone.- A zone unit may procure
goods including capital goods or manufactured goods from another
zone unit located in the same zone or in another zone, subject to
following conditions, namely:-
(i) the receiving zone unit shall file bill of entry for
home consumption in quintuplicate giving therein, complete
description, model, make, specifications, purpose of import of
goods, nature of goods such as capital goods, raw materials,
spares, consumables, alongwith a invoice, packing list with the
customs authorities in the zone, having jurisdiction over such
unit;
(ii) on the basis of such assessed bill of entry, the goods
shall be allowed to be removed or transferred to the receiving
zone unit under transshipment permit;
(iii) there shall be no requirement to file any additional
documents for the purpose of transshipment of goods and the
transshipment permission shall be stamped on the bill of entry
itself;
(iv) the supplying zone unit shall submit the
re-warehousing certificate to the proper officer having
jurisdiction over the such supplying unit within a period of
forty five days, failing which the jurisdictional proper officer
of the supplying zone unit shall write to the jurisdictional
proper officer of the receiving zone unit for demand of duty from
the receiving zone unit;
(v) Notwithstanding anything contained in clause (1), in
case where supplying and receiving zone units are located in the
same zone, the movement of goods including raw materials shall be
allowed subject to maintenance of accounts by both receiving and
supplying zone unit and no bill of entry shall be required to be
filed with the customs authorities in the zone.
13. Export of goods by special economic zone
unit.-
(1) Any goods manufactured, produced, reconditioned,
re-engineered, imported or procured by the zone unit, as the case
may be, as per the terms and condition of Letter of permission,
may be exported out of India through airport or port or inland
container depot, or land customs station or by post or courier or
personal carriage, as the case may be, subject to the following
conditions, namely:-
(i) the zone unit shall file shipping bill in quadruplicate
with customs officers in the zone, giving therein complete
description of goods such as model, make, serial number,
specification, alongwith relevant documents, namely, invoice,
packing list, GR Form (in duplicate) for noting;
(ii) the shipping bill shall be assessed by the customs
officers in the zone in the manner and procedure as is followed
in case of normal exports;
(iii) the goods shall not be examined in routine and Let
Export Order may be given on the basis of self certification by
the zone unit ;
(iv) notwithstanding anything contained in clause (iii),
during the transit of goods from the zone to the gateway port or
at the gateway port, airport, or land customs station itself, the
goods may be examined by the customs officers as per the norms
prescribed by the Board from time to time ;
(2) The zone unit may export goods by post subject to the
normal procedure applicable to export through Foreign Post
Office.
14. Export by software unit though data
communication link or by providing on site services.-
(1) The
zone unit engaged in software sector may be permitted to export
software or processed data or data analysed including call centre
services via data link, internet, e-mail or through other
electronic mode and Softex Form duly certified by the Development
Commissioner of the zone as per Foreign Exchange Management
(Export of Goods and Services) Regulation, 2000, is submitted to
the customs authorities in the zone within a period of one month
from the date of such exports.
(2) The zone unit engaged in export of services including
software may be permitted to provide consultancy services "on
site" abroad subject to submission of details regarding the
contract or purchase order, foreign exchange remitted and the
persons deputed abroad, to the customs officers in the zone.
(3) The consultancy fee received by the zone unit for
providing on site consultancy services in convertible foreign
exchange shall be deemed to be export for the purposes of Net
Foreign Exchange Earning.
15. Export by gems and Jewellery through
Personal Carriage.- (1) Where the zone unit is engaged in
manufacture and export of gems and jewellery, the zone unit may
be allowed to export goods to be carried by the foreign bound
passenger in their personal baggage, subject to the following
conditions, namely:-
(i)the zone unit shall submit the shipping bill, invoice, GR-I
with the customs officers in the zone;
(ii) the shipping bill shall be assessed by the customs
officers in the zone in the same manner as is done in the case of
normal exports;
(iii) the goods shall be transferred from the zone to the
airport under the cover of assessed shipping bill by the
authorized agency approved by the Commissioner of Customs having
jurisdiction over the zone under customs escort of the zone;
(iv) at the airport, the consignment shall be deposited
with the warehouse in the airport against a "Detention Receipt"
issued by the Customs officers at the airport;
(v) the consignment shall be handed over to the authorised
passenger at the time of departure on submission of original
Detention Receipt;
(vi) the zone unit shall submit the proof of export issued
by the Customs officer at the airport of export within a period
of seven days from the date of removal of goods from the zone to
the customs in the zone.
16. Export of goods by gems and jewellery unit
through display and sale at showrooms at international
airports.- The zone unit engaged in manufacture and export of
gems and Jewellery, shall be allowed to take gems and jewellery
for display in the showrooms set up at Departure Lounge at
International Airports in India for sale to passenger leaving
India subject to such conditions and procedure as may be laid
down by the Commissioner of Customs having jurisdiction over the
zone.
