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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....-5-2004. 2. As provided in the Chapter XA of the Customs Act, 1962, the Special 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 prov....
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....rocured by SEZ Unit from DTA are transferred, directly or via another SEZ, to EOU/EHTP/STP, as it is, or after subjecting them to processes not amounting to manufacture, the SEZ units would be required 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 amende....
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....ulations, 2003, are as under:- (i) In the original SEZ regulations, it was provided that two or more zone units shall not be allowed to operate from the same 'premises'. Since the term "premises" is subject to different interpretations, Regulations 3 has been amended to provide that each unit would be '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 , admissio....
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.... (vii) Goods procured by a zone unit from DTA, when supplied back to DTA, are to be considered as re-import and all the procedures and conditions as applicable in case of normal re-import of goods would apply. However, when import duty on such goods is 'nil' and no export benefits were taken during procurement of such goods, in such cases , the goods may be allowed to be supplied back to DTA on the basis of invoice only and filing of Bill of Entry 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 provi....
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.... (x) The bond executed by the SEZ unit would be a running bond. Debiting and crediting of the bond would now be done on quarterly basis instead of transaction basis. The bond value would be equal to 25% of duty forgone on the sanctioned requirement of capital goods to be procured or imported duty free, plus duty on raw materials to be held in stock for three months by the zone unit. The unit having a turn over of rupees one crore or above or a unit which is in existence for more than a period of three years with an unblemished track record, would be exempted from furnishing surety or security. Regulation 29 has been amended accordingly. (xi) The developer of SEZ is now not required to apply to any Committee for duty f....
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....ials of the SEZ unit / SEZ developer can not be admitted into the SEZ without payment of duty [Rule 5(2)]. Please note that there will be no restriction on movement of duty paid vehicles in & out of the SEZ for use by the units or their employees. This position is once again reiterated. 6. Board's Circular 68/2003-Cus dated 30-7-2003 stands modified to the above extent. 7. In regulation 17, it has been provided that in case of export of goods for participation in exhibition abroad, the goods would be subject to examination following the same procedure as applicable in the case of normal import or export. It has been decided that in case of gem and jewellery consignments examination of goods would be restricted to 10% for bot....