TaxTMI 
TaxTMI 
Operationalisation of the Provision of Chapter X A of the Customs Act, 1962- Issuance of SEZ Rules and Regulations- Reg
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....al Economic Zone Rules, 2003, and Special Economic Zone (Customs Procedure) Regulations, 2003, which were notified earlier have also come into effect from this date. (Ref: notification Nos. 52/2003-Customs (NT) and 53/2003-Customs (NT), both dated 22-7-2003). However, in order to liberalise the procedures further, the SEZ Rules and Regulations have been amended vide notifications Nos 61/2004-Csu(NT) and 62/2004-Cus(NT) both dated 11.5.2004. The important features of these amendments are explained below:- 3. The important features of amendments of SEZ Rules, 2003, are as under:- (i) Earlier Rule 9 provided that depreciation would be allowed @20% per annum for 'computer and computer peripherals' and for 'capital goods other then computer....
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....quired to pay back the duty drawback or DEPB benefits which was taken at the time of procurement of such goods from DTA either by the DTA unit or the SEZ unit, as the case may be. This provision has been introduced to ensure that supplies from DTA to EOU/EHTP/STP do not get benefit of DBK or DEPB indirectly. (iii) In rule 12 , earlier there was a provision that in case of destruction of goods procured from DTA, the SEZ unit shall be liable to pay back the export benefits allowed against such goods. However, the rule has been amended so as to provide that where payment for such goods have already been made in foreign exchange, the SEZ unit will not be liable to repay back the export benefits taken against such goods. However the scrap gen....
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.... 'a distinct establishment and identifiable or distinct and partitioned from other zone unit'. (ii) Regulation 10 has been amended to provide that where goods are procured from DTA by SEZ unit or the developer and where no export benefit has been obtained or where such goods or sale proceeds are not counted towards fulfillment of export obligation under any export promotion scheme , admission of goods would be allowed against 'Domestic procurement Certificate' and ARE-I and there would be no requirement for filing any Bill of Export. For detailed procedure the relevant provision of the regulations may please be referred to. However, where the duty paid goods are procured from Domestic Tariff Area and no duty concession or export incentiv....
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....ntry etc is not required. Regulation 22(6) has been amended accordingly. (viii) In case of jobwork following important provisions have been introduced in regulation 25 , namely:- (a) In the regulation 25(1)(iii ), it was earlier provided that while considering application for jobwork the proper officer would ensure that there is no attempt to parcel out 'substantial manufacturing process' to DTA. The word 'substantial' has been substituted by the word 'entire'. This entails that the zone unit would not be allowed to parcel out entire manufacturing activity in DTA in the name of jobwork. (b) In addition to the status holders, units having unblemished track record, which have not come to the adverse notice of Customs authorities for ....
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.... security. Regulation 29 has been amended accordingly. (xi) The developer of SEZ is now not required to apply to any Committee for duty free import or procurement of goods. The requirement of goods shall be assessed by a Chartered Engineer and approval would be given by the concerned Development Commissioner. On the basis of approval given by the Development Commissioner, the jurisdictional Deputy Commissioner or Assistant Commissioner would allow duty free import or procurement of goods by the developer for the purpose of authorized operations. The developer would be required to submit certificate of utilisation of duty free goods from a Charterd Engineer other than one who assessed the requirement of goods, within six months of every i....