17. Export for participation in exhibition
abroad.- (1) The zone unit shall be allowed to export goods
including gem and jewellery for display or participating in
exhibitions abroad in terms of the Export and Import Policy
subject to following conditions, namely:-
(i) the zone unit shall obtain the permission of
Development Commissioner of the zone allowing the zone unit to
participate in the exhibition abroad;
(ii) shipping bill alongwith relevant documents shall be
filed with the customs in the zone in the same manner and
following the same procedure as applicable to normal exports;
(iii) exports shall be allowed by the customs officers in
the zone on provisional basis after examination of the goods;
(iv) the goods unsold in the exhibition shall be imported
within such period as it is stipulated in the Export and Import
Policy;
(v) the zone unit shall file bill of entry for unsold goods
as required in case of normal imports and it shall be assessed in
the same manner and subject to same procedure as applicable to
normal imported goods;
(vi) the re-imported goods shall be allowed admission free
of duty in the unit subject to establishment of identity of the
goods with reference to the attested export documents and
finalize the provisional assessment accordingly;
(vii) the zone unit shall submit proof of inward remittance
in respect of goods sold during exhibition abroad.
18. Export through courier.- In cases where the
zone unit exports goods through couriers, such exports shall be
allowed only through authorised courier, registered with the
Commissioner of Customs having jurisdiction over the gateway
airport and the procedure specified in the Courier Export and
Import (Clearance) Regulations, 1998 shall be followed for this
purpose.
19. Export of goods by the zone unit through
merchant exporter. -
The zone unit may export goods through
third party in accordance with the Export and Import Policy
subject to the following conditions, namely:-
(i) the goods shall be exported directly from the zone;
(ii) export document shall contain the name of the merchant
exporter and zone unit;
(iii) merchant exporter at the time of assessment of
shipping bill in the zone shall submit a disclaimer that no
export benefit is being or shall be availed by him.
20. Exchange of plain Jewellery with unit in
domestic tariff Area.- The zone unit engaged in manufacture and
export of gems and jewellery shall be permitted to receive plain
gold or silver or platinum jewellery from domestic tariff area
gems and jewellery unit in exchange of equivalent content of gold
or silver or platinum contained in the said jewellery; and such
exchange shall be allowed only after appraisement of the
jewellery as well as precious metals by jewellery appraiser in
the zone.
21. Removal of goods from a zone unit to an
export oriented undertaking or software technology park unit or
electronic hardware technology park unit .-
(1) The proper
officer may permit a zone unit to transfer goods to an export
oriented undertaking or software technology park unit or
electronic hardware technology park unit, as the case may be,
without payment of duty for the purpose of manufacture and
export, or for export or for use within the unit subject to the
following conditions, namely:-
(i) the zone unit shall make such transfer against the
procurement certificate issued by the proper officer in charge of
receiving export oriented undertaking or software technology park
unit or electronic hardware technology park unit, as the case may
be;
(ii) a warehousing bill of entry shall be filed by the
export oriented unit or software technology park unit or
electronic hardware technology park unit or by the supplying
special economic zone unit on behalf of the receiving export
oriented unit or software technology park unit or electronic
hardware technology park unit, as the case may be, with the
officer of the customs authorised in this behalf by the proper
officer the zone;
(iii) export oriented undertaking or software technology
park unit or electronic hardware technology park unit shall
submit re-warehousing certificate duly signed by the proper
officer, having jurisdiction over the receiving export oriented
undertaking or software technology park or electronic hardware
technology park unit within a period of forty five days from the
date of clearance, to the officer of the customs authorised in
this behalf by the proper officer of the zone;
(iv) where export oriented undertaking or software
technology park unit or electronic hardware technology park unit
fails to submit the re-warehousing certificate within a period of
forty-five days from the day of clearance of goods, officer of
the customs concerned in the zone shall take up the matter with
the jurisdictional proper officer of the receiving unit, to
initiate recovery proceeding against such export oriented
undertaking, software technology park unit or electronic hardware
technology park unit, as the case may be;
(v) where goods admitted into zone unit from domestic
tariff area, on which benefit under duty exemption pass book
scheme or duty draw back has been availed, are removed as such or
after subjecting it to a process not amounting to manufacture, to
an export oriented undertaking or software technology park unit
or electronic hardware technology park unit directly by the zone
unit or through any unit in the same zone or another zone, the
duty equal to benefit availed under duty exemption pass book
scheme or duty drawback shall be liable to be paid.
22. Sale of goods by a zone unit in domestic
tariff area.-
(1) The zone unit shall be allowed to sell goods
manufactured or produced in the zone unit including reject waste,
scrap remnants and by-products arising out of such production, in
the domestic tariff area on payment of customs duty in terms of
clause (b) of section 76F of the Act.
