Workshop on Foreign Trade Policy 2009-2014

[Annual Supplement 2010-11]

Faculty: Sudhakar Kasture Director, Exim Institute

Agenda
Policy in Retrospect Issues listed by Task Force with respect to FTP Para by Para Study of Foreign Trade Policy & Procedures Updates of Special Economic Zones

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Policy in Retrospect

Policy in Retrospect
This being the annual updation of Foreign Trade Policy 2009 – 14 (which was announced on 27th August, 2009) one cannot expect too many changes. The recession is said to be over and therefore additional fiscal support by way of incentives would be for those sectors only which are still lacking behind. Exports have increased compared to 2008 – 2009 and 2009 – 2010. But, the growth is moderate compared to earlier years, 2002 – 2007. The excise duties have been increased from 8% to 10% in the last Budget and the revenue receipts for the year 2010 – 2011 as presented in the Union Budget 2011, read as under

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Revenue Receipt
2009-2010 Budget Estimates REVENUE RECEIPTS 1. Tax Revenue Gross Tax Revenue Corporation tax Income tax Other taxes and Duties Customs Union Excise Duties Service Tax Taxes of the Union Territories Less - NCCD transferred to the National Calamity Contingency Fund / National Disaster response fund Less States' Share Net Tax Revenue 641079 256725 112850 425 98000 106477 65000 1602 2500 633095 255076 131421 511 84477 102000 58000 1610 3160 2009-2010 Revised Estimates

(Rs. in Crore)
2010-2011 Budget Estimates

746651 301331 128066 603 115000 132000 68000 1651 3560

164361 474218

164832 465103

208997 534094
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Revenue Foregone in financial years 2008-09 and 2009-10
Revenue Foregone in 2008-09

(Rs. in crore)

Revenue Revenue Revenue Foregone Foregone Foregone as a per in 2009as a per cent of 10 cent of Aggregate Aggregate Tax Tax Collection Collection in 2008-09 in 2009-10 11.08% 6.22% 21.25% 37.39% 75.95% 7.36% 68.59% 79554 40929 170765 249021 540269 37970 502299 12.60% 6.48% 27.04% 39.43% 85.56% 6.01% 79.54%
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Corporate Income-tax Personal Income-tax Excise Duty Customs duty Total Less Export credit related Grand Total

66901 37570 128293 225752 458516 44417 414099

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Notes: Aggregate Tax Collection refers to the aggregate of net direct and indirect tax collected by the Central Government. The figure of Aggregate Tax collection for 2008-09 is at actuals and that for 2009–10 is based on revised estimates. To conclude, the amount of revenue foregone continues to increase year after year. As a percentage of aggregate tax collection, revenue foregone remains high and shows an increasing trend as far as Corporate Income-tax is considered for the financial year 2008-09. In case of indirect taxes the trend shows a significant increase for the financial year 2009-10 due to reduction in customs and excise duties. Therefore, to reverse this trend expansion in the tax base is called for.

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Revenue Foregone on Account of Export Promotion Concessions (Rs. in crore)
Sr. Name of the Scheme No. 1 2 3 4 5 6 7 8 9 10 Advance License Scheme EOU/EHTP/STP EPCG DEPB Scheme SEZ DFRC Duty Free Import Authorization Scheme Duty Free Entitlement Credit Certificate Target Plus Scheme Vishesh Krishi and Gram Udyog Yojana (VKGUY) 2008-09 (Provisional) 12389 13401 7833 7092 2324 111 1268 418 1220 2059 2009-10 (Estimated) 10682 8015 5574 8806 3204 43 1646 206 265 3886

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Revenue Foregone on Account of Export Promotion Concessions (Rs. in crore)
Sr. No. 11 12 13 14 2008-09 (Provisional) 531 408 49053 4636 2009-10 (Estimated) 526 769 43622 5652

Name of the Scheme Served from India Scheme Focus Market Scheme Total Less Revenue Foregone on account of incentive schemes mentioned at sl. nos. 8 to 12 Revenue Foregone on account of input tax neutralization or exemption schemes to be reduced from Gross Revenue Foregone on account of Customs Duty

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44417

37970

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N.B.: These aforesaid estimates of revenue foregone do not include revenue foregone on account of adhoc exemption orders issued under section 25 (2)* of Customs Act, 1962, that relates to circumstances of an exceptional nature. *Section 25 (2) reads as under: “If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by special order in each case, exempt from the payment of duty, under circumstances of an exceptional nature to be stated in such order, any goods on which duty is leviable.”

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062 0.018 0.108 1.091 5.531 To conclude: The provisions made by finance ministry for release of funds towards export promotion would ultimately decide the future of all promotional schemes.+ Service Tax= Rs.315 17.280 3. 845506/crore 1.843 2. Hence.602 1.244477/crore] 4.195 0.263 0.491 15. Crore] 10682 8015 5574 8806 3204 43 1646 206 265 3886 % of total exports – Rs. 8 to 12 Revenue Foregone on account of input tax neutralization or exemption schemes to be reduced from Gross Revenue Foregone on account of Customs Duty 526 769 43622 5652 0.659 1.084 0.311 0.312 15 37970 4. one should not expect too much on actual incentives. nos.005 0.031 0. No.+ C.668 0.Revenue & Exports S. Name of the Scheme Revenue forgone amount for the year 2009-10 (Estimated) [In Rs.379 0.460 % of indirect tax collection [Cus.042 0.024 0.215 0.278 2.590 11 1 2 3 4 5 6 7 8 9 10 Advance License Scheme EOU/EHTP/STP EPCG DEPB Scheme SEZ DFRC DFIA Scheme DFCE Certificate Target Plus Scheme VKGUY 11 12 13 14 Served from India Scheme Focus Market Scheme Total Less Revenue Foregone on account of incentive schemes mentioned at sl. 12 6 .159 0.Ex.673 0.948 0.369 3.

Understanding Policy Export Promotion Schemes for import/procurement of Inputs Duty Exemption Duty Neutralisation / Remission Rewards/ Incentives by way of Duty Credit 14 7 .

Domestic Procurement Excise Duty is exempted and domestic manufacturer gets Deemed Exports benefits Basic Customs Duty exempted [CVD is payable. EOU Import Import All Import duties including Antidumping duty and safeguard duty are exempted. importer can get Cenvat Credit] 15 Duty Neutralisation / Remission DEPB Neutralisation of BCD on inputs as per SION. however.Duty Exemption Transferable DFIA Adv. It can be debited for payment of any Customs Duty on permissible imports Drawback If Cenvat Credit is availed Drawback is limited to customs duty only If Cenvat Credit is not availed Drawback is available for Customs + Excise duties paid Exemption and Neutralisation / Remission are mutually exclusive 16 8 . Autho.

