PRESENTATION ON SEZ

BY THE SEZ DIVISION

INTRODUCTION OF SPECIAL ECONOMIC

ZONE (SEZ)

• SPECIAL ECONOMIC ZONES (SEZ) ARE THE GROWTH ENGINES THAT CAN BOOST MANUFACTURING, EXPORTS AND GENERATE EMPLOYMENT.

• THE PRIVATE SECTOR HAS BEEN ACTIVELY ASSOCIATED WITH THE DEVELOPMENT OF SEZs.

• THE SEZ SCHEME IS COVERED BY SPECIAL ECONOMIC ZONE ACT 2005 AND SPECIAL ECONOMIC ZONE RULES, 2006. BOTH THE ACT AND RULES CAME INTO EFFECT FROM 10.02.2006.

• FOR THE PURPOSE OF TARIFF AND TAXATION, THE SEZ IS TREATED AS A FOREIGN TERRITORY. IT WOULD BE UNDER THE PHYSICAL CONTROL OF A SPECIFIED OFFICER (ASSTT. / DEPUTY/ JOINT COMMISSIONER OF CENTRAL EXCISE) AND AUTHORISED OFFICER (SUPDT. / INSPECTOR OF CENTRAL EXCISE) POSTED AT THE ENTRANCE OF THE SEZ.

• THE ENTRY INTO SEZ IS ALLOWED ONLY THROUGH AN ENTRY PASS ISSUED BY THE CUSTODIAN OF THE SEZ.

• FOR PERMANENT EMPLOYEE OF THE DEVELOPER, THE ID CARD WILL BE ISSUED BY THE DC.

• SIMILARLY, MOVEMENT OF GOODS INWARD AND OUTWARD WILL ALSO BE REGULATED BY GATE PASS/CHALLANS, AUTHORISED BY THE OFFICER POSTED AT THE ENTRY AND EXIT GATE.

• SALE OF GOODS FROM SEZ TO DTA UNIT WILL BE ALLOWED SUBJECT TO PAYMENT OF CUSTOMS DUTY AS IF IT IS IMPORTED FROM ABROAD.

• THE SEZ ACTIVITIES WILL BE PHYSICALLY MONITORED JOINTLY BY THE DEVELOPMENT COMMISSIONER AND COMMISISONER OF CENTRAL EXCISE FROM MINISTRY OF FINANCE WHOSE OFFICIAL WILL BE PRESENT IN THE SEZ THROUGHOUT.

SPCL GROUP IS DEVELOPING SEZ’s UNDER SPECIAL PURPOSE VEHIVLE (SPV) FORMED TO DEVELOP AND MANAGE THE IT/ITES SEZ’s. THE DETAILS OF WHICH ARE AS UNDER:-

• THE MANJRI STUD FARM PVT. LTD, PUNE - THE SAME IS OPERATIONAL. ALL THE NECESSARY PERMISISON, APPROVAL, BOND HAVE BEEN OBTAINED FROM THE DEVELOPMENT COMMISSIONER.

• THE KOLLAND DEVELOPERS PVT. LIMITED, NAGPUR – THE SAME IS OPERATIONAL. ALL THE NECESSARY PERMISISON, APPROVAL, BOND ETC. HAVE BEEN OBTAINED FROM THE DEVELOPMENT COMMISSIONER.

• SUNNY VIEW ESTATES PVT. LIMITED, MOHALI – ALL THE APPROVAL WOULD BE TAKEN FROM THE DEVELOPMENT COMMISSIONER SHORTLY.•BANGAL SHAPOORJI DEVELOPERS PVT. LIMITED, KOLKATA – ALL THE APPROVALS TAKEN EXCEPT SERVICE APPROVAL.

PROCEDURE FOR SETUP OF SEZ

• THE DEVELOPER OF SEZ HAS TO IDENTIFY THE AREA AND MAKE AN APPLICATION IN FORM “A” FOR SETTING UP OF SEZ.

• THE APPLICATION MAY BE SUBMITTED DIRECTLY TO THE BOA. HOWEVER, THE DEVELOPER HAS TO TAKE THE CONCURRENCE OF THE STATE GOVT. WITHIN SIX MONTHS.