(2) The zone unit engaged in trading activities shall be
allowed to sell imported or indigenously procured goods in
domestic tariff area on payment of duty under clause (b) of
section 76F of the Act subject to the condition that the zone
unit has achieved positive Net Foreign Exchange Earning
cumulatively at the time of making sale in domestic tariff area
and such sale of goods shall be allowed to the extent that Net
Foreign Exchange Earning of the unit remain positive.
(3) Domestic tariff area unit intending to buy goods from
the zone unit shall be required to file bill of entry for
home-consumption giving therein complete description of the goods
such as make, model number, serial number, specification,
alongwith invoice and packing list with the customs officers in
the zone.
(4) Notwithstanding anything contained in sub-regulation
(3), the bill of entry for home consumption may also be filed by
the zone unit on the basis of authorization by buyer located in
domestic tariff area.
(5) The valuation of the goods cleared into domestic tariff
area shall be determined in accordance with section 14 of the Act
and rules made thereunder.
(6) Where the goods so procured from domestic tariff area
by the zone unit are supplied back to the domestic tariff area
as it is or without substantial processing, such goods shall
be treated as re-imported goods and shall be subject to such
procedure and conditions as applicable in the case of normal
re-import of goods from outside India:
Provided that in the case where such goods are
supplied back to the domestic tariff area as it is and where the
import duty on such goods is ''Nil" and while procurement of
such goods no export benefits were allowed against such goods,
the zone unit may be allowed to supply back such goods to
domestic tariff area on the basis of invoice only and filing of
bill of entry in such cases shall not be required.
Explanation.- For the purpose of this regulation
"export benefits" includes drawback, duty entitlement passbook
scheme, rebate, advance license or counting of proceeds as export
earnings or counting of proceeds as fulfillment of export
obligation under any scheme.
(7) Where the zone unit has surplus power generated in its
captive power plant or diesel generating set, such surplus power
may be allowed to be transferred to domestic tariff area on
payment of duty on consumables and raw materials used for
generation of power so sold on the basis of norms worked out for
raw materials and consumables used, as may be approved by the
Board of Approvals subject to the following conditions, namely:-
(i) the proposal for sale of surplus power received in the
office of the Development Commissioner shall be examined in
consultation with the concerned State Government including State
Electricity Boards of that State;
(ii) the norms for production of unit of power that may be
finalized shall be submitted to the Board of Approval for
consideration;
(iii) in case of sale of surplus plus to other unit in the
same zone or other zone or to other export oriented undertaking
or to electronic hardware technology park unit or to other
software technology park unit, as the case may be, the same shall
be allowed without payment of duty:
Provided that the quantity of consumables and raw materials
used for generation of power so transferred to another special
economic zone unit or export oriented undertaking, electronic
hardware technology park unit or software technology park unit,
as the case may be, as quantified and approved by the Board of
Approvals is accounted for by the supplying as well as receiving
units for the calculation of Net Foreign Exchange Earning.
23. Removal of scrap or dust by gems and
jewellery zone unit.- (1) The zone unit engaged in the
manufacture and export of gem and jewellery shall be allowed to
send gold or silver or platinum scrap, dust or sweepings
generated in such unit to the Government Mint or Private Mint for
conversion into standard gold bars and return thereof to the zone
following the procedure laid down by the Customs officers in this
regard.
(2) The gold or silver or platinum dust, scrap or sweepings
may also be allowed to be cleared into domestic tariff area on
payment of duty on the gold or silver or platinum content in the
said scrap, dust or sweepings, in accordance with the provision
of clause (b) of section 76F of the Act:
Provided that the samples of such gold or silver or
platinum sweepings, scarp or dust shall be taken at the time of
clearance and sent to Government Mint or Private Mint for
assaying and assessment shall be finalised on the basis of
reports received from the Government Mint or Private Mint, as the
case may be.
24. Temporary removal of goods by a zone unit
into the domestic tariff area for specified purposes without
payment of duty.- (1) Subject to the grant of permission and
fulfillment of such condition as may be imposed by the proper
officer, the zone unit shall be allowed to remove goods
manufactured or produced including imported or procured capital
goods to domestic tariff area temporarily without payment of duty
for the purpose of test or repairs or calibration or
re-engineering or re-conditioning in the domestic tariff area:
Provided that the identification marks such as make, model,
seal number, specification of the goods received back after such
test, repair, calibration or re-engineering or re-conditioning
matches with those mentioned in the repair challan prepared and
countersigned by the customs officers in the zone at the time of
taking capital goods into domestic tariff area:
Provided further that goods shall be brought back to the
zone within a period of forty-five days from the date of taking
the goods out of the zone:
Provided also that the proper officer of the zone may, if
he thinks proper, extend the said period of forty-five days upto
further period of two months.
