SEZ-Online user charges revised, covering transaction, Softex, AMC and registration fees, now effective from the announced date.
Revised SEZ-Online user charges, effective from 15.11.2021, prescribe specified per-transaction charges for customs and transfer filings, per-invoice Softex form fees, annual maintenance charges differentiated for units and developers/co-developers, and one-time registration fees for units and developers/co-developers; the circular supersedes earlier departmental tariff communications.

Extension of Letters of Approval and co-developer approvals granted, subject to standard SEZ Act conditions and lease period instructions.
Approvals granted for extensions of Letters of Approval for multiple SEZ units, and for co-developer statuses permitting provision of infrastructure and management services under executed co-developer agreements; approvals and cancellations of co-developer LoAs were made subject to statutory compliance and Lease cum Development Agreements. A developer's area increase was approved conditionally, and industrial licences for manufacturing units were authorised with conditions on technology, pollution control, input sourcing, export obligation, and prescribed security and monitoring measures.

Reorganisation of SEZ entities requires continued operation, unchanged liabilities, and compliance with tax and regulatory reporting.
Reorganisations of SEZ developers, co developers and units - including name change, shareholding change, business transfers, court approved mergers/demergers, constitution or director changes - may be approved by the Unit Approval Committee only if the entity remains in the SEZ as a going concern and all liabilities remain unchanged. Such reorganisations must ensure continuity of SEZ activities, satisfy eligibility and security clearance requirements, comply with revenue and company/securities laws, furnish full financial details and PAN/jurisdictional assessing officer information to tax authorities, and remain subject to tax assessment of gains or losses arising from the transactions.

Transfer of SEZ space under Rule 74: independent valuation plus e-auction allocates space and secures asset payment to exiting unit.
Transfer of space under Rule 74 uses an independent valuation and e-auction process: the SEZ Authority engages an independent valuer to assess depreciated physical assets and unutilised portions of upfront lump-sum payments; an identified incoming buyer states lease rent, the Authority conducts an e-auction disclosing that rent, and the highest lease-rent bid wins unless the highest bid is lower than the identified buyer's indicated rent, in which case that buyer secures the space. The successful bidder must pay a predetermined amount equal to the valuer-assessed transfer value to be passed to the exiting unit, and the process must conclude within 100 days of a complete exit application.

Zero rating of IGST on services: labour for external cable installation qualifies for exemption as SEZ authorised operations.
The BoA at its 106th meeting approved and ratified multiple SEZ actions: extensions and refusals of LoAs; approvals of co developer status for infrastructure and services subject to SEZ Act/Rules and DoC Instruction No.98 lease periods; change of shareholding/name transfers conditioned on continuity of SEZ obligations, eligibility, disclosure to revenue authorities and tax assessment rights; ratification of procurement of restricted items subject to environmental compliance; approvals or deferrals for SEZ/FTWZ establishment, area changes and miscellaneous operational matters. The Board allowed an appeal confirming zero rating for labour services directly connected to authorised SEZ operations.

Recognition of GMP and GLP accredited laboratories for duty free transfers under Rule 50(3) reduces regulatory compliance burdens.
GMP and GLP accredited laboratories and institutions are to be accepted as recognized entities for duty free temporary transfer of goods for quality testing or R&D under Rule 50(3) of the SEZ Rules, 2006, and their accreditation certificates shall be accepted in lieu of separate recognition certificates required by the proviso to Rule 50(3).

SEZ approvals: extensions, shareholding changes and restricted procurement ratified with compliance and disclosure conditions.
The Board approved extensions of formal approvals and LoAs for multiple SEZ developers and units, authorised changes in names and shareholding subject to continuity of obligations, eligibility, security clearances and tax disclosure to CBDT, ratified procurement of restricted items (notably sand/soil) from DTA subject to actual use within SEZs and environmental compliance, granted co-developer statuses with standard SEZ terms, and made miscellaneous determinations including conditional exemptions for an IFSC unit, rejection of an export proposal for a restricted pharmaceutical, deferral of an industrial licence application and restoration of an LoA on appeal.

Online identity card application for Special Economic Zone stakeholders to be digitized with bulk upload and expedited issuance.
Digitize the identity card application by making Form K under rule 70 available online at zone-level portals with provision for individual submissions and bulk data upload; Development Commissioners must implement the online facility by the prescribed deadline, ensure identity cards are issued promptly upon complete online applications within the prescribed short timeframe, and submit an action taken report to the Department.

Change of developer status approved subject to continuity, statutory approvals, eligibility checks, tax disclosure and compliance obligations.
The Board approved or ratified extensions of LoAs, transfers of ownership, demergers and changes in developer/co developer status subject to statutory approvals and uniform conditions: continuity of SEZ activities, fulfilment of eligibility including security clearances, compliance with Revenue/Company/SEBI rules, immediate furnishing of financial details to CBDT and jurisdictional authorities, assessing officer's right to assess taxability under the Income Tax Act, and conformity with State land/lease laws. Procurement of restricted items like sand was permitted under Rule 27(1) on condition of actual SEZ use and adherence to environmental regulations. Revised policies for worn clothing and plastic recycling units prescribe renewal limits and export obligations, with plastic recycling LoAs extended for 18 months.

Restrictions on used clothing and conditional approval for plastic recycling units enforce export and environmental compliance.
Policy revises regulation of used/worn clothing and plastic recycling units in SEZs/EOUs. New used-clothing units are prohibited; existing units may seek five-year LoA renewals subject to NFE obligations and export thresholds by turnover and tonnage. Plastic recyclers' LoA renewals are time limited and subject to environmental clearance and statutory compliance; DoC and DGFT will propose rule and FTP amendments to permit new plastic recycling units. Both categories may clear goods to DTA and other SEZs/EOUs provided NFE and other conditions are met, but inter SEZ/EOU clearances do not count toward mandatory physical export obligations.

Change of shareholding approvals: altered SEZ developers must maintain continuity and comply with tax reporting and eligibility conditions.
The Board considered LoA extensions, approvals for changes in developer/co developer shareholding or identity, and co developer admissions, subject to conditions requiring seamless continuity of SEZ activities, fulfilment of eligibility and security clearances, compliance with revenue, company and securities rules, immediate furnishing of financial details to Member (IT), CBDT and jurisdictional authorities, and recognition of the Assessing Officer's right to assess taxability under the Income Tax Act; several matters were deferred or remitted to Development Commissioners or Unit Approval Committees for further action.

One-time customs inspection waiver: option to pay duty without physical inspection for debonding IT/ITES SEZ units.
Exiting IT/ITES SEZ units may opt to pay applicable customs duty without physical inspection of duty free goods if they furnish all relevant import and related documents to establish identity; this simplifies de bonding. For goods procured on payment of duty and supplied back to the domestic market after being procured from the domestic tariff area, movement may be on invoice only and filing of a Bill of Entry is not required. However, goods imported into the SEZ on payment of duty and later cleared into the domestic tariff area are treated as imports into the domestic tariff area and require a Bill of Entry.

Change of shareholding approvals in SEZs require continuity, statutory clearances, financial disclosures and tax assessment safeguards.
The Board approved multiple changes in SEZ developer/co-developer shareholding, transfers, demergers and limited LoA extensions subject to conditions requiring seamless continuity of SEZ activities, fulfilment of eligibility criteria including security clearances, compliance with Revenue/Company Affairs/SEBI rules, immediate furnishing of full financial details to CBDT and the jurisdictional authority, disclosure of PAN and jurisdictional assessing officer, and preservation of the Assessing Officer's right to assess taxability arising from equity transfers, mergers or demergers.