EEFC Account eligibility confirmed for SEZ developers; banks may permit and credit full foreign exchange earnings.
Clarification that Exchange Earner's Foreign Currency (EEFC) Account eligibility extends to Special Economic Zone developers, permitting them to open, hold and maintain EEFC Accounts with Authorised Dealer Category I banks and to credit up to 100 percent of their foreign exchange earnings as specified in the Schedule to the relevant FEMA notification, with banks instructed to inform their constituents.

SEZ Act implementation guidance: prior departmental instruction on SEZ procedures placed in abeyance pending further directions.
Instruction No.45 (30 November 2009) notifies Development Commissioners and Chief Commissioners of Customs and Excise that the operation of Instruction No.34 (31 August 2009) concerning implementation of the SEZ Act and SEZ Rules, 2006 is kept in abeyance, serving as a procedural update from the Department of Commerce pending further direction.

SEZ monthly reporting requirements mandate standardized formats and timely submission to monitor zone performance by prescribed deadline each month.
Development Commissioners must submit monthly reports by the seventh of the following month using prescribed formats A-E and I (with formats G-H required of Zonal DCs) to monitor SEZ performance. The templates require structured data on approval processing under SEZ Rules 17-19, other permissions (diversification, capacity, changes, extensions, bond execution), Rule 74 approvals, duty collection and foregone figures, sectoral import export data, developer inspection status, CST/drawback claims and staffing and recruitment details.

SEZ policy clarification procedure: zonal Development Commissioners must raise cases in AS(SEZ)-chaired post-BOA meetings for consideration.
Clarification procedure under the SEZ Act and Rules requires Development Commissioners to submit policy queries for discussion in Zonal Development Commissioner meetings held after BOA meetings, chaired by the Assistant Secretary (SEZ); matters must be brought with full case details for consideration before referral to the Department of Commerce.

Prior Delegated Authority Review required - BoA will only consider authorized operation requests certified by DCs.
Requests for authorized operations must be made first to the concerned Development Commissioner, who shall consider and dispose of them within a timebound period; only requests certified by the DC as outside delegated authority, with specific comments, shall be referred to the Board of Approval, and the BoA will not consider requests lacking such DC certification.

Special Economic Zone development guidelines require compliance with land acquisition norms and comprehensive long term master planning.
Guidelines require promoters of Special Economic Zones to comply with land acquisition and resettlement norms, prioritise non-cultivable land, and prepare a 20-25 year Development Plan divided into five-year action plans addressing site analysis, land use, sectoral infrastructure, transport linkages, environmental safeguards, energy conservation and phased investment backed implementation. State Governments may constitute Empowered Committees for regulated areas, delegate building approvals to the Zone Approval Committee, and are expected to provide time-bound master plan approvals while developers provide comprehensive internal infrastructure and community facilities.

NFE calculation must be in rupee terms; negative balances from forex fluctuation may be considered with bank certification.
Calculation of Net Foreign Exchange (NFE) under Rule 53 of the SEZ Rules, 2006 must be done in rupee terms. If a unit is NFE negative and attributes it to foreign exchange fluctuation, the Approval Committee may consider the case provided the unit submits computations certified by an Authorised Bank.

Hazardous waste import rules limit imports to recycling or reuse and require movement documents, certification and monitoring.
SPCB officers should attend SEZ Approval Committee meetings to ensure environmental compliance before unit approvals. Imports of hazardous waste are prohibited for disposal and permitted only for recycling, recovery or reuse; Customs must verify documents, draw random samples, ensure a movement document and accredited certification accompany consignments, and take action against violators. SPCBs must monitor recycling/reprocessing units regularly, enforce the Rules and report to the Ministry.

Single Window Mechanism for SEZ approvals centralises operational issues to Unit Approval Committees and Department of Commerce.
Operational governance of Special Economic Zones is to be exercised through the established approval architecture rather than through separate interventions by individual central departments. Local Unit Approval Committees and a central Board of Approval, with departmental representation, function as a Single Window Mechanism. Unresolved issues at the Committee level are to be referred to the Department of Commerce as the nodal agency for decision by the Board of Approval.

Mandatory online filing for SEZ applications required; developers and units must register with the designated service provider.
The Department of Commerce has contracted a designated service provider to implement the SEZ Online Project, an integrated e governance platform for SEZ administration; once operational, all applications and transactions must be submitted through the online system and SEZ Developers and Units are required to register with the service provider.