(2) In case of failure of the zone unit to bring back the
goods in the zone within the period specified in sub-regulation
(1), the zone unit shall pay the duty applicable on such goods in
term of provision of clause (b) of section 76F of the Act.
(3) Subject to the provisions in sub-regulations (1) and
(2), the zone unit shall be allowed to take goods including
capital goods to another unit in the same zone or in another
zone, or export oriented undertaking unit or electronic hardware
technology park unit or software technology park unit, as the
case may be, for the purpose of test or repairs or calibration or
re-engineering or re-conditioning.
(4) The zone unit, engaged in development of software or
otherwise, shall be allowed by the proper officer to take lap top
computers and video projection system out of the zone temporarily
for use by the authorised employees of such unit subject to the
following procedure, namely:-
(i) the zone unit shall account for the laptop computers or
video projection system in their inventory after import or local
procurement;
(ii) the zone unit shall issue a certificate authorising
the employee by name and giving the full specification, such as
serial number, model number, make etc., of the laptop computers
and video projection system intended to be taken outside the
bonded area temporarily and a copy of the certificate shall be
endorsed to the proper officer and acknowledgement received by
the unit;
(iii) the zone unit shall be required to maintain a record
of such certificate of authorization issued under clause (ii) for
temporarily taking out or bringing in such unit the laptop
computer or video projection system and the same shall be made
available at the time of inspection by the customs officers
having jurisdiction over the zone.
(5) Subject to such condition as the proper officer of the
zone may specify and subject to such procedure, as may be laid
down by the proper officer of the zone from time to time, the
zone unit shall be allowed to take limited quantities of goods
manufactured or produced into domestic tariff area without
payment of duty for the purpose of display, market promotion,
export promotion, exhibition and return thereof within the period
of time as specified by such proper officer of the zone:
Provided that in case of failure of the zone unit to
bring back the goods in the zone within the period as specified
in this behalf by the proper officer, the zone unit shall pay the
duty applicable on such goods under the provisions of clause (b)
of section 76F of the Act.
25. Sub- contracting of production or production
process in domestic tariff area or abroad by the zone unit.-
(1)
The zone unit shall be permitted to take goods including inputs,
semi-finished or semi-processed goods to the job-worker"s
premises into domestic tariff area without payment of duty for
further processing of the goods or to carry out a production,
subject to the following conditions, namely:-
(i) the zone unit shall file an application containing the
name and address of the job-worker, Central Excise registration
number of the job-worker, if registered with the Central Excise
Department, processing capacity of the job-worker, details of the
processes to be carried out by the job-worker, justification for
processing of goods outside the bonded premises and any other
relevant information before the proper officer for further
processing of the goods or to carry out production;
(ii) the proper officer may, after examining the
application and after satisfying himself about the bonafide
requirement of the zone unit, grant permission for job-work and
such permission shall normally be valid for a period of one-year.
However considering the sensitive nature of the commodities to be
sent out for job-work and past record of the zone unit, such
permission may be less than said period of one year;
Provided that in case of zone unit engaged in manufacture
and export of gem and jewellery, no cut and polished diamonds,
precious stones and semi-precious stones shall be allowed to be
taken out of the zone;
(iii) while considering the application of the zone unit,
the entire processing activity in relation to the manufacture of
the export products by the said units may be studied, and the
proper officer may ensure that there is no attempt to parcel out
the entire manufacturing operations outside the bonded premises;
(iv) in respect of activities permitted to be carried out
on job-work basis outside the premises of the zone unit, identity
of finished products received after job work shall be established
with the raw materials or components or partially processed goods
sent out to ensure that the finished products are manufactured
out of raw materials imported or procured duty free by the units
or admitted under claim of duty drawback or duty entitlement
passbook scheme credit into the zone unit and there is no
substitution or diversion of such goods in the domestic tariff
area:
Provided that in case of zone unit engaged in manufacture
and export of gem and jewellery, there shall be no requirement of
taking out the samples or retaining the same if such goods have
been appraised by jewellery appraiser at the time of both taking
out of such goods from the zone or receiving back of goods in the
zone after completion of job-work:
Provided further that where the precious metal in bullion
form, having marking regarding fineness, purity, make, serial
number, is being taking out of the zone for the purpose of
job-work, appraisement by jewellery appraiser shall not be
mandatory;
(v) the zone unit sending out goods for job work in
domestic tariff area shall be required to give an intimation to
the proper officer and a sample of the goods being sent out for
job work shall be drawn and retained in the office of the proper
officer in the zone;
(vi) on receipt of the goods in the zone unit after job
work, the Customs officers of the zone shall establish the
identity of the goods so returned with reference to the sample
retained by him at the time of removal and a sample of the
processed goods so returned to the zone shall be retained for the
purpose of record for a period of six months and both the samples
shall be returned to the zone unit after obtaining an
acknowledgement from the zone unit;
(vii) the zone unit sending out imported or domestically
procured raw materials, components, etc. as it is, i.e without
any processing in the unit for job work in the domestic tariff
area, shall furnish bank guarantee to cover the duty forgone on
such duty free materials being taken out to the proper officer:
Provided that no such bank guarantee shall be required
in case of status holder zone unit having an unblemished track
record or a unit which has not come to the adverse notice of
Customs authorities at least for a period of last two years.