Rewards/Incentive Schemes administered by DGFT Served from India Scheme [SFIS] Vishesh Krishi and Gram Udyog Yojana [VKGUY] Focus Market Scheme [FMS] Focus Product Scheme [FPS]/ Market Linked Focus Products Scrips [MLFPS] Duty Credit Scrip of 10% Duty Credit Scrip of 5% Duty Credit Scrip of 3% Duty Credit Scrip of 2% Duty credit scrips are Transferable. Applicable only for status holders of specified sectors EOU Scheme “Zero” duty for EOU/ EHTP/ STP/BTP units ‘Zero Duty EPCG Scheme’ for specified sectors ‘3% EPCG Scheme’ for all sectors 18 9 . they can be sold and premium can be earned [except SFIS] 17 Schemes specifically for import/procurement of Capital Goods EPCG Scheme Status Holder Incentive Scrip Works as “zero” duty.

Advance Authorization. EPCG) should not be charged on ad-valorem basis EDI and other IT-related issues with DGFT should be resolved Online application facility should be provided for status holder certification Offline software facility should be provided for filing applications on DGFT server Message exchange with Customs should be implemented for Chapter 3 FTP schemes Message exchange with Customs should be implemented for other variants of Advance License i.e. Application fee for export promotion-related licenses (e.Issues listed by Task Force with respect to FTP Sr.g. Annual Advance License and DFIA Status of redemption of licenses should be available on DGFT server EDI system should be developed for issuance of ARO / Invalidation under Advance/EPCG Licenses Whether implemented ( ) or pending ( ) 2. 20 10 . DEPB. Issues listed by Task Force No.. 1.

7 cases 22 11 . in the EPCG scheme Passport copy of the applicant should be accepted for issuance of IEC Requirement of submission of Chartered Engineer Certificate for issuance of EPCG licenses may be removed An annual EPCG license scheme should be devised. 10. with a corresponding export obligation 21 8. 19. specially for the service sector The norms for calculating average export obligation value under EPCG scheme need to be revised SION for fashion related goods need to be revised at regular intervals and self-certification should be allowed for para 4. 20. 9. 4. 16. 5. 11. 12. 15. 6. 18.3. Requirement of submission of Chartered Engineer Certificate with Para 4. 14. 13. Time for submission of installation certificate by EPCG holders should be relaxed in case of delays by Central Excise MDA assistance should be company-specific and not individualspecific Time taken for redemption of Advance Authorization / EPCG licenses should be reduced through better monitoring and self-certification Duplicate verification of documents by Customs after redemption of licenses to be done away with The monthly exchange rate notified by Customs may be allowed to be used for converting shipping bills into FFE.7 applications may be removed Adhoc norms should apply to all cases for the same export product upto one year in retrospect Requirement of submission of Proforma Invoice for issue of import license for restricted items may be done away with Requirement of submission of export order for issue of export license may be done away with Requirement of separate Legal Undertakings for each license and each organization may be should be done away with Priority treatment should be given to Status Holders while processing applications in DGFT and Customs Requirement of submission of hard copies of DEPB EDI shipping bills should be done away with Import of spares should be permitted without restriction. 7. 17.

22. prescribes that clubbing of Advance Authorisation and Annual Advance Authorisation is not permitted. DEPB application should be modified to include FMS/FPS percentage also. Para 3. Instead of issuing ARO etc. It was therefore recommended that A clause should be included in clubbing provisions as well as Export obligation provisions that Export or Deemed Export will qualify for discharge of export obligation against any authorisation howsoever. FMS. This seems to be anomaly.3 of FTP there are no separate categories for Advance Authorisation any more.. issued subject to time limit of 36 months for exports. RAs treat Advance Authorisations issued for intermediate supply and Deemed Exports separately and this leads to unnecessary trouble and confusion. 24. Fees for DEPB to be abolished. a simple endorsement should be done on the body of authorization. Simplification of Invalidation of Authorisations – Invalidation process should be made simpler. It was recommended to extend such facility for other Duty Credit Scrips viz. and 30 months for imports.1. FPS and VKGUY as well. 23. operationally.Local procurement is allowed under the Served from India Scheme [SFIS]. Clubbing of Advance Authorisation: As per Para 4. Even in guidelines for applicants given in the application format for clubbing.12.20 of HBPv1] do not contain such provision. DEPB Rate Schedule to be aligned to ITC HS Classification for Export & Import Items 23 25.8 of FTP: Procurement from Domestic Sources . as the basic provisions of Clubbing [Para 4.Suggestions by Sudhakar Kasture as a member of Task Force 21. Also the condition mentioned in ANF 4D for clubbing of Advance Authorisation and Annual Advance Authorisation should be deleted. ANF 4D. 24 12 . However.

Para by Para Study of Foreign Trade Policy & Procedures Chapter 1B-FTP Special Focus Initiatives 13 .

plastics.3. New point at sr. To incentivise and encourage the status holders. additional chemicals / allied products and additional engineering products.” Remarks: Addition of more products. as well as to encourage Technological upgradation of export production. 28 14 .” Remarks: Welcome provision. “The Government recognized ‘Status Holders’ contribute approx.PARA 1B.” Remarks: Good provision. toys. rubber & rubber products. sports goods. which is as under. 27 (iii) Support to status holders In the para. The imported capital goods shall be subject to actual user condition. additional duty credit scrip @ 1% of the FOB value of past export shall be granted for specified product groups including leather. handicrafts and jute.Special Focus (ii) Technological Upgradation: At the end of sub-point (a) following sentence is added. Bold sentence is added. The scheme is also being extended upto 31. The status holder incentive scrip scheme is being expanded to cover more export product groups including marine products. specific sub-sectors in engineering. textiles.3. sports goods. “(c) The facility of EPCG Scheme for Annual Requirement is being introduced to reduce documentation and transaction time. The scheme is also being extended upto 31.(c) is added. toys.no. which is as under: “This scheme is being expanded to cover more export product groups including marine products. 60% of India’s goods exports. This duty credit scrip can be used for import of capital goods by these status holders.1 . specified chemicals and allied products and additional engineering products.2012.2012.

” (vi) Handicrafts New sub point (h) is added.” Old point – “(f) Certain specified flowers. which is as under: “(h) In addition to above. in addition to the normal benefit under VKGUY.(iv) Agriculture and Village Industry Sub-point (f) of Agriculture and Village Industry is substituted as under: Substituted point – “(f) Additional flexibility for agri-infra scrip by way of limited transferability to other status holders and the units in Food Parks allowed.” Bold sentence is added “(c) Duty free import entitlement of specified trimmings and embellishments is 5% of FOB value of exports during previous financial year.” Remarks: Transferability expanded to Food Park units. 2% bonus benefits under Focus Product Scheme for Handicraft exports. fruits & vegetables are entitled to a special duty credit scrip. 29 (v) Handlooms Following new sub point is added “(a) 2% bonus benefits under focus product scheme.” 30 15 . Handloom made-ups have also been included for the entitlement.