• IF THE APPLICATION IS SUBMITTED TO THE STATE GOVT. THEN THE STATE GOVT. SHALL SEND THE PROPOSAL TO THE BOA WITH THE RECOMMENDATIONS.

• IF THE APPLICATION IS COMPLETE IN ALL RESPECT THEN THE CENTRAL GOVT. SHALL ISSUE THE LETTER OF APPORVAL TO THE DEVELOPER.

• THE LETTER OF APPROVAL SHALL BE VALID FOR A PERIOD OF THREE YEARS WITHIN WHICH TIME, EFFECTIVE STEPS SHALL BE TAKEN BY THE DEVELOPER TO IMPLEMENT THE PROJECT.

• PROVIDED THAT THE BOARD, MAY, IF IT IS SATISFIED, EXTEND THE VALIDITY PERIOD FOR A FURTHER PERIOD NOT EXCEEDING TWO YEARS UPON A REQUEST MADE IN WRITING BY THE DEVELOPER OR CO-DEVELOPER.

• THE DEVELOPER HAS TO SUBMIT AN APPLICATION TO THE CENTRAL GOVT. FOR DECLARATION OF IDENTIFIED AREA AS SEZ.

• THE DEVELOPER IS REQUIRED TO FURNISH THE FOLLOWING DETAILS TO THE CENTRAL GOVT FOR NOTIFICATION OF SEZ. :- 1) PROOF OF LEGAL POSSESSION. 2) THE DEVELOPER HAS TO SUBMIT A CERTIFICATE FROM THE STATE GOVT. THAT THE LAND IS IN POSSESSION OF THE DEVELOPER AND FREE FROM ALL ENCUMBRANCES.

3) IF CASE THE IDENTIFIED AREA IS TAKEN ON LEASE, THE LEASE PERIOD SHALL NOT BE LESS THAN TWENTY YEARS.

4) THE IDENTIFIED AREA SHALL BE VACANT AND THE SAME SHOULD HAVE NO PUBLIC THOROUGHFARE.

• THE CENTRAL GOVT. SHALL NOTIFY THE IDENTIFIED AREA AS A SEZ SUBJECT TO THE FULFILLMENT OF THE FOLLOWING:-

1) SUBMISSION OF ABOVE DETAILS. 2) ACCEPTANCE OF TERMS AND CONDITIONS MENTIONED IN THE LETTER OF APPROVAL.

3) AREA PROPOSED IS NOT LESS THAN THE MINIMUM AREA REQUIREMENT.

MINIMUM AREA REQUIREMENT FOR NOTIFICATION OF SEZ:-

1. FOR MULTI PRODUCT – 1,000 Ha (MAXIMUM 5,000 Ha) *** 100 Ha

2. FOR SECTOR SPECIFIC – 100 Ha (*** 50 Ha)

3. SEZ IN PORT OR AIRPORT - 100 Ha.

4. SEZ FOR FREE TRADE AND WAREHOUSING – 40 Ha.

5. GEMS & JEWELLERY, BIO TECHNOLOGY – 10 Ha.

6. ELECTRONIC HARDWARE AND SOFTWARE / IT – 10 Ha.

*** IN CASE OF SELECTED STATES LIKE GOA, MEGHALAYA, TRIPURA, ASSAM, SIKKIM ETC.

FOR ALL THE SEZ’s MINIMUM PROCESSING SHOULD BE 50%

GRANT OF APPROVAL FOR AUTHORISED OPERATIONS

THE DEVELOPER SHALL SUBMIT TO THE BOA, THE DETAILS OF OPERATIONS PROPOSED TO BE UNDERTAKEN AT THE SEZ.

THE EXEMPTIONS, DRAWBACKS AND CONCESSIONS SHALL BE AVAILABLE TO THE DEVELOPER FOR THE AUTHORISED OPERATIONS ONLY APPROVED BY BOA.

DEMARCATION OF PROCESSING AND NON-PROCESSING AREA

THE DEVELOPER HAS TO MAKE AN APPLICATION TO THE DEVELOPMENT COMMISSIONER DEMARCATION OF SEZ AREA AS A PROCESSING & NON -PROCESSING AREA.

