TaxTMI 
TaxTMI 
Special Economic Zones (Customs Procedures) Regulations, 2003
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....ime 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 Hardwar....
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....evelopment 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 su....
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....urisdiction 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 gener....
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....e 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,....
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....amaged 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 tarif....
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....on 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....
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....oved 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....
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....nd 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 pr....
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....ulations, 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. ....
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....ion, 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 a....
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....crap 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 go....
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....ubject 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,....
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....ded 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 c....
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....ented 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....
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....rading 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....
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....(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 ....
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....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.- (1) The developer shall be allowed to import or procure the goods from domestic tariff area without payment of duty for the purpose of development, operation and maintenance of the zone, subject to following conditions, namely :- (i) the developer shall make an application to the concerned Development Commissioner for approval of the list of goods proposed to be imported or procured duty free; (ii) the developer shall submit the application accompanied with the proof of ownership of land, encumbrances certificate, or in case the land is acquired on lease at least for ....