Jewellery made out of: (a) Precious metals (other than Gold & Platinum) – 2% (b) Gold and Platinum – 1% (c ) Rhodium finished Silver – 3% 2 . which reads as under: “(b) Duty Free Import Entitlement (based on FOB value of exports during previous financial year) of Consumables.at 50% of the applicable export duty) without payment of export duty. 32 16 . (b) Finished Leather exports to be incentivized under Focus Product Scheme.” Underlined words are replaced by bold words in sub para (i) Re-export of unsold hides. Tools and additional items allowed for: 1. skins and semi finished leather shall be allowed from Public Bonded warehouse (OLD. Cut and Polished Diamonds – 1%” 31 (viii) Leather and Footwear Following two new sub points are added “(a) Additional 2% bonus benefits under Focus Product Scheme.(vii) Gems & Jewellery Bold words are added in sub point (b) under Sector (vii) Gems & Jewellery.

” 33 (xi) Sports Goods and Toys Two new sub points are added “(e) In addition to above. (vii).” (x) Electronics and IT Hardware Manufacturing Industries Two new sub points are added “(a) Export of electronic goods to be incentivized under Focus Product Scheme. (x) and (xi): Additional benefits are granted for various sectors. (viii). (vi). 2% bonus benefits under Focus Product Scheme for Sports Goods & Toys. 34 17 . (d) Electronics Sector included for benefits under SHIS scheme.” Old Para – “(e) Marine products are considered for VKGUY Scheme.(ix) Marine Products Sub point (e) is amended as under: New Para – “(e) Marine products are incentivized at special higher rate under VKGUY scheme.” Following new sub point (f) is added: “(f) Marine sector included for benefits under zero duty EPCG scheme. (f) Sports goods & Toys included for benefits under zero duty EPCG and SHIS schemes. (v).” General Remarks for point nos. (ix).

HBPv2 and Schedule of DEPB rates. These compilations. 2011. 36 18 . the Director General of Foreign Trade (DGFT) hereby notifies the compilations known as HBPv1.1 – Notification Underlined words are replaced by bold words In pursuance of the provisions of paragraph 2. as amended from time to time.Chapter 1-HBP Introduction PARA 1. except DEPB scheme. 2014. 2011.4 of FTP. Remarks: DEPB scheme extended upto 30th June. December 2010 or till a replacement scheme is announced. which shall continue to be operative till 31st. shall remain in force until 31st March. whichever is earlier 30th June.

on-site verification and access to records /documentation’ . 38 19 . nursing homes and clinics.2010 and now are reintroduced.49 – Application for Grant of Export Licence/ Certificate / Permission – In the first sentence of para mentioned after Point NO. 1940. 1940. which have usage in hospitals.words “for export of any other item which is not restricted or prohibited for export” are substituted by words “for export of items not covered under Drugs &Cosmetics Act.05. which were replaced by PN No. 64 Dtd. nursing homes and clinics. 18. Substituted words “for export of items not covered under Drugs & Cosmetics Act. which have usage in hospitals. Remarks: Reintroduction of earlier provision.Chapter 2-HBP General Provisions Regarding Imports and Exports PARA 2.”. IV of ‘procedure/guidelines for filing/evaluation of applications for entering into an arrangement or understanding for site visits. for medical and surgical purposes and are not prohibited for export” were appearing in the FTP earlier. for medical and surgical purposes and are not prohibited for export.

which defeats the purpose of EDI initiatives otherwise also.New EDI Initiatives – Deleted Deleted para reads as under: To further improve quality of services some new EDI initiatives are being taken by DGFT: Electronic Message Exchange between Customs and DGFT in respect of incentive schemes under Chapter 3 will become operational by 31st December.6 .PARA 2.70. 39 Chapter 3-FTP Promotional Measures 20 . Remarks: In practice. Customs demand certificate of genuineness from DGFT. 2009.

which are in the nature of professional equipment to the service provider.6.2 of HBPv1 is relating to Agri. (mainly off the road vehicles) 41 PARA 3.7.12.Imports Allowed Second sub-para of para 3. which reads as under: “Utilization of Duty Credit scrip earned shall be permitted for payment of duty in case of import of only those vehicles.” Remarks: Limited additional transferability provided.” Old para “Utilization of Duty Credit scrip earned shall not be permitted for payment of duty in case of import of vehicles. even if such vehicles are freely importable under ITC (HS).13. this Incentive Scrip shall be freely transferable amongst Status Holders as well as to Units (the term ‘Units’ shall not include Developers) in the Food Parks.12.4 of HBPv1 deals with ‘refusal/suspension/ cancellation of status certificate’ and Para 3. 42 21 . battery operated vehicles used to carry equipments in studios etc.PARA 3. Para no. This is an error. for import of Cold Chain Equipment.4 of HBPv1’.7. ‘3. ii) In last sub-para of para 3.13.4 following bold words are added: “However. ‘3.” Remarks: These would be vehicles similar to golf carts.Agri. Infrastructure Incentive Scrip i) In the first para. will be corrected subsequently. Infrastructure Incentive Scrip. Remarks: Para 3.4 .6 amended.2 of HBPv1’ is replaced by Para no.

8 of HBPv1 2009-14 (RE-2010) shall be eligible for this Status Holders Incentive Scrip on exports made during 2010-11 and 2011-12.(Status Holders Incentive Scrip) Bold words in first para are added: “With an objective to promote investment in upgradation of technology of some specified sectors as listed in Para 3.15. 2010-11 and during 2011-12.10.Entitlement [Focus Product Scheme (FPS)] Following sub-para is added at the end of para 3.2. Focus Product(s) / sector(s) that are notified under Table 7 of Appendix 37D shall be granted additional Duty Credit Scrip equivalent to 2% of FOB value of exports (in free foreign exchange) over and above the existing rate for that product / sector from the admissible date of export / period specified in the public notice issued to notify the product / sector.4 below.16.PARA 3.1. in the form of duty credit.” 44 22 .16.” New sub-para added: “The Status Holders of the additional sectors listed in the Para 3.15. Status Holders shall be entitled to incentive scrip @1% of FOB value of exports made during 2009-10. of these specified sectors.” Remarks: BONUS 43 PARA 3.2 New sub-para: “Further.