THE PROCESSING AREA SHALL BE FULLY SECURED.

• ONLY AUTHORISED PERSONS SHALL ONLY BE ALLOWED TO ENTER THE PROCESSING AREA OF THE SEZ.

• THE DEVELOPER SHALL NOT SELL THE LAND IN A SPECIAL ECONOMIC ZONE.

• THE DEVELOPER SHALL ALLOT THE LAND IN SEZ ONLY TO A PERSON HOLDING A VALID LETTER OF APPROVAL ISSUED BY THE DEVELOPMENT COMMISSIONER.

• THE DEVELOPER MAY ALLOT LAND IN THE NON-PROCESSING AREA FOR BUSINESS AND SOCIAL PURPOSE. THE SPECIAL APPROVAL OF BOA IS REQUIRED TO GET THE DUTY BENEFITS.

APPROVAL OF THE SPECIFIED / EXAMINATION AREA

THE DEVELOPER HAS TO MAKE AN APPLICATION TO THE SPECIFIED OFFICER OF SEZ FOR APPROVAL OF SPECIFIED / EXAMINATION AREA.

IN CASE THE SPECIFIED AREA IS OUT OF PROCESSING AREA BUT WITHIN SEZ, SUCH AREA SHALL COMPLY WITH SUCH SAFEGUARDS AS MAY BE NECESSARY FOR THE PURPOSE AND APPROVAL BY THE SPECIFIED OFFICER.

APPROVAL OF LIST OF GOODS AND SERVICES.

THE DEVELOPER HAS TO MAKE AN APPLICATION TO THE DEVELOPMENT COMMISISONER ALONGWITH THE LIST OF GOODS AND SERVICES, INCLUDING MACHINERY, EQUIPMENTS AND CONSTRUCTION MATERIALS REQUIRED FOR THE AUTHORISED OPERATIONS, DULY CERTIFIED BY CE FOR APPROVAL BY THE DC.

ONLY AFTER THE APPROVAL, THE DEVELOPER CAN IMPORT OR PROCURE MATERIALS WITH DUTY BENEFITS.

EXECUTION OF BOND-CUM-LEGAL UNDERTAKING THE DEVELOPER HAS TO EXECUTE A BOND-

CUM-LEGAL UNDERTAKING IN FORM D, WITH REGARD TO ITS OBLIGATIONS, PROPER UTILIZATION AND ACCOUNTAL OF GOODS PROCURED DUTY FREE, INCLUDING GOODS PROCURED / IMPORTED BY A CONTRACTOR DULY AUTHORISED BY THE DEVELOPER.

THE BOND-CUM-LEGAL UNDERTAKING SHALL BE JOINTLY ACCEPTED BY THE DEVELOPMENT COMMISSIONER AND THE SPECIFIED OFFICER.

REPORTS TO BE REPORTS TO BE SUBMITTED BY THE SUBMITTED BY THE DEVELOPER TO THE DEVELOPER TO THE

DEVELOPMENT DEVELOPMENT COMMISSIONER / COMMISSIONER /

COMMERCE MINISTRY, COMMERCE MINISTRY, NEW DELHINEW DELHI

MONTHLY REPORT IN RESPECT OF MONTHLY REPORT IN RESPECT OF INVESTMENT / EMPLOYMENT GENERATION INVESTMENT / EMPLOYMENT GENERATION ETC.ETC.

QUARTERLY REPORT QUARTERLY REPORT HALF YEARLY REPORTHALF YEARLY REPORT HALF YEARLY CONSUMPTION REPORT, WHICH HALF YEARLY CONSUMPTION REPORT, WHICH

WILL BE CERTIFIED BY THE CE ENGINEER WILL BE CERTIFIED BY THE CE ENGINEER OTHER THAN THE ONE WHO HAS CERTIFIED OTHER THAN THE ONE WHO HAS CERTIFIED MATERIAL REQUIREMENT LIST.MATERIAL REQUIREMENT LIST.

QUARTERLY REPORT IN RESPECT OF QUARTERLY REPORT IN RESPECT OF APPROVALS TAKEN FROM THE STATE GOVT.APPROVALS TAKEN FROM THE STATE GOVT.