Import and remaking of jewellery authorised in SEZs; permitted for units with manufacturing LOA and includes re imports.
Import, re-melt, re-make and export of imported finished jewellery are authorised manufacturing activities in an SEZ where the unit holds a letter of approval for manufacturing jewellery; the term import expressly includes re-import of exported jewellery.

Authorized operations in SEZs expanded to permit developers to provide specified infrastructure and services from notification date.
The notification expands the consolidated list of default authorized operations that developers and approved co-developers of SEZs may undertake from the date of notification, allowing duty-free materials for those operations subject to government guidelines; activities not on the list require prior approval of the Board of Approval. The Annexure enumerates core infrastructure and common facilities for all SEZs and lists additional sector-specific authorized operations for IT/ITES, biotechnology, gems and jewellery, handicrafts, non-conventional energy, port/airport or service SEZs, Free Trade and Warehousing SEZs, and Multi Product SEZs.

Developer endorsement requirement: developers must send proposals to Development Commissioners for analysis before Board of Approval consideration.
A developer submitting a proposal for Board of Approval consideration must endorse a copy to the concerned Development Commissioner, who will promptly analyse it and send comments to the Ministry so they are available for the next BoA meeting; Development Commissioners must ensure strict compliance with this procedural requirement.

Prior approval for inspections in SEZs required; agencies must obtain DC consent unless authorized under sections 20 or 21.
Section 22 of the SEZ Act requires agencies not authorized under the SEZ Act to obtain prior approval of the Development Commissioner before undertaking searches, inspections, seizures or investigations within a SEZ; other agencies retain their statutory powers until formally notified, but cannot carry out such intrusive actions without the DC's approval.

Time-bound disposal of SEZ applications ensures prescribed processing timelines for approvals, permissions and registrations across procedural categories.
The Department of Commerce prescribes mandatory, category-specific processing timelines for SEZ applications, requiring time-bound disposal of approvals such as issuance and amendment of Letters of Approval, allotment of land and IEC numbers, various registrations and clearances, utility and building approvals, permissions for subcontracting, debonding, mergers, diversification, production enhancement and cancellation, and same-day handling for routine certifications and identity card matters.

Prohibition on compulsory land acquisition for SEZs preserves consent-based acquisition and limits Board approval for affected projects.
State governments must not undertake compulsory acquisition of land for SEZs; SEZs with compulsory acquisition after the cutoff will not be approved by the Board of Approval. Cases where all interest-holders have not objected or have withdrawn objections may be considered, but where statutory objections remain the acquisition should not proceed for SEZ purposes and such cases should not be presented to the Board. In areas with special land-ownership regimes, leases by designated developmental agencies under an approved master plan to SEZ developers may be treated as SEZ land in possession.

Relaxation of SEZ contiguity requires secured dedicated connectivity and approvals, with no tax benefits for such works.
Relaxation of contiguity for SEZs is conditional on establishing and maintaining contiguity via dedicated security gates, over-bridges, underpasses, culverts and fencing; locating the entire processing area on one side of the National Highway; restricting movement between separated areas until securitization is complete; obtaining and submitting formal approvals from relevant authorities before commencing work; and accepting that no tax benefits are available for measures to establish contiguity and no Letter of Approval will be issued until measures are completed.

Capital goods clearance into Domestic Tariff Area permitted, subject to prescribed procedural compliance and approvals.
Capital goods procured by a developer or co-developer for authorised operations in an SEZ may be cleared back into the Domestic Tariff Area only by following the prescribed procedure under rule 49(3); this clarification must be communicated to all units, developers and the Unit Approval Committee of each zone to ensure compliance prior to clearance.

Lease agreement requirement clarified: when developer/co developer and unit are the same legal entity, an allotment letter suffices.
Where the Developer or Co Developer and the unit are the same legal entity within an SEZ, no separate lease agreement is required; an allotment letter from the Developer or Co Developer to the unit is sufficient to satisfy the documentary requirement.

Development norms for non-processing areas set sector-specific limits and require BOA case-by-case approval of infrastructure.
The instruction requires the Board of Approval to approve non-processing area infrastructure items case-by-case considering SEZ size, processing distribution, available FAR, employee projections, location and town planning norms, with category-wide ceilings set by the local development authority and revisable proportionately; construction may be phased linked to processing activity levels, developers must obtain local master plan approval, and sector-differentiated DDA-derived indicative norms specify maximum non-processing areas, assumed FAR, total floor space and detailed floor-space and land-use allocation percentages.