TaxTMI 
TaxTMI 
Special Economic Zones (Amendment) Rules, 2018
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.... "along", the words "through the jurisdictional Development Commissioner concerned along" shall be substituted. 5. In the said rules, in rule 5, - (i) in sub-rule (2), in clause (b), in sub-clause (ii), after the words "for setting up a Special Economic Zone for Information Technology or Information Technology Enabled Services", the words "Bio-technology and Health Sector (excluding hospitals)," shall be inserted; (ii) in sub-rule (5), in clause (a), after the words "State and local taxes", the words "State Goods and Services Tax," shall be inserted. 6. In the said rules, in rule 11, - (i) in sub-rule (2), in the first proviso, for the words "Board", the words "Approval Committee" shall be substituted; (ii) after sub-rule (9), the following sub-rule shall be inserted, namely: - "(9A) The Developer shall ensure sufficient and adequate space, as per the applicable Central Public Works Department norms, for the Office of Development Commissioner and Customs Officers posted in the Special Economic Zone.". 7. In the said rules, in rule 11A, in clause (1), - (i) for the words "Service Tax", the words "Central Goods and Servic....
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.... Area shall be under taken. (4B) Procedure to be followed for verification of documents prior to clearing the consignment in Special Economic Zone :- (a) Each consignment of used clothing imported by the Unit shall be accompanied with certificate from exporter or agency in which it was generated regarding dis-infection and fumigation of the containers from an agency licensed in the country of origin of worn clothing along with import documents; (b) in case of mis-declaration by any importer in regard to any toxic or hazardous substances, action as per the relevant provisions of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) shall be taken against such importer; (c) to ensure that used clothing re-processing Units in Special Economic Zones fulfil their export obligations in addition to meeting their Net Foreign Exchange obligation and all such Units shall be required to ensure that certain minimum percentage of the Units annual turnover is physically exported out of the country; (d) before the clearance of used clothes to Domestic Tariff Area, all imported consignments of such used clothes shall be subject to 100 pe....
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....the Unit in the last block vis-a-vis the initial export projection submitted by the Unit. (ii) Projected employment with reference to actual employment generated. (iii) Instance of violation of applicable statutes related to the functioning of the Unit. (iv) Cases of default, if any, of statutory payments. (v) Undertaking of any activity not sanctioned or approved by the Development Commissioner. (vi) The decision of the Development Commissioner or Approval Committee in this regard shall be final and binding on the Unit except in cases where the Unit prefers an appeal before the Board of Approval, in accordance with rule 55.". 12. In the said rules, in Chapter IV, for the Chapter heading, the following Chapter heading shall be substituted, namely:- "TERMS AND CONDITIONS FOR GRANT OF PERMISSION TO OPERATE INCLUDING AVAILING EXEMPTIONS, DRAWBACKS AND CONCESSIONS". 13. In the said rules, in rule 22, - (i) in sub-rule (1), - (a) after the words "Grant of", the words "permission to operate including availing" shall be inserted; (b) in clause (ii), after the word "contractor", the words "including the ....
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....against supply of goods by Domestic Tariff Area supplier to Special Economic Zone developers shall be admissible even if payment is made in Indian Rupees and reimbursement of duty in lieu of drawback or any other similar benefit against supply of goods to Special Economic Zone developer shall be made as per the procedure specified by the Central Government under the Customs and Central Excise Duties Drawback Rules, 2017, as amended from time to time.". 15. In the said rules, in rule 25,- (a) for the words, figures and brackets "the Central Sales Tax Act, 1956, the Foreign Trade (Development and Regulation) Act, 1992 and the Finance Act, 1994 (in respect of service tax)", the words, figures and brackets "the Central Goods and Services Tax Act, 2017 (12 of 2017), Integrated Goods and Services Tax Act, 2017 (13 of 2017), State Goods and Services Tax Acts, Union Territory Goods and Services Tax Act, 2017 (14 of 2017) and the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992)" shall be substituted; (b) in the proviso, for the words "such entrepreneur shall be liable", the words "or stipulated Value addition, such entrepreneur shall also be liable" sha....
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....ds or services, as in the case of zero-rated supply as per provisions of section 16 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) either under bond or legal undertaking or under any other refund procedure permitted under Goods and Services Tax laws or Central Excise law, or as duty or tax paid goods under claim of rebate, on the cover of documents laid down under the relevant Central Excise law for the purpose of export by a manufacturer or supplier."; (b) in sub-rule (2), - (i) after the word "Goods", the words "or services" shall be inserted; (ii) for the words "Central Excise Duty", the words "Goods and Services Tax or" shall be substituted; (iii) for the letters and figures "ARE-I", the words, brackets and figures "documents referred to in sub-rule (1) of Rule 30" shall be substituted; (c) in sub-rules (3), (4) and (7), for the letters and figures "ARE-I", the words, brackets and figures "documents referred to in sub-rule (1) of Rule 30" shall be substituted; (d) for sub-rule (4), the following sub-rule shall be substituted, namely: - "(4) A copy of the document referred to in sub-rule (1) or copy ....