HALF YEARLY REPORT TO THE COMMERCE HALF YEARLY REPORT TO THE COMMERCE MINISTRY, NEW DELHI IN RESPECT OF MINISTRY, NEW DELHI IN RESPECT OF IMPLIMENTATION OF PROJECT. IMPLIMENTATION OF PROJECT.

CONSTITUTION OF APPROVAL COMMITTEE FOR SEZ

THE CENTRAL GOVT. SHALL CONSTITUTE AN APPROVAL COMMITTEE FOR THE SEZ, THIS WOULD CONSIST OF :-

THE DEVELOPMENT COMMISSIONER AS CHAIRPERSON TWO OFFICERS OF CENTRAL GOVT. NOMINATED BY THEM. TWO OFFICERS OF CENTRAL GOVT. DEALING WITH

REVENUE. ONE OFFICER OF CENTRAL GOVT. DEALING WITH

ECONOMIC AFFAIRS. TWO OFFICERS OF THE STATE GOVT. NOMINATED BY THEM. A REPRESENTATIVE OF DEVELOPER CONCERNED – SPECIAL

INVITEE.

FUNCTIONS OF APPROVAL FUNCTIONS OF APPROVAL COMMITTEECOMMITTEE

APPROVAL OF LIST OF MATERIALS AND SERVICES.APPROVAL OF LIST OF MATERIALS AND SERVICES.

MONITOR THE UTILIZATION OF GOODS AND MONITOR THE UTILIZATION OF GOODS AND SERVICES IN THE SEZ.SERVICES IN THE SEZ.

APPROVAL OF SETUP OF UNITS IN SEZ.APPROVAL OF SETUP OF UNITS IN SEZ.

IN CASE THE APPROVAL COMMITTEE IS UNABLE IN CASE THE APPROVAL COMMITTEE IS UNABLE TO DECIDE ON A PARTICULAR MATTER, THE SAME TO DECIDE ON A PARTICULAR MATTER, THE SAME SHALL BE REFERRED TO THE BOARD OF SHALL BE REFERRED TO THE BOARD OF APPROVAL, MINISTRY OF COMMERCE, NEW DELHI.APPROVAL, MINISTRY OF COMMERCE, NEW DELHI.

PROCEDURE FOR IMPORT OF

MATERIAL BY SEA / AIR BY THE

DEVELOPER / UNIT

PROCEDURES FOR IMPORTPROCEDURES FOR IMPORT B/E. FOR HOME CONSUMPTION, IN B/E. FOR HOME CONSUMPTION, IN

QUINTUPLICATE, TO BE FILED WITH THE QUINTUPLICATE, TO BE FILED WITH THE AUTHORISED OFFICER OF THE SEZ, WITH AN AUTHORISED OFFICER OF THE SEZ, WITH AN ENDORSEMENT AS “ SPECIAL ECONOMIC ZONE ENDORSEMENT AS “ SPECIAL ECONOMIC ZONE CARGO”CARGO”

THE SAID B/E. TO ACCOMPANY BILL OF LADING / THE SAID B/E. TO ACCOMPANY BILL OF LADING / AIRWAY BILL, INVOICE, PACKING LIST, AIRWAY BILL, INVOICE, PACKING LIST, CERTIFICATE OF ORIGIN, CATALOGUE ETC.CERTIFICATE OF ORIGIN, CATALOGUE ETC.

THE AUTHORISED OFFICER I.E. INSPTER / SUPDT. THE AUTHORISED OFFICER I.E. INSPTER / SUPDT. OF CENTRAL EXCISE & CUSTOMS SHALL OF CENTRAL EXCISE & CUSTOMS SHALL REGISTER THE B/E. REGISTER THE B/E.

• THE B/E. SHALL BE ASSESS BY THE AUTHORISED OFFICER ON THE BASIS OF THE TRANSACTION VALUE.

• THE B/E. WILL NOT REQUIRE THE COUNTER SIGNATURE OF THE SPECIFIED OFFICER I.E. ADDTT./DY.JT. COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS.