(viii) the zone unit removing semi processed goods for job
work in domestic tariff area shall furnish bank guarantee
equivalent to fifty per cent. of the duôy payable on the goods
being taken out for job work:
Provided that no fresh or additional bank guarantee shall
be insisted upon if the zone unit has furnished a bank guarantee
as security along with bond in Form-I, and the same is sufficient
to cover the duty payable on such goods being taken out:
Provided further that no such bank guarantee shall be
furnished by the status holder zone unit having an unblemished
track record or a unit which has not come to the adverse notice
of Customs authorities at least for a period of last two years ;
(ix) in all cases of job work in domestic tariff area, the
goods sent out for job work shall be required to be returned to
the zone unit within a period of ninety days or such period as
may be extended by the proper officer for reasons to be recorded
in writing for granting such extension, from the date of removal
and in case of failure to receipt of goods within the said
period, action shall be taken by the proper officer to recover
duty, such as, encashment of the bank guarantee given at the time
of removal of goods into domestic tariff area for job work;
(x) the proper officer shall carry out the checks
expeditiously to verify the premises of the job worker,
processing capacity of the job worker, existence of facility for
carrying out the declared process in the job worker"s premises
within a period of one month from the date of granting permission
for job work by either visiting the premises of the job worker by
himself or the officer authorised by him in this behalf or by
letters or fax or E-Mail to the concerned Range officer having
jurisdiction over job worker"s premises and getting report in
writing;
(2) The zone unit shall be allowed to sub-contract
production in domestic tariff area subject to the following
conditions, namely:-
(i) the proper officer shall satisfy himself regarding the
bonafide necessity of such sub-contracting of production in
domestic tariff area and shall not allow such permission in
routine manner to the zone unit;
(ii) while giving permission for subcontracting of
production in domestic tariff area or in other export oriented
undertaking or software technology park unit or electronic
hardware technology park unit or zone unit, the proper officer
may verify the past antecedents of the zone unit as well as
job-working units, and in case of any misuse of serious nature
noticed by him in the past or due to any other reasons, where it
is satisfied that there is no justification for such permission
or there are high chances of abuse of such facility, such
permission may be denied with the approval of Commissioner of
Customs having jurisdiction over the zone;
(iii) the facility of sub-contracting of production shall
be allowed subject to the condition that the product is also
being manufactured by the zone unit in the zone ;
(iv) in case of zone unit engaged in manufacture and export
of gem and jewellery, no cut and polished diamonds, precious
stones and semi-precious stones shall be allowed to be taken out
of the zone;
(v) other conditions as stipulated in sub-regulation (1)
except clause (viii), shall apply mutatis mutandis in case of
sub-contracting of production in domestic tariff area.
(3) Subject to permission of the proper officer, the zone
unit shall be allowed to remove moulds, jigs, tools,
fixtures, tackles, instruments, hangers, patterns and drawings to
the job-worker's premises in the domestic tariff area without
payment of duty and shall be allowed to keep such moulds,
jigs, tools, fixtures, tackles, instruments, hangers, patterns
and drawings in the job-worker's premises till the
sub-contracting arrangement with job worker is in
existence, subject to the following conditions,
namely:-
(i) the zone unit shall produce to the proper officer
a verification report quarterly obtained from the
jurisdictional Superintendent of Central Excise having
jurisdiction over the of job-worker's unit to the effect that
such moulds, jigs, tools, fixtures, tackles, instruments,
hangers, patterns and drawings are lying in the job-worker's
premises and are being used for production of goods for
export on account of zone unit;
(ii) the zone unit shall bring back such goods to the
unit immediately on expiry of such job work contract; and
(iii) such moulds, jigs, tools, fixtures, tackles,
instruments, hangers, patterns and drawings shall be
returned to the zone unit within a period of one year
from the date of such removal where the job-worker's unit is not
registered with Central Excise Department.
(4) The zone unit shall be allowed to sub-contract part of
the production process abroad, that is outside India following
the provisions of Export and Import Policy in this regard, and
after such processing abroad, the goods shall either be returned
to the zone unit for carrying out further processing or may be
sold to buyers in that country or any third country:
Provided that the scrap or waste or remnants generated at
the sub-contractors premises abroad may either be returned to the
zone unit; or may be disposed of abroad itself:
Provided further that in case of sale of goods processed
abroad or scarp, waste or remnants arising during the processing
of goods abroad, directly from the job-workers premises abroad,
the unit shall take permission from the Reserve Bank of India.