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....or services" shall be omitted. 22. In the said rules, in rule 41,- (i) in sub-rule (1), in clause (h), after the words "Central Excise Officer", the words " or Central Tax Officer" shall be inserted; (ii) in sub-rule (2), after clause (b), the following clause shall be inserted, namely:- "(c) in case of sub-contracting abroad, the goods shall either be returned to the Unit or may be sold to buyers in that country or any third country.". 23. In the said rules, in rule 42, - (i) in sub-rule (1), in clause (ii), in sub-clause (b), for the words "Central Excise", the words "Goods and Services Tax" shall be substituted; (ii) in sub-rule (2), - (a) in clause (i), for the words " with the Central Excise Department", the words "under Goods and Services Tax" shall be substituted; (b) in clause (v), the proviso shall be omitted; (iii) in sub-rule (3), for the words "duty as if the said waste or scrap or remnants have been cleared by the Unit or may be destroyed at the sub-contactor's premises in the presence of jurisdictional Central Excise Officer if the sub-contractor is a Central Excise registrant", the words "a....
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.... (a) in clause (a), in the proviso, for the words and letters "in respect of export value up to US$ twenty five thousand or for export value as may be notified by the Reserve Bank of India, from time to time;", the words "for export value as may be notified by the Reserve Bank of India, from time to time;" shall be substituted; (b) in clause (c), after the words "self-certification by the Unit", the words ", however, in case Merchandise Exports from India Scheme benefit is claimed then examination of export cargo shall be done as per examination norms set by Central Board of Indirect Taxes and Customs" shall be inserted; (ii) in sub-rule 11, the word "pink" shall be omitted; (iii) in sub-rule (12), - (a) for clause (i), the following clause shall be substituted, namely:- "(i) the receiving Export Oriented Unit or Electronic Hardware Technology Park Unit or Software Technology Park Unit or Biotechnology Park Unit shall file Bill of Entry for home consumption, in quintuplicate along with invoice, copy of information as provided to jurisdictional customs officer under rule 5 of the Customs (Import of Goods at Concessional Rate of Duty) ....
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....ade Policy; (c) supply of goods to projects financed by multilateral or bilateral agencies or funds as notified by the Department of Economic Affairs, Ministry of Finance, from time to time, under International Competitive Bidding in accordance with the procedures of those agencies or funds, where the legal agreements provide for tender evaluation without including the customs duty; (d) supply of goods to any project or for any purpose in respect of which the Ministry of Finance notifies from time to time, permitting import of such goods at zero customs duty subject to conditions specified in the above said notification provided the supply is made under procedure of International Competitive Bidding; (e) supply of goods to United Nations or International Organisations for their official use or supplied to the projects financed by the said United Nations or an International Organisation approved by Government of India and the list of such organisations and conditions applicable to such supplies is notified by Ministry of Finance from time to time; (f) supply of goods to nuclear power projects provided they are as per the conditions stipulated in F....
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....ata Cost Insurance Freight of capital goods, imported duty free or leased from a leasing company or received free of cost or on loan basis or on transfer for the period they remain with the Unit. Explanation. - For the purposes of clause (a), the expression "inputs" mean raw materials, intermediates, components, consumables, parts and packing materials; (d) for annual calculation of Net Foreign Exchange, value of imported capital goods and lump sum payment of foreign technical know-how fee shall be amortised at the rate of ten per cent. every year from the first year to the tenth year; C: Gems and Jewellery Units shall achieve minimum Value Addition as laid down in prevailing Foreign Trade Policy or Hand Book of Procedures: Provided that the Nominated Agencies working as a service Unit for precious metals supply within Special Economic Zone shall be subjected to the requirement of positive Net Foreign Exchange only; and D: For Gems and Jewellery, the minimum Value Addition shall be in terms of prevailing Foreign Trade Policy or Hand Book of Procedures and it shall be calculated as under:- VA = A-B/B x 100 Where, - ....
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....ecial Economic Zone 2. Full address of Registered Office 3. Telephone/Fax Nos: 4. Permanent E-Mail address 5. Original Letter of Approval No. and Date 6. Date of renewal of Letter of Approval, if any dd/mm/yyyy 7. Date of commencement of production dd/mm/yyyy 8. Date of expiry of Letter of Approval dd/mm/yyyy 9. ID and date of application for renewal of LOA filed in SEZonline-ndml.com 10. Income Tax Permanent Account Number 11. Constitution of the Application Firm (Tick the appropriate entry) Public Ltd/ Private Ltd/ Partnership/ Proprietorship/ Others PART II Activity of Unit Existing Proposed for the renewed period 1.Item of Manufacture/service activity (including by product/co-products) 2.Investment in Capital Goods (in Rs. Lakhs) Indigenous Import 3.Investment in Raw Materi....
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....heme- reg. Sirs, With reference to your application No........... dated ..........., the validity of Letter of Approval No. ......dated .............. issued to M/s ................ is hereby extended for ...........block of 5 years i.e. from dd.mm.yyyy to dd.mm.yyyy for undertaking authorized operations, namely, .............. in ........... Special Economic Zone, in ...........state. All other terms and conditions stipulated in the original Letter of Approval shall remain unchanged. Your application for renewal of Letter of Approval has been considered on the basis of projections given therein and the same has been given below. Sl. No. Items 1^st 2nd 3^rd 4^th 5^th Total 1. Free on Board value of Exports for 5 years 2. *Foreign Exchange Outgo on for the first five years 3. Net Foreign Exchange earnings for five years (1-2) 2. You are required to execute a fre....