• IN CASE THE B/E. IS NOT ASSESSED BY THE AUTHORISED OFFICER ON THE DATE OF FILING ITSELF, THE CUSTOMS AUTHORITIES AT THE PORT OF IMPORT SHALL ALLOW TRANSFER OF MATERIAL TO SEZ ON THE BASIS OF THE REGISTERED B/E., IF AN ENDORSEMENT TO THIS EFFECT HAS BEEN MADE IN THE B/E. BY THE AUTHORISED OFFICER.

• THE QUINTUPLICATE COPY OF THE B/E. SHALL BE SENT TO THE PORT OF IMPORT ALONGWITH ALL OTHER DOCUMENTS WITH THE TRANSHIPMENT PERMISSION ON THE BACK OF THE QUINTUPLICATE OF B/E.

• THE MATERIAL SHALL BE ALLOWED TO BE TRANSFERRED FROM THE PORT OF IMPORT TO SEZ WITHOUT EXAMINATION BY THE CUSTOMS AUTHORITIES AT THE PORT OF IMPORT.

• IN CASE OF LCL CARGO, THE SAME SHALL BE SEALED BY THE CUSTOMS AT THE PORT OF IMPORT.

PROCEDURE AT SEZ ON ARRIVAL OF THE CARGO

• ON ARRIVAL OF MATERIAL AT SEZ GATE, THE MARKS & NUMBER ON THE PACKAGES WILL BE CHECKED BY THE AUTHORISED OFFICER.

• IF EXAMINATION OF THE CARGO IS REQUIRED, THE SAME SHALL BE DONE AT THE SEZ GATE OR IF IT IS NOT POSSIBLE, IN AN AREA NOTIFIED BY THE SPECIFIED OFFICER FOR THIS PURPOSE.

• THE 5TH COPY OF THE B/E. BEARING AN ENDORSEMENT OF THE AUTHPRISED OFFICER THAT THE GOODS HAVE BEEN RECEIVED IN THE SEZ SHALL BE SENT TO THE PORT OF IMPORT WITHIN 45 DAYS FROM THE DATE OF CLEARANCE OF MATERIAL FROM THE PORT.

• IN CASE THE 5TH COPY OF THE B/E. IS NOT SENT BACK TO PORT OF IMPORT, THE DUTY SHALL BE DEMANDED FROM THE SEZ.

•PROCEDURE FOR IMPORT OF MATERIAL BY COURIER :-

•SAME AS IMPORT OF MATERIAL BY AIR / SEA.

• PROCEDURE FOR IMPORT BY POST :-

• SAME AS IMPORT OF MATERIAL BY AIR / SEA EXCEPT THAT THE B/E. WOULD BE ENDORSED AS “POSTAL IMPORTS”.

•THE POST OFFICE REGISTRATION NUMBER AS INDICATED IN THE INTIMATION LETTER ISSUED BY THE POST OFFICE SHALL BE TAKEN BY THE AUTHORISED OFFICER AS THE IGM AND ITEM NUMBER OF B/E.

• THE COPY OF INTIMATION LETTER RECEIVED FROM THE POST OFFICE SHALL BE PASTED ON THE REVERSE SIDE OF ORIGINAL BILL OF ENTRY.

PROCEDURE FOR PROCUREMENT OF LOCAL MATERIAL

PROCEDURE FOR PROCUREMENT OF MATERIAL WITH EXCISE DUTY BENEFIT (UNDER ARE1)

THE DTA SUPPLIER SUPPLYING MATERIAL TO SEZ, SHALL CLEAR THE SAME AS IN CASE OF EXPORTS, EITHER UNDER BOND OR AS THE DUTY PAID UNDER CLAIM OF REBATE ON THE COVER OF ARE-1.

MATERIAL PROCURED BY SEZ, ON WHICH EXCISE DUTY BENEFIT HAS BEEN AVAILED, BUT WITHOUT AVAILMENT OF EXPORT ENTITLMENT, SHALL BE ALLOWED ON THE BASIS OF ARE1.

•MATERIAL PROCURED BY SEZ, UNDER THE CLAIM OF EXPORT ENTITLEMENT SHALL BE ALLOWED INTO SEZ ON THE BASIS OF ARE1 AND BILL OF EXPORT.