(5) The proper officer may permit the zone unit to export
the finished goods directly from the job-worker"s premises
subject to the following conditions, namely:-
(i) the job-worker, who is registered with the Central
Excise Department;
(ii) export of finished goods from the job-worker"s
premises shall not be allowed through third party;
(iii) sample of goods exported from the job-workers
premises shall be sent to the proper officer in the zone for
establishing the identity of the goods exported with the sample
drawn at the time of taking out of the goods to the job-worker;
(iv) in case of such exports, the shipping bill for duty
free goods shall be processed at the port of export as in the
case of normal export and shipping bill shall be filed in the
name of the zone unit;
(v) the goods for such export shall be removed from the
job-worker"s premises under bond.
(6) The waste or scrap or remnants generated during such
processes at the job-worker's premises shall either be returned
to the zone unit or shall be cleared on payment of duty as if the
said waste or scrap or remnants have been cleared by the zone
unit or may, where the job worker is a Central Excise
Registrant , be destroyed at the job worker's premises and such
destruction shall be carried out under supervision of a central
excise officer having jurisdiction over the job worker's unit
and proof of such destruction duly certified by such Central
Excise officer shall be submitted to the officer of the customs
who is in charge of the zone.
(7) The zone unit engaged in trading shall not be allowed
the facility of sub-contracting of production or production
process in domestic tariff area.
26. Sub-contracting of production process for domestic
tariff area unit in the zone unit for export.- The zone unit
shall be allowed to undertake job-work for export on behalf of
domestic tariff area unit, subject to the following conditions,
namely :-
(i) the semi-finished goods or raw materials shall be
supplied by domestic tariff area unit to the zone unit;
(ii) no export benefit shall be claimed by the domestic
tariff area unit on such semi-finished goods or raw materials
supplied to the zone unit for job-working;
(iii) the finished goods shall be exported directly from
the zone unit on behalf of domestic tariff area unit;
(iv) the export document shall be in the name of domestic
tariff area unit;
(v) the value of such goods shall not be counted towards
achievement of Net Foreign Exchange Earning of the zone unit; and
(vi) the unit in domestic tariff area shall not be eligible
for all industry rate of drawback or duty entitlement passbook
scheme credit.
27. Removals of samples from the zone unit.-
(1)
Subject to the provisions of Export and Import Policy, the zone
unit shall be allowed to take out the samples of the goods
manufactured or produced by it into domestic tariff area for the
purposes of display or market promotion on payment of duty as per
the provision clause (b) of section 76F of the Act or for the
purposes of export without payment of duty.
(2)
Where samples of the goods manufactured or produced are to
be taken into domestic tariff area on payment of duty, the
procedure as laid down in regulation 21, shall apply except that
the bill of entry shall be filed by the zone unit.
28. Destruction of goods imported including
capital goods or goods manufactured or produced by the zone
unit.-
(1) Subject to the procedure specified in regulation 22,
where any scrap, waste or remnants arises out of destruction of
goods in terms of rule 12 of the Special Economic Zone Rules,
2003, the zone unit shall be permitted to take the same into
domestic tariff area on payment of duty applicable to such scrap
and remnants as per the provision of clause (b) of section 76F of
the Act.
(2) Where any goods procured from domestic tariff area
under claim of duty drawback or duty entitlement passbook scheme
credit or under any export promotion scheme are destroyed due to
natural calamities , the zone unit shall be required to pay duty
drawback or duty entitlement passbook scheme credit claimed on
such goods:
provided that in case where the zone unit has
procured the goods from domestic tariff area against payment of
foreign exchange, the zone unit shall not be liable
to pay back duty drawback or duty entitlement passbook
scheme credit or any export incentive claimed on such
goods.
29. Security.- (1) On the basis of the Letter of
Permission issued by the Development Commissioner of the zone,
the zone unit shall execute a bond with the proper officer, in
the Form I as annexed to the Special Economic Zone Rules, 2003
and such surety or security shall be given as per procedure
specified hereinafter in this regulation.
(2) The bond, in respect of a limited company, shall be
executed by the Managing Director of the company or the
Director(s) who have been duly authorised for this purpose by a
resolution of the Board of Directors of the Company and shall be
affixed with the common seal of the company.
(3) Where the unit is a partnership firm, the Bond shall be
executed by the all the partners of the unit.
(4) The bond amount shall be equal to the twenty five per
cent. of the duty leviable on the imported and
indigenous capital goods plus duty forgone on raw materials to be
held in stock for three months by the zone unit.
