|
Monitoring of performance :
(a) The performance of SEZ units shall be monitored by a committee comprising of
Development Commissioner and Customs. The Committee shall be headed by the
Development Commissioner. It will also see that the wastage/manufacturing loss
on gold/ silver/platinum jewellery and articles are within the overall
percentage prescribed in Appendix- 14 L of Handbook (Vol-I). In case of higher
wastage/ manufacturing loss, the committee shall satisfy itself of the
reasonableness of the same.
(b) The performance of SEZ units shall be monitored as per the guidelines given
in Appendix-14 E of Handbook (Vol-I).
Legal Undertaking :
The unit shall execute a legal undertaking with the Development Commissioner
concerned and in the event of failure to achieve positive foreign exchange
earning it shall be liable to penalty in terms of the legal undertaking or under
any other law for the time being in force.
DTA Sales and Supplies
:
1. SEZ unit may sell goods, including by-products, and services in DTA in
accordance with the import policy in force, on payment of applicable duty.
2. DTA sale by service/trading unit shall be subject to achievement of positive
NFE cumulatively. Similarly for units undertaking manufacturing and services/
trading activities against a single LOP, DTA sale shall be subject to
achievement of NFE cumulatively.
3. The following supplies effected in DTA by SEZ units will be counted for the
purpose of fulfillment of positive NFE:
a. Supplies effected in DTA in terms of Paragraph 8.2 of the Policy.
b. Supplies made to bonded warehouses set up under the Policy and/or under
Section 65 of the Customs Act.
c. Supplies to other EOU/EPZ/SEZ/ EHTP/ STP units provided that such goods are
permissible for procurement by units in terms of paragraph of the Policy.
d. Supplies against special entitlement of duty free import of goods
e. Supplies of goods to defense and internal security forces, foreign
missions/diplomats provided they are entitled for duty free import of such items
in terms of general exemption notification issued by the Ministry of Finance.
f. Supply of services (by services units) relating to exports paid for in free
foreign exchange or for such services rendered in Indian Rupees, which are
otherwise considered as having been paid for in free foreign exchange by RBI.
g. Supplies of Information Technology Agreement (ITA-I) items, provided that the
items are manufactured in the unit and attract zero rate of basic customs duty.
Entitlement for Supplies from the DTA
:
1. Supplies from the DTA to SEZ units shall be eligible for the following:
a. DTA supplier shall be entitled for :-
i. Relevant entitlements under paragraph 8.3 of the Policy.
ii. Discharge of Export performance, if any, on the supplier.
iii. Benefit of DEPB in lieu of drawback for supplies made to SEZ or Unit in
SEZ.
b. SEZ units shall be entitled for:-
a. Reimbursement of Central Sales Tax;
b. Exemption from payment of Central Excise Duty on all goods eligible for
procurement as per paragraph 7.2 of the policy.
c. Reimbursement of Central Excise Duty, paid on bulk tea procured from the
licensed auction centres by the Development Commissioner of Concerned Zone so
long as levy on bulk tea in this regard is in force.
d. Reimbursement of Duty paid on fuels or any other goods procured from DTA as
per the rate of drawback notified by the Directorate General of Foreign Trade
from the date of such notification.
e. Supplier of cut and polish diamonds, precious and semi-precious stones,
synthetic stones and processed pearls from Domestic Tariff Area to the units
situated in SEZ shall be eligible for grant of Replenishment Licenses at the
rates and for the items mentioned in Appendix-13 of the Handbook (Vol. I).
f. The entitlements under paragraphs (I) and (II) (i) and (ii) above shall be
available provided the goods supplied are manufactured in India.
Export Through Status Holder
:
SEZ unit may also export goods manufactured by it through a merchant exporter/
status holder recognized under this Policy or any other EOU/EPZ/SEZ/ EHTP/STP
unit.
Inter-unit Transfer
a. Transfer of manufactured goods, including partly processed/semi-finished
goods from one SEZ unit to another SEZ/EOU/EPZ/ EHTP/STP unit will be allowed.
b. Goods imported/procured by an SEZ unit may be transferred or given on loan to
another unit within the same SEZ which shall be duly accounted for, but not
counted towards discharge of export performance.
c. Transfer of goods in terms of sub-para (a) and (b) above within the same SEZ
shall not require any permission but the units shall maintain proper accounts of
the transaction.
d. Capital goods imported/procured may be transferred or given on loan to
another SEZ/EOU/ EPZ/ EHTP/ STP unit with prior permission of the Development
Commissioner concerned.
e. Other Entitlements
Other entitlements of SEZ units are indicated in the Handbook (Vol-1).
Sub- Contracting
1. SEZ unit, may subcontract a part of their production or production process
through units in the DTA or through other SEZ/EOU/EPZ/ EHTP/ STP, with the
permission of Customs authorities. Subcontracting of part of production process
may also be permitted abroad with the approval of the Board of Approval.
2. Subcontracting by SEZ gems and jewellery units shall be subject to following
conditions :-
1. Goods, finished or semi-finished, including studded jewellery, containing
quantity and purity equal to the gold/ silver/platinum so taken out, shall be
brought back to the Zone within 30 days. Further, no diamond, precious or
semi-precious stones shall be allowed to be taken out of the Zone for
sub-contracting.
2. Receive plain gold/silver/platinum jewellery from DTA in exchange of
equivalent quantity of gold/silver/ platinum, as the case may be, contained in
the said jewellery.
3. SEZ units shall not be eligible for wastage or manufacturing loss against the
jewellery received from DTA after processing as mentioned in (i) and against
exchange of gold/silver/platinum as mentioned in (ii) above.
4. The DTA unit undertaking job work or supplying jewellery against exchange of
gold/silver/platinum shall not be entitled to export benefits.
5. All units, including gem and jewellery, may sub-contract part of the
production or production process through other units in the same SEZ without
permission of Customs authorities subject to records being maintained by both
the supplying and receiving units.
6. SEZ units other than gems and jewellery units may be allowed to undertake
job-work for export, on behalf of DTA exporter, provided the finished goods are
exported directly from SEZ units. For such exports, the DTA units will be
entitled for refund of duty paid on the inputs by way of Brand Rate of duty
drawback.
7. Scrap/waste/remnants generated through job work may either be cleared from
the job worker's premises on payment of applicable duty or returned to the unit.
De-bonding
1. SEZ unit may be de-bonded with the approval of the Development Commissioner.
Such de-bonding shall be subject to payment of applicable Customs and Excise
duties on the imported and indigenous capital goods, raw materials etc. and
finished goods in stock. In case the unit has not achieved positive NFE, the
de-bonding shall be subject to penalty, that may be imposed by the adjudicating
authority under Foreign Trade (Development and Regulation) Act, 1992.
2. SEZ unit may also be permitted by the Development Commissioner, as one time
option, to de-bond on payment of duty on capital goods under the prevailing EPCG
Scheme, subject to the unit satisfying the eligibility criteria of that Scheme
and standard conditions, as per Para 7.13 of the Handbook (Vol-I).
|