10.1. 46 23 . plywood and allied products. The benefits of the scheme have been extended to additional sectors such as “Chemical & Allied products. Such additional sectors shall be entitled for the benefit only on exports made during 2010-11 and 2011-12. sports goods and toys and additional engineering products”. glass & glassware. 45 PARA 3.4 Following sub-para added at the end of para 3.4: “The Status Holders of the additional sectors listed in the Para 3.16. ceramic products.16. paperboard and articles thereof.(Status Holders Incentive Scrip) Remarks: Status holder incentive scrip is further extended for one more year for 2011 – 2012 exports. rubber & articles thereof. paper. re-fractories.PARA 3.8 of HBPv1 2009-14 (RE-2010) shall be eligible for this Status Holders Incentive Scrip on exports made during 2010-11 and 2011-12. electronics products.16.” Remarks: The additional sectors shall now enjoy the benefit of Status Holders Incentive Scrip.

2 [OLD.Chapter 3-HBP Promotional Measures PARA 3.” Remarks: Para 9.2 of HBPv1 is about Denomination of Import Authorisation / Licence / Certificate / Permissions.7. as Para 9.3] and Para 9. 48 24 .7.4] shall not be applicable. Here also there is an error.Para 9.4 of HBPv1 is related to supplementary claims.2 – (VKGUY) Third para of Para 3. which reads as under: “Applications received after the last date shall be summarily rejected.3 of HBPv1 is related to imposition of late cut. as Para 9.2 of HBPv1 is amended. Para 9.3 [OLD-Para 9.

” Old para 3.1A of HBPv1.10. 49 b) Similarly for SHIS Applications for exports made during 2010-11 & 2011-12 filed late (i.10.2013) as the case may be.4.4 of HBPv1) and where Zero Duty EPCG Authorisation has been issued to the applicant by any RA during the relevant year (i.3 amended to read as under: Amended Para: “The last date of filing the application shall be 31st March 2011/2012/2013 for SHIS scheme for exports made during 200910/2010-11/2011-12 respectively.PARA 3. after the prescribed dates of 31st March 2012/2013 respectively).Procedure for Status Holders Incentive Scrip Para 3. including any supplementary claim under Para 9.10 .2011 till 31.1A of HBPv1: a) Para 9. Para 9.” 50 25 .3 shall not be applicable in cases where Zero Duty EPCG Authorisation has been issued to the applicant by any RA during the year 2011-12 (from 1.4. SHIS application shall be summarily rejected in view of fourth sub-para of Para 5.2012 till 31.3 of HBPv1 shall not be applicable for SHIS Scheme in cases where the SHIS application (say for exports made during 2009-10) has been filed after the prescribed date (i.2011). in view of fourth sub-para of Para 5.e.3.3.4.2010 till 31.3.e. as the case may be). during 2010-11/2011-12/2012-13 respectively. after 31st March 2011) and Zero Duty EPCG Authorisation has been issued to the applicant by any RA during the year 2010-11 (from 1. c) In case SHIS Application is filed within the prescribed date (for exports made during 2009-10/2010-11/2011-12 as the case may be.2012) or 2012-13 (from 1.e. Further.3: “The last date of filing the application shall be 31st March 2011 for SHIS Application on exports made during 2009-10 (and 31st March 2012 for SHIS Application on exports made during 2010-11).

Zero Duty EPCG Scheme is availed in the particular period i. 2010–11. which please note. − In case. it is filed beyond prescribed last date of application. 51 PARA 3.10. 2011–12 & 2012–13. Provision of late cut is not applicable.8 – New para added The following additional sectors shall be eligible for Status Holders Incentive Scrip on exports made during 2010-11 and 2011-12: Contd……. 52 26 .Remarks: Date of filing of application would be within one year of the year of exports effected.e. Duty credit scrip applications shall not be considered: − In case.

05079010. 3604. 32030010. Processed minerals. 96062910 and 96063010) (ix) Ossein & Gelatine ITC(HS) 4001 to 4010. 4014 to 4017 3208. Various codes 23011090. 85451100 and 85451900) & Various codes Explosives (Codes 3601. 3210 Chapter 70 Chapter 44 Chapter 69 Chapter 48 Chapter 49 05069099. & 38021000) 53 Contd…… 2 3 4 Electronics Products Sports Goods and Toys Chapter 95 and Codes 420321. No. Varnishes & Allied Products (iii) Glass and glassware (iv) Plywood and allied products (v) Ceramics / refractories (vi) Paper. Paper Boards & Paper products (vii) Books. Publications & Printings (viii) Animal By-products (Codes 35030030. 05079020. 23011010. Various codes 3605. Granite/Stones. (ii) Paints. 05079050. Codes 05061039 and 35030020 (x) Graphite Products (Codes 3801. 3602 and 3603) (xi)Misc. 650610 Engineering products for the three groups Chapter 72 indicated below (i) Iron and Steel (ii) Pipes and tubes (iii) Ferro Alloys Remarks: SHIS is now extended to above mentioned additional sectors.Sl. Clinkers and asbestos) (i) Rubber products. 54 27 . 3209. Cement. 1 Products / Product Groups Chemical & Allied Products (other than Bulk minerals. Products (Codes 3201. 32029010.

PARA 3.11. Contd…… 55 Further for products. as admissible.82 dtd. such a declaration will not be required. 37C.11 . Moreover for exports made prior to date of notification of products / markets.e.16. declare that I/We shall claim the benefits. This declaration shall not be required for export shipments under any of the schemes of Chapter 4 (including drawback) or Chapter 5 of FTP. Contd…… 56 28 .f 1st January 2011. 37D). exporters shall declare their intention to claim benefit by stating in all categories of Shipping Bills as under: ‘I/We.Common procedural features for promotional schemes.2010 and other paras are newly introduced: “For export shipments filed under Free Shipping Bill category. unless specifically provided for: PARA 3. for exports of products / to markets eligible under Chapter 3 of FTP (Appendix 37A. only after a grace period of one month from the date of relevant public notice. this declaration shall be necessary for exports under Free Shipping Bills. under Chapter 3 of FTP’. declare that I/We shall claim the benefits. 37C. 37D that are eligible for benefit under Chapter 3 of FTP. markets notified during the year. Newly introduced paras are : For exports made w. since export shipments under Free Shipping Bills have already taken place.Declaration of Intent on Free Shipping Bills Bold paras are reintroduced which were deleted and replaced vide PN. applicable to all schemes in this chapter.8 . as admissible. hereby.07. the exporter shall state the intention to claim benefits under Chapter 3 of FTP by declaring on the Free Shipping Bills as under: ‘I/We. hereby. under Chapter 3 of FTP’. the above Paragraph shall be replaced as under: ‘For products/markets listed in Appendix 37A.

