TIOL-DDT 1048 · Monday, 9 February 2009 · story 3 of 6

Now it reads as, "The persons authorised by the Development Commissioner shall only be allowed to enter the processing area of a Special Economic Zone”

Housing for Staff in SEZ : A new proviso is added to Rule 11(10), that the Developer or Co-Developer shall strive to provide adequate housing facilities not only for the management and office staff but also for the workers of the Special Economic Zones Units.

Registered Lease Deed: As per the Proviso to Rule 18(2), “Provided further that a copy of the registered lease deed shall be furnished to the Development Commissioner concerned within six months from the issuance of the Letter of Approval;” Now this is changed to "Provided further that a copy of the registered Lease Deed shall be furnished to the Development Commissioner concerned within six months from the issuance of the Letter of Approval and failure to do so, the Approval Committee may take action to withdraw the Letter of Approval after giving an opportunity of being heard."

Approval: As per Proviso to Rule 19(2), “the Approval Committee may also approve proposal for broad- banding, diversification, enhancement of capacity of production, change in the items of manufacture or service activity, if it meets the requirements of rule 18”; now this is changed to, “Provided that no such approval shall be granted by the Approval Committee in those cases which fall within the competence of the Board of Approval”

Import to SEZ – A major Blunder corrected: As per Rule 28(7), “Where import cargo destination is other than the Special Economic Zone , delivery shall be allowed at the destination port or airport on the strength of Bill of Entry assessed by Special Economic Zone Customs without any Transshipment Bond” ; Now the “other than the Special Economic Zone ” is amended to “Where import cargo destination is the Special Economic Zone ....” . Apparently all the Customs Clearances to SEZ in the ports were wrong – and this went unnoticed for nearly three years.

Re-import of exported goods when payment not forthcoming or change of fashion: Rule 29(7)stipulated that , “A Unit may import the goods exported by it which are either found to be defective or damaged by the overseas buyer or have not been taken delivery of by the overseas buyer, by following the procedure under sub-rule (2) and subject to the following conditions; Now this is amended to , “A Unit may import the goods exported by it which are either found to be defective or damaged by the overseas buyer or have not been taken delivery of by the overseas buyer or when the payment is not forthcoming from the buyer as per agreed schedule after having taken delivery of goods or when buyers return goods due to change of fashion and other market factors by following the procedure under sub-rule (2) and subject to the following conditions, namely”

Destruction of Goods – at least seven days notice: As per Rule 39(1), “After advance intimation to the Specified Officer, a Unit may destroy, without payment of duty, goods including capital goods, procured from Domestic Tariff Area or goods imported or goods manufactured or produced by the Unit including rejects or waste or scrap or remnants within the Special Economic Zone” Now it is stipulated that the advance intimation should of of not less than seven days.

Return of exported jewellery – time extended to one year from the present six months. Rule 46 amended.

Valuation for DTA Clearances: As per proviso to Rule 48(2), “where the goods are supplied in Domestic Tariff Area by a contract manufacturing Unit on the instructions of an Overseas entity, the Bill of Entry shall be filed by the Domestic Tariff Area buyer on the basis of transaction value recorded on the commercial invoice issued by the Overseas entity”. This proviso is now omitted.

Department of Commerce Notification Dated: February 3, 2009