• THE BILL OF EXPORT HAS TO BE FILED BEFORE ARRIVAL OF MATERIAL TO SEZ BY THE SUPPLIER OR ON HIS BEHALF BY THE SEZ DEVELOPER / UNIT AS THE CASE MAY BE.

• AFTER THE ASSESSMENT OF THE BILL OF EXPORT, MATERIAL SHALL BE SUPPLY BY THE SUPPLIER.

• IN CASE THE MATERIAL IS SUPPLIED BEFORE ASSESSMENT OF BILL OF EXPORT, THE SAME SHALL BE RELEASED FOR USE ONLY AFTER ASSESSMENT OF BILL OF EXPORT.

• THE AUTHORISED OFFICER AT THE TIME OF ASSESSMENT OF BILL OF EXPORT SHALL CONFIRM THAT THE GOODS ARE REQUIRED FOR AUTHORISED OPERATIONS BY THE SEZ DEVELOPER WITH REFERENCE TO THE LETTER OF APPROVAL OR THE LIST OF MATERIAL APPROVED BY THE APPROVAL COMMITTEE FOR THE DEVELOPER.

• WHEN THE MATERIAL IS RECEIVED AT SEZ GATE, THE PROCEDURE AS APPLICABLE FOR IMPORTS WILL BE FOLLOWED EXCEPT THE 5TH COPY OF BILL OF ENTRY, ONE COPY OF ARE1 AND / OR BILL OF EXPORT, AS THE CASE MAY BE, SHALL BE SENT TO THE SUPPLIER’S EXCISE AUTHORITIES AS A PROOF OF EXPORT.

• THE ARE1 AND / OR BILL OF EXPORT SHALL BE SENT TO THE SUPPLIER’S EXCISE AUTHORITIES WITHIN 45 DAYS FROM THE DATE OF DISPATCH OF MATERIAL.

• IN CASE THE ARE1 IS NOT SENT BACK WITHIN 45 DAYS TIME THEN THE EXCISE DUTY WILL BE DEMANDED FROM THE SUPPLIER’S EXCISE AUTHORITIES.

• IF THE BILL OF EXPORT HAS BEEN FILED UNDER A CLAIM OF DRAWBACK OR DEPB, THE UNIT OR DEVELOPER CAN CLAIM THE SAME FROM THE SPECIFIED OFFICER AND DEVELOPMENT COMMISSIONER RESPECTIVELY.

• IF THE UNIT OR DEVELOPER DOES NOT INTEND TO CLAIM THE SAID BENEFITS, THE SUPPLIER CAN CLAIM THE BENFITS BASED ON A DISCLAIMER GIVEN TO THEM BY THE UNIT / DEVELOPER.

• NOW THE DEPB IS ALLOWED EVEN WHEN THE PAYMENT IS MADE FROM THE INDIAN CURRENCY ACCOUNT OF THE DEVELOPER / CO-DEVELOPER.

• BENEFIT UNDER EPCG CAN BE AVAILED BY THE SUPPLIER EVEN WHEN PAYMENT IS MADE IN INDIAN CURRENCY BY THE UNIT / DEVELOPER.

SUPPLY OF NO-BENEFIT MATERIALS TO SPECIAL ECONOMIC ZONE

MATERIALS SUPPLIED BY DEALER, TRADER, DUTY PAID, FREE SUPPLY, THE SUPPLIER IS NOT REGISTERED WITH THE CENTRAL EXCISE AUTHORITIES ETC. ARE TREATED AS A NO BENEFIT MATERIAL.

FOR SUPPLY OF NO-BENEFIT MATERIALS TO SEZ ONLY INVOICE IS REQUIRED.

THE INVOICE SHALL BE ENDORSED BY THE DEVELOPER / UNIT THAT NO-BENEFIT, EXEMPTIONS, DRAWBACKS, CONCESSIONS HAVE BEEN AVAILED ON THE SAID GOODS.