No claim under Chapter 3 shall be admissible without this declaration. However. Further.e. the declaration of intent shall be necessary for exports under all categories of Shipping Bills only after a grace period of one month from the date of relevant Public Notice which notifies such product / market. such a declaration will not be required since export shipments have already taken place. 57 Chapter 4-FTP Duty Exemption & Remission Schemes 29 . For exports made prior to date of notification (i. for products / markets notified during the year.This declaration shall also be required on export shipments under any of the Schemes of Chapter 4 or Chapter 5 or Chapter 6 of FTP as well as on Bills of Exports filed for Supply to SEZ. Schemes names are not required to be mentioned in the declaration of intent.’” Remarks: Procedural clarification. the date of the relevant Public Notice which notified such product / market).

if any. since goods imported are not meant for domestic consumption.PARA 4. Imports are exempted from payment of basic customs duty. antidumping duty and safeguard duty.1 – Word in bold is deleted from the sentence “Replenishment authorisation may also be issued for consumables & tools as per paragraph 4A. “Advance authorisation can also be issued for annual requirement. Remaining sub paras remain unchanged. which was otherwise due. 60 30 .” Remarks: This is just compliance. additional customs duty. 59 GEMS AND JEWELLERY PARA 4A.1.Advance Authorisation for Annual Requirement Sentence in bold is added in first sub para. education cess.1.28 of HBP v1.” Remarks: Tools are not “inputs” and hence this deletion.10.

Entitlement i) Words in bold are added in the second sub para “However.Chapter 4-HBP Duty Exemption & Remission Schemes PARA 4. both with retrospectively as well as prospectively.” Contd…… 62 31 .7.1 . such norms shall be valid for a period of one year.7. in cases where NC has already ratified norms for same export and import products in respect of an authorization obtained under paragraph 4. reckoned from the date of ratification.

” Remarks: Long overdue amendment – finally approved.7. authorisations are required to have been issued under similar Customs notification even pertaining to different financial years.Entitlement ii) Sentence in bold is added at the end of third sub para “In such cases Authorisations shall be issued by RA concerned under "Adhoc Norms Fixed" category and application copies need not be forwarded to NC for fixation / ratification of norms.PARA 4.Facility of Clubbing Sentence in bold is added at the end of the para “Facility of clubbing shall be available only for redemption /regularisation of cases and no further import or export shall be allowed. provided the provision is implemented in true spirit.” Remarks: This would solve the problems of pending cases for redemption purposes. For this facility. However in case of Authorisations issued in 2004-09 period and thereafter. Advance authorisation for annual requirement can also be clubbed with the advance authorisation. Advance Authorisations with different customs notification can be clubbed.20 .1 . 63 PARA 4. 64 32 . the RA shall finalise the case as per the norms subsequently ratified by NC in a similar case. Where the application has already been forwarded before the ratification of Norms.

65 GEMS AND JEWELLERY PARA 4A.28 . Words in bold are added in the first sub para “A replenishment authorization for duty free import of Consumables. This Authorisation shall be non. Poly bag (as notified by Customs) for Jewellery made out of precious metals (other than Gold & Platinum) equal to 2% and for Cut and Polished Diamonds and Jewellery made out of Gold and Platinum equal to 1% of FOB value of exports of the preceding year. entitlement will be 3% of FOB value of exports of such jewellery.PARA 4. Tags and labels.21 .Enhancement/ Reduction in the value of Authorisation Bold words are deleted.” Remarks: Good Provision 66 33 . However. only – procedural simplification.transferable and subject to actual user condition. may be issued on production of Chartered Accountant Certificate indicating the export performance. in the first sentence of this para “In respect of an Advance Authorisation. Staple wire. in case of Rhodium finished Silver jewellery. RA concerned (as per their financial powers) may consider a request for” Remarks: All enhancement / reduction to be carried out by regional authority. Security censor on card. Tools and other items namely.Replenishment Authorisation for Import of Consumables etc.

rubber & articles thereof. basic chemicals & pharmaceuticals. The added products are marked in bold.1 – Zero duty EPCG Scheme i) The additional products are added in second sub para. refractories. I.Chapter 5-FTP Export Promotion Capital Goods Scheme PARA 5. marine products. paper & paperboard and articles thereof. apparels & textiles. plywood and allied products. ceramic products. handicrafts. “The scheme will be available for exporters of engineering & electronic products. Contd……… 68 34 . glass & glassware. chemicals & allied products. sports goods and toys subject to exclusions as provided in HBP Vol. leather & leather products. plastics.

the operational period of “Zero duty EPCG Scheme” is extended for the further period of one year.03. both under zero duty and 3% duty Schemes. New sentence of third sub para: The zero duty EPCG scheme will be in operation till 31. The annual entitlement in terms of duty saved amount shall be upto 50% of FOB value of Physical Export and / or FOR value of Deemed Export.ii) In third sub para. 69 PARA 5.2012. The old and new sentence is as under: Old sentence of third sub para: The zero duty EPCG scheme will be in operation till 31. in preceding licensing year. which reads as under: “EPCG Authorization can also be issued for annual requirement to Status Certificate Holders and all other categories of exporters having past export performance (in preceding two years).2012.3.” 70 35 .2011. Remarks: Zero Duty EPCG scheme has been extended by one more year till 31.2D – EPCG Authorization for Annual Requirement New para added.3.

71 Chapter 5-HBP Export Promotion Capital Goods Scheme 36 .2D – EPCG Authorization for Annual Requirement Remarks: Good provision.PARA 5. It will reduce paper work against filing of multiple applications and monitoring thereof. It is applicable only to the Status Holder AND other categories of exporters having export in atleast preceding two years. instead of multiple individual applications. It will also reduce transaction time and cost. The upper limit of duty saved amount for the purpose of EPCG authorisation is limited to 50% of preceding year’s exports. Exporter shall now have the flexibility to get a high value EPCG authorisation by filing application on Annual basis.

7802. 4 to 24. 98. 40. 49. zero duty EPCG Scheme will be available for handicraft exports under Chapters 5. 43. it is necessary to check the exclusion list carefully before availing of Zero Duty EPCG Scheme. Since there is addition and deletion in Chapters and ITC (HS) codes. 69. 68. 44 (except plywood and allied products). The amended paras are as under: “Chapters 1.” 73 Remarks: Benefit of the scheme is expanded to cover paper & paperboard and articles thereof. 7901 to 7903. rubber & articles thereof. 97. 70 ITC (HS) added under exclusion 4011 to 4013. plywood and allied products. (The list is given below) Chapters deleted from exclusion 3. 8002 and 8401. 71. 7224 list to 7226 Chapter deleted from Zero EPCG 44 Scheme for Handicraft Exports 74 37 . 45. 81 (metals in primary and intermediate forms only). marine products. 48. 31. 89. 7801. 7218 to 7220. 2. 97. 93. 7601 to 7603. ITC(HS) 4011 to 4013. glass & glassware. list ITC (HS) deleted from exclusion 7201 to 7212. 8001. 7501 to 7504. refractories. 25 to 27. ceramic products. sports goods and toys and additional engineering products. However. 68. 44 (except plywood and list allied products). ITC(HS) 7401 to 7406.PARA 5. 47.1A – Exclusions under Zero Duty EPCG Scheme Second and third sub paras are amended.

