TaxTMI 
TaxTMI 
Special Economic Zones (Customs Procedures) ( Fourth Amendment) Regulations, 2004
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.... Approval Committee", in respect of a special economic zone means a committee set up for the special economic zone as notified in the Official Gazette by the Central Government in the Ministry of Commerce and Industry' ; (B) in regulation 3, for sub-regulation (3), the following sub -regulation shall be substituted, namely: "(3) Each zone unit shall have separate establishment distinct and identifiable or distinct and partitioned, from other zone unit"; (C) for regulation 10, following regulation shall be substituted , namely:- '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 tariff area unit, as the case may be, shall file a bill of export giving therein complete description, model, make, specifications, nature of goods such as capital goods, raw materials, spares, consumables, with specially stamped endorsement as "special e....
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....ars. 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 or developer 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 of ARE-I and assessed copy of bill of export shall not be required to be submitted to the jurisdictional Central Excise authority for removal of goods, from the premises of the trader ....
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.... this behalf by the proper officer of the zone in respect of description, quantity, marks, model and other relevant particulars given in the ARE-I and invoice and packing list and also in accordance with the examination norms laid down in respect of export goods and instruction issued by the Board in this behalf from time to time; (3) Nothing contained in sub-regulations (1) and (2) shall apply in cases where the duty paid goods are procured from domestic tariff area and no duty concession or export incentives are being claimed against such supplies by the domestic supplier or the zone unit or the developer, as the case may be, and such goods shall be allowed admission into the zone on the basis of invoice issued by the supplier of the goods and concerned transport documents, if any. Explanation 1.- for the purpose of this regulation, ''export incentives'' includes drawback, duty entitlement passbook scheme, rebate, advance license or counting of proceeds as export earnings or counting of proceeds as fulfillment of export obligation under any scheme. Explanation 2.- For the purposes of this regulation, " ARE-I" means Form ARE-I referred to in notification No 40/2001-Central Ex....
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....r electronic hardware technology park unit fails to submit the re-warehousing certificate within a period of forty-five days from the day of clearance of goods, officer of the customs concerned in the zone shall take up the matter with the jurisdictional proper officer of the receiving unit, to initiate recovery proceeding against such export oriented undertaking, software technology park unit or electronic hardware technology park unit, as the case may be; (v) where goods admitted into zone unit from domestic tariff area, on which benefit under duty exemption pass book scheme or duty draw back has been availed, are removed as such or after subjecting it to a process not amounting to manufacture, to an export oriented undertaking or software technology park unit or electronic hardware technology park unit directly by the zone unit or through any unit in the same zone or another zone, the duty equal to benefit availed under duty exemption pass book scheme or duty drawback shall be liable to be paid." (H) in regulation 22,- (i) in sub-regulation (4), for the word, bracket and figure " clause(4)" the word, bracket and figure " sub-regulation (3)" shall be substituted; (ii)....
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....me to the adverse notice of Customs authorities at least for a period of last two years ;" ; (iii) in clause (viii), for the second proviso, the following proviso shall be substituted, namely:- " Provided further that no such bank guarantee shall be furnished by the status holder zone unit having an unblemished track record or a unit which has not come to the adverse notice of Customs authorities at least for a period of last two years ;" ; (b) in sub-regulation (2), for clause (iii) the following clause shall be substituted, namely:- " (iii) the facility of sub-contracting of production shall be allowed subject to the condition that the product is also being manufactured by the zone unit in the zone ; " ; (c) for sub -regulation (3), the following sub-regulation shall be substituted, namely:- " (3) Subject to permission of the proper officer, the zone unit shall be allowed to remove moulds, jigs, tools, fixtures, tackles, instruments, hangers, patterns and drawings to the job-worker's premises in the domestic tariff area without payment of duty and shall be allowed to keep such moulds, jigs, tools, fixtures, tackles, instruments, hangers, patterns and drawings in....
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....claimed on such goods" ; (L) in the regulation 29,- (i) for sub -regulation (4), the following sub-regulation shall be substituted, namely:- "(4) The bond amount shall be equal to the twenty five per cent. of the duty leviable on the imported and indigenous capital goods plus duty forgone on raw materials to be held in stock for three months by the zone unit."; (ii) for sub-regulation (7), the following sub-regulation shall be substituted, namely:- " (7) Notwithstanding anything contained in sub-regulation (5), where the zone unit have a turnover of rupees one crore or above, or where the zone unit is in existence for more than a period of three years with an unblemished track record, such unit shall not be required to furnish surety or security."; (iii) for sub -regulation (9), the following sub-regulation shall be substituted, namely:- "(9) The bond shall be a running bond and shall be debited for an amount equal to duty forgone on the goods imported or procured by the zone unit, and credited for an amount equal to duty forgone on the raw materials used in the manufacture of finished products where such manufactured goods are either exported or cleared into dom....
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....ving jurisdiction over the zone in such form, as may be specified by such proper officer ; (viii) the developer shall execute a bond in Form II as annexed in the Special Economic Zone Rules, 2003 with the proper officer having jurisdiction over the zone , binding himself to utilise the goods within a period of six months or such period, as may be extended by such proper officer , and if the developer fails to do so, then the developer shall pay on demand an amount equal to the duty as leviable on the said goods alongwith interest at the rate of fifteen per cent. per annum on the said duty from the date of import or procurement of said goods ; (ix) the developer shall not remove the goods from the zone except with the permission of the proper officer having jurisdiction over the said zone and on payment of duty applicable on such goods; (x) no goods, other than which are required for the purposes of construction, development, operation, maintenance of the zone or for providing utilities in the zone, shall be allowed admission in the zone without payment of duty; (xi) the developer shall produce, a certificate of utilisation of the goods from an independent chartered engi....