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22nd July , 2003.
Notification No. 53/2003-Customs (N.T.)
In exercise of the powers conferred by sub-section (1) of
section 157 read with sub-section (2) of section 76 C of the
Customs Act, 1962 (52 of 1962), the Board hereby makes the
following regulations, namely: -
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 the 15th day of
August, 2003.
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
permitted by the Commissioner of Customs 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;
- (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) Two or more zone units shall not operate from the
same premises.
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 etc.;
- (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 officers 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
etc. 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 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.
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 namely, 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
alongwith advance remittance certificate duly certified by the
bank, 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 subject to condition
that no wastage or manufacturing loss against such exchange of
jewellery shall be permissible; 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 manufactured or produced 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 capital goods or goods produced or manufactured by the
zone unit 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 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
park unit, as the case may be, with the customs officers in
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 Customs
officers in 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,
customs officers 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.
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 clause (4),
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.
- (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 may
specify and subject to such procedure, as may be laid down by
the Commissioner of Customs 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 or as the
case may be, the Commissioner of Customs:
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 substantial 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 unit having an unblemished track
record;
- (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 the no bank guarantee shall be
furnished by the status holder zone units having unblemished
track record;
- (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 only be limited to the extent of fifty per cent. of the
free on board value of physical export made in the previous
year subject to the condition that the product is also being
manufactured 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, tool,
fixtures, tackles, instruments, hangers, patterns and drawings
to the job-workers premises in the domestic tariff area without
payment of duty subject to the condition that such unit shall
bring back such goods to the unit on completion of such
sub-contracting within a period of six month from the date of
such removal.
- (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.
- (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 of
natural calamities, the zone unit shall be required to pay duty
drawback or duty entitlement passbook scheme credit 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 duty leviable
on the goods but for the goods admitted duty free in the zone
unit and the value of the goods shall be taken as per declared
value on the bill of entry at the time of admission of goods in
the zone.
- (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, 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 whenever there is fresh admission of duty free goods in
the unit. The value debited from the bond amount in respect of
raw materials shall be credited again when the raw material is
used in the manufacture of finished products and such
manufactured goods are either exported or cleared into domestic
tariff area on payment of duty as per the provisions of Act or
rules and regulations, as the case may be, made thereunder.
- (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
Commissioner of Customs having jurisdiction over the zone .
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.-
D. S. Garbyal
Under Secretary of the Government of India
F. No. 314/24/2001-FTT |