Details of products proposed to be exported should be given while filing initial application. The applicant would be required to indicate export products proposed to be exported under the authorization. Nexus certificate as per prescribed format is to be submitted at the time of physical import. The authorization holder shall also be required to submit a Nexus Certificate from an independent Chartered Engineer (CEC) in Appendix 32A. within 30 days from the date of import of the Capital Goods. In other words. nexus will be monitored by Customs instead of Regional Authority.PARA 5. Thereafter. copy of the same should be submitted to RA along with Bill of Entry. 76 38 . at Customs authority instead at initial stage of application with concerned RA. within 30 days of import. 75 Remarks: Procedural simplification. which reads as under: “The Authorization for Annual Requirement will be issued subject to the following conditions in addition to other terms and conditions governing the EPCG scheme:Authorizations shall be issued with a specific duty saved amount and corresponding export obligation. A copy of the CEC shall be submitted to the concerned Regional Authority along with copy of the bill of entry. It will reduce the application fees substantially.” Contd……. This provision would be very useful to large companies where all details of imports are not finalised in advance. to the Customs authorities at the time of clearance of imported capital goods. Now EPCG authorisation for annual requirement can be granted upto 50% (duty saved value) on FOB value of preceding year’s exports. Very welcome provision.2A – EPCG Authorisation for Annual Requirement New para added.

Recipient may also claim benefits on production of a suitable disclaimer from supplier in the format given in Annexure III of ANF 8 along with a self declaration in the format given in Annexure II of ANF 8 regarding non-availment of CENVAT credit in addition to prescribed documents. it shall furnish self certified copy of valid RCMC.3.” Remarks: Good procedural simplification. 78 39 . Where applicant is branch office or manufacturing unit of a supplier. shall be made by Registered office or Head office or a branch office or manufacturing unit of supplier to RA concerned.1 – Procedure for claiming Deemed Exports Drawback & Terminal Excise Duty Refund / Exemption First point of the para is substituted as under Words in bold are added “An application in ANF 8 along with prescribed documents.Chapter 8-HBP Deemed Exports PARA 8.

Board of Trade Chapter 2-FTP .Deemed Exports Chapter 9-FTP . Software Technology Parks (STPs) and Bio-Technology Parks (BTPs) Chapter 8-FTP .Definitions Chapter 9-HBP .General Provisions Regarding Imports and Exports Chapter 6-FTP and HBPv1 .NOTE: There are no practical changes made in the following chapters: Chapter 1C-FTP .Miscellaneous Matters 79 Updates on SEZ 40 .Export Oriented Units (EOUs). Electronics Hardware Technology Parks (EHTPs).

textiles.324 1. + 12 State/Pvt.668 1. remaining are IT/ITES.12. Gem& Jewellery SEZs and other sector specific SEZs) Units approved in SEZs as on 30. of valid formal approvals – 576 No.2009 – 114 (Out of these 14 are multi-product SEZs. SEZs) No.in 81 SEZs-Area Requirement SEZ Area Estimates [approx] (in hectares ) 69.048 Source: www. Biotechnology.98.06.2010 – 358 (out of 575) + (7 Central Govt. of valid in-principle approvals – 155 Operational SEZ as on 31.2010 – 3. Engineering. electronic hardware.992 Formally approved and notified SEZs In-principal approvals Total Area for proposed SEZs 82 41 .29. of Notified SEZs as on 20.nic.Fact Sheet on Indian SEZ No.sezindia.07.

Fact Sheet on Indian SEZ Total Investment made in notified SEZs (as on 30th June 2010) Employment created in notified SEZs (as on 30th June 2010) Employment in Govt. 1.711.00. SEZs Rs.87 2.327 persons 83 Fact Sheet on Indian SEZ Exports from the functioning SEZs during the last three years are as under: Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 Exports (Rs.71% 52% 93% 50% 121.738 persons 2.Rs. crores) 13.55 cr 2.46 crore 84 42 .685.840 34615 66638 99688.39 Growth Rate of exports 39% 32% 24. 58.854 18.314 22.2010 .89.20.40% Exports in 2010-11 as on 30.06.744.49.

86 43 .Changes effected till August 2010 SEZ Draft Guidelines Dtd. 2009 and were circulated to SEZ Developers. revised draft guidelines are issued by this notification.13. On getting suggestions from the SEZ developers.09 Guidelines for Development of SEZs Draft Guidelines were issued by the Ministry of Commerce and Industry (MoC&I) on 5th August.11.

and branches in Special Economic Zones by Banks.2010 MoC&I specified acts or omissions punishable under the Foreign Trade (Development and Regulation) Act.2010 Very important amendment.O. 2005 have been operationalised Sections 20-Agency to inspect Section 21-Single enforcement officer or agency for notified offences Section 22-Investigation. No. 03.01. 527 Dtd. 76 Dtd. 2003.O.O. 2005. 1992 (28 of 2005) as notified offences for the purposes of the Special Economic Zones Act. 2010 following sections of SEZ Act.2010] committed in a SEZ. 228 Dtd. not licensed as Offshore Banking Units.O. 1949. 75 Dtd.01.01.O. 13. S. 78 Dtd.01.2010 On 13th January. 03. 13. 13. S. 77 Dtd. SEZs are authorized as deemed licensee for the purposes of distribution of electricity. 88 44 .03. 2005) need not make application for obtaining licence for distribution of electricity under clause (b) of Section 14 of the Electricity Act. S. with the prior permission of the Reserve Bank of India under section 23 of the Banking Regulation Act.O.2010 Director STPI would no more be In-charge of SEZ particularly IT/ ITES/ Software SEZs. 13. inspection and search or seizure. Hence notified SEZs (notified under sub-section (1) of section 4 of the SEZ Act.S. 13.01. S.O.2010 MoC&I authorizes Development Commissioner [DC] to be the enforcement officer in respect of the notified offences [as given in S. No.03. 76 Dtd. 2005 (definition of “offshore banking unit”) would not apply to offsite Automated Teller Machines [ATM] in the Special Economic Zones.2010 Clause (u) of section 2 of the Special Economic Zones Act. 87 S.

