TaxTMI 
TaxTMI 
TaxTMI 
Special Economic Zones (Amendment) Rules, 2007
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncipal rules), in sub-rule (1) of rule 2, for clause (b), following shall be substituted: "Advance Licence" means Advance Licence issued under the Duty Exemption and Remission Scheme of the Foreign Trade Policy and includes advance authorisation. 3. In the principal rules in rule 5, in sub-rule (2),- (i) in clause (a),- (A) the first proviso shall be deleted; (B) the fourth proviso shall be deleted. (ii) in clause (b), for the words "A Special Economic Zone for a specific sector or in a port or airport," the words "A Special Economic Zone for a specific sector or for one or more services or in a port or airport" shall be substituted; (iii) after clause (c), the following clause shall be added, namely:- "(d) If a Developer sub....
X X X X Extracts X X X X
X X X X Extracts X X X X
....a period of three years within which time, effective steps shall be taken by the Developer to implement the approved proposal : Provided that the Board may, on an application by the developer or co-developer, for reasons to be recorded in writing, extend the validity period for a further period not exceeding two years. (b) The letter of approval of a Developer granted under clause (b) of sub-rule (1) shall be valid for a period of one year within which time, the Developer shall submit suitable proposal for formal approval in Form "A" as prescribed under the provisions of rule 3 : Provided that the Board may, on an application by the developer or co-developer for reasons to be recorded in writing, extend the validity period for a furth....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rehousing Zone shall have specified entry and exit points and be fully secured by taking such measures as approved by the Board of Approval.". (ii) in sub-rule (5), for the words, "the lease period shall be co-terminus with the validity of Letter of Approval", the following shall be substituted, namely:- "the lease period shall not be less than five years but notwithstanding any other condition in the lease deed, the lease rights would cease to exist in case of the expiry or concellation of the Letter of Approval." (iii) in sub-rule (10), for the second proviso, following shall be substituted:- "Provided further that infrastructure for business or social purposes in the Special Economic Zone, as may be approved by the Board, shall b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y be prescribed by the Approval Committee." 9. In the Principal rules, in rule 42, after sub-rule (4), the following sub-rule shall be inserted: "(5) The Developer or a co-developer or on their behalf their contractor, as the case may be, shall follow the same procedure for sub-contracting in Domestic Tariff Area or in a Unit in other Special Economic Zones or in a Export Oriented Unit or in an Electronic Hardware Technology Park Unit or a Software Technology Park Unit as prescribed for sub-contracting by SEZ Units in sub-rule (1) above : Provided that the Bank Guarantee to cover the duty foregone on the materials being sent for subcontracting shall apply only in case of temporary removal of goods by the contractor.". 10. In the princ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....roject. (19) Share Capital and Reserves of the Developer Company. (20) Source of funds for the project. (21) Net worth of the Applicant (including Group companies) duly supported by Audited Accounts of the Developer for last 3 Years (for all the constituents in case the Developer is a SPV). If the company is a new company, audited accounts of Flagship Company/promoters may be provided. (22) Extent of FDI (if any) in million U.S. Dollars. (23) Source of FDI (Country and Company details may be provided). (24) Whether provisions contained in the Press Note No. 5 (2005 Series), issued by the Ministry of Commerce and Industry have been followed in respect of Telecom/IT SEZ development?" 12. In the principal rules, in Form-B, in the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd Check List. Fifteen copies of the application and other enclosures prescribed shall be submitted to the Director (SEZ), Department of Commerce, Udyog Bhavan, New Delhi-110011 directly or through the State Government concerned. The applicant should be in possession of the identified area either by way of ownership or by way of lease hold rights valid for twenty years or more on the date of application. (ii) The Developer shall obtain the required approval from various statutory authorities under relevant statutes and regulations of the Government of India and the State Government and local bodies. (iii) The Developer shall make adequate provision for rehabilitation of the displaced persons as per the RR policy of the State Government.....