(5) The zone unit shall furnish surety for the bond amount
or furnish five per cent. of the bond amount as bank guarantee or
any other security as approved by the Central Government and in
case of surety, the solvency of sureties shall be certified by
any Chartered Accountant or the Banker of the Surety, as the case
may be.
(6) The Directors or Members of the limited company may
stand as surety in their personal capacity for the company and
other corporate bodies included limited companies may also stand
as surety for the unit.
(7) Notwithstanding anything contained in sub-regulation
(5), where the zone unit have a turnover of rupees one crore or
above, or where the zone unit is in existence for
more than a period of three years with an unblemished track
record, such unit shall not be required to furnish surety or
security.
(8) Where the value of the bond executed with the custom
officers is initially worked out on the projected value of goods
imported and the value of such bond falls short of duty forgone
on goods admitted duty free in the unit, then the unit shall be
required to submit a revised bond and furnish additional security
or surety, as the case may be, and in case of sub-contracting of
production process or production in domestic tariff area, if the
security given with the bond is not sufficient to cover duty
leviable on goods being taken into domestic tariff area, the unit
shall be required to give additional security.
(9) The bond shall be a running bond and shall be debited
for an amount equal to duty forgone on the goods imported
or procured by the zone unit, and credited for an
amount equal to duty forgone on the raw materials used in the
manufacture of finished products where such manufactured goods
are either exported or cleared into domestic tariff area on
payment of duty or for such imported or procured goods when
exported as such or cleared into domestic tariff area on payment
of duty as per the provisions of the Act or rules and
regulations, made there under and such debiting and
crediting of bond shall be done once at the end of every
three months."
(10) In respect of the capital goods or infrastructure
materials, surety or security shall not stand discharged on
arrival of the capital goods or infrastructure materials within
the unit and the surety or security shall not be discharged as
long as the capital goods are in the zone unit or the capital
goods of the unit are not debonded.
(11) The duty for debiting the bond amount in respect of
capital goods or infrastructure materials or raw materials shall
be as per the duty foregone amount given in the bill of entry or
shipping bill, as the case may be.
(12) After execution of the bond, the proper officer shall
retain the original copy of the bond and provide a certified copy
to the unit for its record.
(13) Notwithstanding anything to the contrary, in case the
zone unit is engaged in manufacture and export of gem and
jewellery, the effective rate of duty as specified in
notification No 80/97-Customs of the Government of India in the
Ministry of Finance ( Department of Revenue), dated 21st October,
1997, shall be taken instead of tariff rate of duty, for the
purpose of calculation of bond amount in case of import of gold
or silver.
30. Monitoring of performance.-
Performance of the zone unit shall be monitored by the Unit
Approval Committee in which the Commissioner of Customs
having jurisdiction over the zone or his nominee shall be a
member
31. Disposal of obsolete or surplus goods.- (1)
The zone unit shall be allowed to dispose of obsolete or unusable
capital goods, spares and other goods in the domestic tariff area
on payment of customs duty as per provisions of clause (b) of
section 76F of Act following the conditions mentioned in the
Export and Import Policy and the provisions of ITC(HS)
Classification of Export and Import Items Book as applicable in
case of goods imported into India.
(2) In case of used capital goods, depreciation shall be
allowed in terms of sub-rule (1) of rule 9 of the Special
Economic Zone Rules, 2003.
32. Co-relation of import consignment with
corresponding export consignment.- The zone unit using
homogenous material may be allowed to adopt "First-in-First-Out"
arrangement and a consignment which has been received first, may
be deemed to have been utilised first for this purpose, and in
such cases, co-relation of every import consignment with the
corresponding export consignment may not be required.