By this notification. 8.S.2010. 2006 Rule 3. The inserted proviso prescribes minimum built up area for SEZs located in the cities as categorized under Annexure-IV. 14.2010 – Amends Rule 5 (2) (b) of SEZ Rules.G. provided maximum area of FTWZ should not be more than 20% of processing area. 113 Dtd. 11 and 12 are amended and Rule 3A.2010 – Amends SEZ Rules. 597(E) Dtd. 90 45 . following Forms are also added. The proviso says that in SEZ for a specific sector.06.R.07. 501(E) Dtd. 12. 89 G. Form-A1 Form-C1 Form-C2 Form-C3 Form-C4 Form-C5 Form-C6 Form-C7 APPLICATION FORM FOR APPROVAL OF CO-DEVELOPER APPLICATION FOR EXTENSION OF VALIDITY OF APPROVAL GRANTED UNDER RULE 6(2)(a) APPLICATION FOR EXTENSION OF VALIDITY OF APPROVAL GRANTED UNDER RULE 6(2)(b) APPLICATION FOR SEEKING CHANGE IN SECTOR APPLICATION FOR INCREASE IN AREA APPLICATION FOR DECREASE IN AREA APPLICATION FORM FOR DENOTIFICATION APPLICATION FOR APPROVAL OF AUTHORISED OPERATIONS Explanation on each amendment/insertion of rule is provided in EPCES Cir. 9. 6A and 78 are inserted. 2006 This notification amends Rule 5 (2) (b) related to sector specific SEZ. No. now after amendment.R. 5.S.07. This criterion under third proviso was applicable to Sector Specific SEZ. Annexure IV is also inserted by this notification. 14. FTWZ may be permitted with no minimum area requirement. 6. The minimum built up area prescribed is as under: B1 category cities B2 category cities 50% of the area specified in Rule 5(2)(b) 25% of the area specified in Rule 5(2)(b) Third Proviso of Rule 5(2) (c) related to FTWZ is also amended. this provision is made applicable to SEZs “having area less than 1000 hectares”.

) Cir. NO. In this circular it was clarified that SEZ developers are allowed to open. Finance Minister has proposed in Revised DTC paper for discussion. No. This would practically close the door for new investment in the SEZ and hence.Revised discussion paper on Direct Tax Code. provision to protect profit linked deductions of units already operating in SEZs. Dr. For setting up a unit in the SEZ. hold and maintain EEFC account and to credit up to 100% of their foreign exchange earnings. This amendment only meets the requirement of SEZ partially. 112 DTD. in Chapter VII that. it has been decided not to extend the scope or the period of profit linked deductions. EPCES CIRCULAR NO. 104 DATED 2-3-2010 IT/ITES SEZs can also house electronic hardware units in these SEZs. Singhal DG. 16. released by Ministry of Finance on 15-6-2010. 92 46 . 100 Dtd. 08. permission can be given by Board of Approvals. he has further clarified that since Profit linked deductions are distortionary in nature as they create an incentive to inflate profit as well as to transfer profits from a taxable entity to a non-taxable one.EPCES Cir.01.P.06. 2010.06.12. for the unexpired period. L. as it protects only the existing SEZ units. However. Very important circular relating to revised discussion paper on Direct Tax Code (DTC) released by Ministry of Finance on 15th June.2010 .2009.2010 This circular is issued referring A. (DIR Srs.2010. EPCES. 29. where Industrial Licence is required.B. 91 EPCES CIR. has invited representations from the Industry upto 30. will be incorporated. No. 22 Dtd.

10. it is clarified that import of jewellery and its remaking is an authorised manufacturing activity by an SEZ unit holding letter of approval for manufacturing of jewellery. basis.Procedure for consideration of operational issues regarding SEZs.11. 41 Dtd. especially Hazardous Waste (Management. 39 Dtd. on a case to case. 01. in such cases. following recommendations are made by the Ministry of Environment and Forests [MOEF]. 40 Dtd.09. SEZ unit will have to get the computations certified by the Authorised Bank. This is to establish a nationwide integrated e-governance solution for the administration of SEZ and to facilitate speedy processing of transactions of SEZ Developers SEZ units. 11.2009 . 37 Dtd.Clarification on calculation of NFE as per Rule 53 of the SEZ Rules. re-melt. Instruction No.2009 . 38 Dtd.2009 – Clarification on whether import. Instruction No. Officers of the State Pollution Control Boards [SPCBs] are advised to attend the meetings of the Approval Committee and assist the Development Commissioner [DC] in ensuring compliance of the environmental regulations.09.SEZ Online Project.09. SPCBs are also advised to monitor the units which are recycling/ reprocessing imported waste on a regular basis. the matter should be referred to Unit Approval Committee [UAC] or Board of Approval [BoA] and not to the individual Departments of Government of India. Further import would include re -import of exported jewellery. 11.2009 .Instruction No. MoC is executing agreement with NDML for SEZ online project. Very important instruction. 93 Instruction No.2009-Effective implementation of the Hazardous Waste Rules. For approvals or operational issues related to SEZ. re-make and export of imported finished jewellery is an authorized activity in SEZ In view of the provisions contained in Section 2(r) of SEZ Act. Instruction No. 07. In cases where SEZ unit achieves negative NFE due to foreign exchange fluctuations. 2008. Handling & Transboundary Movement) Rules. However. 2006 NFE is to be calculated in rupee terms only. they can approach Approval Committee. 2005 read with Rule 27(1) of SEZ Rules. 13. 2008 For ensuring compliance with Hazardous Waste Rules. 94 47 . 2008.

Information regarding staffing positing in SEZs. All requests for carrying out authorized operations.19 B. Instruction No. INFORMATION on CST claims and drawback H. Other Permissions C. By Zonal DCs G. information relates to built up and land space] 96 48 .11.11. 18. which are outside their powers with their recommendations. 44 Dtd. Statement on monthly Data on Export Duty. Permissions under Rule 74 D.2009 . Following is the list of these formats. The DCs will send only such requests/items for consideration by BoA. 23.11. Format of monthly reports to be furnished By DCs A. Approval of activities under SEZ Rules 17 & SEZ Rules 18. are to be made initially to the concerned Development Commissioner [DC].Reports to be furnished by DCs for review/monitoring of performance of SEZs DCs are required to submit monthly reports for reviewing/monitoring of performance of SEZs in the prescribed forms A to F. [No title is given. Further. however. Import Duty and Duty Foregone E. 42 Dtd.Procedure for seeking clarification on policy issues relating to SEZ Act and Rules from Department of Commerce.Guidelines for consideration of proposals for authorized operations by the BoA. 24. 43 Dtd. whether covered in the default list or not. This is to facilitate speedy disposal at the hands of Zonal DC related to procedure for seeking clarification on policy issues relating to SEZ Act and Rules from Department of Commerce 95 Instruction No. formats of which are given in the Instruction. Statement in respect of SEZ Developers coming under the Jurisdiction of DC I. Import and Export Data F.Instruction No.2009 .2009 . Zonal DCs are also required to submit such reports in the Format G and H.