REPAIR / REPLACEMENT / RETURN OF REPAIR / REPLACEMENT / RETURN OF GOODS FOUND TO BE DEFECTIVE, GOODS FOUND TO BE DEFECTIVE, DAMAGED OR UNFIT FOR USEDAMAGED OR UNFIT FOR USE

• GOODS IMPORTED OR PROCURED LOCALLY ARE FOUND DEFECTIVE OR UNFIT FOR USE OR WHICH HAVE BEEN DAMAGED MAY BE SENT OUT OF SEZ WITHOUT PAYMENT OF DUTY FOR REPAIR / FREE REPLACEMENT TO THE SUPPLIER OR HIS AUTHORISED AGENT.

• IN CASE RETURN OF GOODS ARE NOT INSISTED UPON BY THE SUPPLIER, THE SAME CAN BE DESTROYED WITH THE PERMISSION OF SPECIFIED OFFICER OF SEZ.

• RETURN OF GOODS PROCURED FROM DTA AGAINST WHICH EXPORT BENEFITS HAVE BEEN AVAILED, WILL BE ALLOWED ONLY ON REFUND OF SUCH BENEFITS.

PROCEDURE FOR PROCUREMENT OF MATERIAL FROM EOU / WAREHOUSE

• FOR PROCUREMENT OF MATERIAL FROM EOU / WAREHOUSE, THE UNIT OR DEVELOPER SHALL FILE A B/E. WITH THE SPECIFIED OFFICER.

• THE 5TH COPY OF THE SAID B/E. DULY ASSESSED BY THE AUTHORISED OFFICER IS TO BE SENT TO THE CUSTOMS OFFICER IN CHARGE OF THE EOU / WAREHOUSE FROM WHERE THE GOODS ARE TO BE PROCURED.

• THE CUSTOMS OFFICER IN CHARGE OF THE EOU / WAREHOUSE SHALL ALLOW ON THE COVER OF EX-BOND SHIPPING BILL AND ON THE BASIS OF B/E. DULY ASSESSED BY THE AUTHORISED OFFICER

• THE COPY OF EX-BOND SHIPPING BILL DULY ENDORSED BY THE AUTHORISED OFFICER IS TO BE SUBMITTED TO THE CUSTOMS OFFICER IN-CHARGE OF EOU / WAREHOUSE WITHIN 45 DAYS, AS RE-WAREHOUSING CERTIFICATE, OR ELSE THE CUSTOMS OFFICER IN-CHARGE OF THE EOU / WAREHOUSE SHALL PROCEED TO DEMAND APPLICABLE DUTY FROM THE SUPPLIER.

PROCUREMENT OF MATERIALS FROM ANOTHER SEZ DEVELOPER

1) Bill of Entry for Home Consumption has to be filled with the Authorised officer by the receiving SEZ Developer.

2) Further procedure as in case of Imports to be followed.

PROCUREMENT OF MATERIAL FROM CO-DEVELOPERS FROM THE SAME SEZ.

The movement of material shall be allowed based on recording of such transaction in the regular books of the receiving and supplying Developer.

TAX BENEFITS TAX BENEFITS FOR FOR

SEZ DEVELOPERSSEZ DEVELOPERS

• NO EXCISE DUTY• NO CUSTOMS DUTY• NO CST (AGAINST FORM I)• NO STAMP DUTY.• NO ELECTRICTY DUTY (SPECIAL APPROVAL

FROM THE STATE ELECTRICTY BOARD IS REQUIRED)

• NO INCOME TAX FOR 10 YEARS• NO MAT• NO DIVIDEND DISTRIBUTION TAX • NO VAT HOWEVER, SO FAR MAHARASHTRA

GOVT. HAS NOT EXEMPTED VAT.

RESULTS OF BENEFITSTO THE SEZ

DEVELOPERS

▪ REDUCED COST OF INFRASTRUCTURE▪ REDUCED COST OF UTILITIES▪ REDUCED COST OF RAW MATERIAL▪ REDUCED COST OF CAPITAL EQUIPMENTS▪ REDUCED COST OF MANPOWER▪ OVERALL PROFITS INCREASED BECAUSE INCOME TAX BENEFITS.

TOTAL PROJECT COST IS LOW IN SEZ COMPARE TO DTA / EOU FOR

THE SAME PROJECTS

THANK YOU !