TaxTMI 
TaxTMI 
Special Economic Zones (Amendment) Rules, 2018
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....pment 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 Services Tax, Integrated Goods and Services Tax and State Goods and Services Tax" shall be substituted; (i....
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....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 per cent. scrutiny at the premises of the Unit by Special Economic Zone authorities.". 11. In the said rules, in rule 19, in sub-rule (2), - (a) after the words "shall specify the items of manufacture", the words "along with the corresponding Indian Trade Classificati....
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....tivity 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 sub-contractor" shall be inserted; (c) in clause (iv),- (A) in sub-clause (b), - (a) after the words "on import or procurement" occurring at both the places, the words "of goods and services" shall be substituted; (b) after the words "packing materials", the words "and services" shall be inserted; (B) in sub-clause (c), after the words "additional goods" the words "and services" shall be inserte....
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.... 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" shall be substituted. 16. In the said rules, in rule 26, - (i) in the fourth proviso, for the words "iron-ore" the words "or supply from Domestic Tariff Area, of any ore" shall be substituted; (ii) after the fourth proviso, the following provisos shall be inserted, namely:- "Provided also that Special Economic Zone Units shall be permitted to export prohibited items, if they import raw-material for the same, but each such case shall be placed before Board of Approval for approval: Provided also that items which are prohibited ....
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....x 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 of Bill of Export, as the case may be, with an endorsement by the authorised officer that goods have been admitted in full into the Special Economic Zone shall be treated as proof of export and a copy with such endorsement shall also be forwarded by the Unit or Developer to the Goods and Services Tax or Central Excise Officer having jurisdiction over the Domestic Tariff Area supplier within forty-five days failing which the Goods and Services Tax or Central Excise Officer, as the case may be, shall raise demand of tax or duty against the Domestic Tariff Area supplier; (e) sub-rules (5), (8) and (9) shall be omitted; (f) in sub-rule (11), after the words "drawbacks and" occurring at bot....
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....s 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 "an amount equal to the duty applicable on imports 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 Goods and Services Tax Officer if the sub-contractor is a Goods and Services Tax registrant" shall be substituted. 24. In the said rules, in rule 43, after clause (d), the following proviso shall be inserted, namely: - "Provided that, - (i) only employees temporarily in-capacitated, employees travelling and off-site employees of Special Economic Zones may be permitted to work from home or from place outside the Special Economic Zone subject to the following conditions, namely:- (a) the person shall be an employee of the Special Economic Zone Unit; (b) the person shall carry out the work related to a proj....
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....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) Rules, 2017 and packing list with the Authorised Officer along with copy of the Letter of Approval and bonding licence;"; (b) in clause (iii), for the words "submit the re-warehousing certificate", the words, figures and letters "follow the procedure laid down by the Central Board of Indirect Taxes and Customs in terms of Customs Notification no. 44/ 2016-Customs dated 29th July, 2016 published in the Official Gazettee vide Notification S.O. 2566 (E) dated 29th July, 2016 and submit the documents specified therein" shall be substituted; (iv) in sub-rule (13), - (a) for the words "Central Excise", wherever it occurs, the words "State Tax Officer or Central Tax Officer" shall be substituted; (b) in clause (ii), for the words "warehousing Bill of Entry" the words "Bill of Entry for Home Consumption" shall be substituted; (c) in clause (iii), for the words "re-warehousing certificate", the words, brackets, letters and figur....
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.... 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 Foreign Trade Policy; (g) supply against special entitlements of duty free import of goods under the Foreign Trade Policy; (h) export of services by services Units including services rendered within Special Economic Zone or such services rendered in Indian Rupees which are otherwise considered as having been paid for in free foreign exchange by the Reserve Bank of India; (i) supply of Information Technology Agreement items and notified zero duty telecom or electronic items, namely, Colour Display Tubes for monitors and Deflection components for colour monitors or any other items as may be notified by the Central Government; (j) supply to other Units and Developers in the same or other Special Economic Zone or Export Oriented Unit or Electronic Hardware Technology Park or Software Technology Park Unit or Bio-technology Park Unit provided that such goods and services are permissible for import or procurement by such Units and Developers; (k) supply of goods against free foreign exchange by a Free Trade and Warehousing Zone Unit. ....
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....-B/B x 100 Where, - A = Free on Board value of the export realised or Freight on Road and Rails value of supply received; B = Value of inputs (including domestically procured) such as gold or silver or platinum content in export product plus admissible wastage along with value of other items, such as gemstone etc. wherever gold has been obtained on loan basis, value shall also include interest paid in free foreign exchange to foreign supplies:"; Provided that where a Unit is unable to achieve Net Foreign Exchange due to adverse market conditions or any ground of genuine hardship having adverse impact on functioning of the Unit, the five years block period for calculation of Net Foreign Exchange earnings may be extended by the Board of Approval for a further period of upto one year, on a case to case basis.". 29. In the said rules, in rule 54, in sub-rule (2), after the words "Net Foreign Exchange Earning," the words and figures "or stipulated Value Addition as specified in rule 53" shall be inserted; 30. In the said rules, in rule 74, after sub-rule (5), the following sub-rule shall be inserted, namely:- "(6) The Unit opting out from Special Economic Zone shall execute ....
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.... 5 years 2. *Foreign Exchange Outgo on for the first five years 3. Net Foreign Exchange earnings for the first five years (1-2) FOREX Balance Sheet proposed for next block (Rs. in Lakhs) Sl. No. Items 1st 2nd 3rd 4th 5th Total 1. Free on Board value of Exports in first 5 years 2. *Foreign Exchange Outgo on for the first five years 3. Net Foreign Exchange earnings for the first five years (1-2) *Foreign Exchange outgo shall include Cost, Insurance and Freight value of import of machinery, raw material, components, consumables, spares, packing material and amount of repatriation of dividends and profits, royalty, lump sum knowhow fee, design and drawing fee, payment to foreign technicians, payments on training of Indian technicians abroad, commission on export, interest on external commercial borrowings, interest on deferred payment cre....
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....wing fee, payment to foreign technicians, payments on training of Indian technicians abroad, commission on export, interest on external commercial borrowings, interest on deferred payment credit and any other payments.". 35. In the said rules, after Form K, the following Form shall be inserted, namely:- "FORM L FORM OF LEGAL UNDERTAKING FOR EXIT OF THE UNIT FROM SPECIAL ECONOMIC ZONE SCHEME (See rule 74(6)) M/s ___________were granted Letter of Approval/Letter of Permission No. ________________ dated _________ for setting up a Special Economic Zone Unit __________________ at _______________ for the manufacture and export of ________________ subject inter-alia to the condition that they would achieve positive Net Foreign Exchange on cumulative basis as per provisions of Special Economic Zone Scheme. The unit filed a legal undertaking as per rule 22 of Special Economic Zone Rules, 2006 in Form H of Special Economic Zone Scheme on ___________ with the President of India through the Development Commissioner, _____ Special Economic Zone for achieving the above mentioned commitments. As against the above commitments, the unit's actual performance has ....