2010 . Items which are prohibited for import can also be imported by SEZ Units if such imports are made for manufacturing export goods. 98 49 .2010 .03.Procurement. Small and Medium Enterprises Development Act. SEZ should give preference to “small scale units” as defined under the Micro. 46 Dtd. DTA units can also supply restricted raw materials to SEZ unit for undertaking a manufacturing operation except refrigeration. However for all the above activities Prior Approval from Board of Approval is required. DCs of the IT/ITES SEZs are required to ensure that the IT/ITES SEZs are advised to set up incubators of size of minimum 200 seats and the minimum 10% of the space in the SEZ may be reserved for SSI IT/ITES units. cutting. 2006. In respect of supply of Restricted Items by a DTA unit to SEZ Developer/Unit.Setting up of small scale units in Central Government SEZ Development Commissioners of Central Govt. the DTA unit can supply such items to a SEZ Developer or unit for setting up of infrastructure facility or for setting up of a unit. 97 Instruction No. 47 Dtd. All other SEZs should allocate 10% space to SSI units. 12. 04.Instruction No. polishing and blending.01. Import and Export of Prohibited and Restricted Goods Export of prohibited items is permitted provided required raw materials are imported. Import and Export of Prohibited and Restricted Goods Following clarifications are provided in respect of procurement.

03. 100 50 . 12. 99 Instruction No.47 Dtd. Import of prohibited items will be as per Rule 27. 51 Dtd. remelting. 25. for remaking. polishing. Rule 26 and Instruction No. imported by G&J units in respect of goods to be manufactured by them Important circular for G&J units in SEZ. 20.03. This is because IT/ITES includes both Hardware and Software. 04. blending etc.04. In this connection.2010. The Approval Committee considers the same before granting Approval for issue of LOA.Clarification on broad. etc.2010 . No approval for procurement of service “Rental” of immovable property for office outside the Special Economic Zone/FTWZ can be given.2010 . Requests for allowing cutting.2010 . In terms of Rule 17 of the SEZ Rules SEZ units are required to file a declaration in Form-F while submitting an application for setting up of a unit. broken jewellery etc.Declaration of Raw material components etc. Diesel is permitted to be procured for authorized operations in the processing area including material handling equipment. procedure prescribed in this instruction should be followed by all G&J units for bringing in jewellery. Trading and Warehousing units located within FTWZ can carry out DTA to FTWZ and FTWZ to DTA transactions.Instruction No. 49 Dtd. repairing.Clarifications on FTWZ issues Ministry of Commerce & Industry has issued clarification on following issues related to FTWZs. Instruction No. There are no limitations on Units set up in FTWZs located in Sector Specific SEZs to carry out Trading and Warehousing Activities in respect of any product. as part of authorised operation of a FTWZ unit can be considered by the Approval Committee on a case to case basis based on the merits of the case.banding in IT/ITES Sector SEZ It is informed by this instruction that no approval of BoA is required in case of developers in IT/ITES sector to broad-band their product profile by including electronic hardware. 52 Dtd.03.

501 Dtd. 25.16.2010 – Allowing of authorized employees of IT/ITES units in SEZ to work from home.07. 11. 14. 102 51 . 58 Dtd. No.06. 36 Dtd.16. 61 Dtd.05. 18. Following instructions are withdrawn Instruction No.06.2010. It is also stated in the instruction that IT units in DTA can carry out their job-work in a SEZ Unit by following procedures mentioned in Rule 43 of SEZ Rules.Validity of Formal Approval This is because issues addressed in these instructions are now considered and carried out in the SEZ Law.R. 2006 by G. 03. Instruction No.Requests for transfer of units from one SEZ to another SEZ Board of Approval [BoA] permits shifting of units from one SEZ to another SEZ.S. Off-site employees of the IT/ITES units in SEZ are also permitted to work from home or from place outside the SEZ. by amending the SEZ Rules. DTA Supplier and Buyer.2009 – Guidelines regarding “Putting up of a boundary wall” Instruction No.2009 .07.2010 . 06. Doubt raised by the FTWZ Developers: Whether units in the FTWZ can hold goods on behalf of Foreign Buyer.2009 – Guidelines for dealing with “Requests for change in area of SEZs” Instruction No.09.2010 – Clarification on holding of goods by units in FTWZ. 59 Dtd.24 Dtd.06. 2006. 16 Dtd. 21.07. 25 Dtd.2009 – Instructions regarding proposals to be considered by BoA Instruction No. Instruction No. 14. Clarification provided by Department of Commerce: Subject to provisions of Rule 18 (5) of SEZ Rules. 24 and 16.07. provided all such proposals are placed before the BoA.60 Dtd. 2006. 36.Instruction No.2010 – Withdrawal of Instruction Nos. FTWZ units can hold goods on behalf of foreign supplier and buyer and DTA supplier and buyer. 101 Instruction No.

2010. 2006 Procedure for removal of goods from SEZ unit to the Bonded Warehouse under Rule 46 (13) of SEZ Rules. It is decided that Department of Commerce will create consensus of all concerned Departments and will send the recommendations and No Objection of concerned Departments of Government of India to the Ministry of Home Affairs [MHA] for final approval and MHA would get the assent of the President on the Bill. 23.07. 10. but in wisdom. we can see it. while we cannot undo what is done.08.08. This is regarding faster procedure for clearance of State SEZ Bill. 64 Dtd. 11.Procedure regarding removal of goods to bonded warehouse under Rule 46(13) of SEZ Rules. learn from it and change.” . fear or anger. So that every new moment is spent not in regret.Instruction No. understanding and love. 103 Thought for the Day… “The beauty of life is.2010 – Role of Zonal DCs This Instruction is about responsibilities allocated to the Zonal Development Commissioner [DC]. 2006 has been prescribed in this Instruction. guilt. 62 Dtd. understand it.Buddha 104 52 .2010 – Procedure for clearance of State SEZ Bills. Instruction No. Instruction No. 63 Dtd.

co.co. Indsearch. EPI Centre.Head Off. Law College Road.Branch Off. Andheri (East).in Pune . Pune 411004. Tel: 022-28507615/28507329/65769126 Fax: 022-28506419 E-mail: exim@helplineimpex. Andheri-Kurla Road. Tel: 020-65246159 Fax: 020-25465195 Email: eximpune@helplineimpex. Next to Star TV Office. Everest Chambers. Mumbai – 400 059. A-203.in 106 53 . Opp. Near Marol Naka.105 Sudhakar Kasture Mumbai .

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