33. Import and procurement of goods by
developer.- (1) The developer shall be allowed to import or
procure the goods from domestic tariff area without payment
of duty for the purpose of development, operation and maintenance
of the zone, subject to following conditions, namely :-
(i) the activity of the developer shall be approved by the
Board of Approvals;
(ii) the developer shall submit a list of machinery,
equipments and the construction material required for
development, operation and maintenance of the zone, duly
certified by a chartered engineer ;
(iii) the developer shall make an application to the
concerned Development Commissioner for approval of the list of
goods alongwith the certificate of the chartered engineer
referred to clause (ii) , proposed to be imported or procured
duty free for the purposes of the activity as approved by the
Board of Approvals;
(iv) the developer shall submit to the Development
Commissioner the proof of the ownership of concerned land,
encumbrances certificate relating thereto, or in case the land is
acquired on lease at least for a period of twenty years in his
favour, the proof of such lease;
(v) on the basis of approval of the Development
Commissioner, the proper officer having jurisdiction over the
zone may allow the developer to import or procure goods with out
payment of duty;
(vi) the goods shall be stored in the premises appointed or
licensed as public warehouse or private warehouse under section
57 or section 58 of the Act;
(vii) the developer shall maintain proper account of
import or procurement, consumption and utilisation of the goods
and submit quarterly return to the proper officer having
jurisdiction over the zone in such form, as may be specified by
such proper officer ;
(viii) the developer shall execute a bond in Form II as
annexed in the Special Economic Zone Rules, 2003 with the proper
officer having jurisdiction over the zone , binding himself to
utilise the goods within a period of six months or such period,
as may be extended by such proper officer , and if the developer
fails to do so, then the developer shall pay on demand an amount
equal to the duty as leviable on the said goods alongwith
interest at the rate of fifteen per cent. per annum on the said
duty from the date of import or procurement of said goods ;
(ix) the developer shall not remove the goods from the zone
except with the permission of the proper officer having
jurisdiction over the said zone and on payment of duty
applicable on such goods;
(x) no goods, other than which are required for the
purposes of construction, development, operation, maintenance of
the zone or for providing utilities in the zone, shall be allowed
admission in the zone without payment of duty;
(xi) the developer shall produce, a certificate of
utilisation of the goods from an independent chartered engineer
other than who has given a certificate for the purpose of
clause(ii), to the proper officer having jurisdiction over the
zone on every six months of importation or procurement of the
goods ;
(xii) the procedure for import or procurement of goods as
applicable to the zone unit shall apply mutatis mutandis in
case of developer of the zone except that in case of developer,
the goods imported or procured from domestic tariff area shall be
allowed to be moved or utilised for the purposes of authorised
operations in the non-processing area of the zone.
Explanation.- For the purposes of this regulation, it is
clarified that all approvals or permissions or
extensions for utilisation to be given by or other
functions to be discharged by the proper officer under this
regulation shall be exercised by the Deputy Commissioner of
Customs or Deputy Commissioner of Central Excise or Assistant
Commissioner of Customs or Assistant Commissioner of Central
Excise , as the case may be , posted under the Commissioner of
Customs or Commissioner of Central Excise, as the case may be,
having jurisdiction over the zone during only l such time
when a regular Deputy Commissioner of Customs or Assistant
Commissioner of Customs, as the case may be, is not
posted in the zone.
(2) The application mentioned in clause of sub-regulation
(1) shall be submitted by the developer to the concerned
Development Commissioner of the zone and the Development
Commissioner after processing of the application, shall forward
such application alongwith relevant documents to the Committee of
Approval, for consideration.
(3) The approval for duty free import or procurement shall
be given to the developer only in respect of such goods which are
required for construction, maintenance and operation of the zone.
(4) When an application is submitted for approval of
additional items, the Committee of Approval shall determine such
additional requirement taking into account quarterly statement
submitted by the developer.
(5) The Committee of Approval shall fix the time schedule
for commencement and completion of the construction of the zone
and in case of delay in the completion of the project, the
developer of the zone shall explain the reasons of such delay to
the Committee of Approval.
(6) The Committee of Approval may direct the developer to
get the account audited by a Cost Accountant as nominated by
Committee of Approval in this behalf.
(7) The procedure for import or procurement of goods as
applicable to the zone unit shall apply mutatis mutandis in case
of developer of the zone except that in case of developer, the
goods imported or procured from domestic tariff area shall be
allowed to be moved or utilised for the purposes of authorised
operations in the non-processing area of the zone.
Explanation.- For the purposes of this regulation, the
Committee of Approval shall consist of following persons,
namely:-
(i) Commissioner of Customs or Commissioner of Central
Excise, as the case may be having jurisdiction over the zone-
Chairman.
(ii) Development Commissioner of the Zone- Member.
(iii) Joint Director General of Foreign Trade-Member.
(iv) The Chief Engineer of Central Public Works Department-
Member.
(v) Jurisdictional Deputy Commissioner of Customs or
Assistant Commissioner of Customs having jurisdiction over the
zone- Member.
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Annexure-I
Form Domestic Procurement Certificate
Certificate for removal of goods under bond
This is to certify that-
(1) Mr/ M/s-------------------(
Name and address) is / are a bonafide unit in the special
economic zone holding Letter of Permission No------ valid
upto-------
(2) That he / they has executed a bond No----
date------ for Rs ---------with the Assistant Commissioner or
Deputy Commissioner of Customs of the special economic
zone and as such may be permitted to receive
--------(quantity) of ------------------------------------(
excisable goods )(please mention the complete description
of the goods such as make, model number, serial number,
specification of the goods) from the unit
at----------( name and address of the supplying unit at domestic
tariff area) to his/ their unit ----------- at-----------------
(3) That the specimen signatures of his/
their authorized agent, namely, shri------------------------ are
furnished below and is duly attested
Specimen signature of the owner or his authorised agent
|
Attested
Sd/-
|
Signature with seal of the Superintendent/ Appraise of
Customs of the Special Economic Zone".
|
|