Amendment in Para 8.75 and Appendix 28 A of H.B. Vol. I - DGFT - 47 (RE-00)/1997-2002

Amendment in Para 8.75 and Appendix 28 A of H.B. Vol. I PUBLIC NOTICE No. 47(RE-00)/1997-2002 Dated 13th December, 2000 In exercise of powers conferred under Paragraph 4.11 of the Export and Import Policy 1997-2002, as notified in the Gazette of India extraordinary, Part-II-Section 3 - Sub-section (ii) vide S.O.No.283(E) dated 31.3.97, the Director General of Foreign Trade hereby makes the following amendment in Handbook (Vol.1). (RE-00), 1997-2002. 1. Paragraph 8.75 shall be amended to read as under:- "EOUs/EPZ Units/Nominated Agencies authorised by Ministry of Commerce Industry shall be permitted to set up showrooms/retail outlets at the international Airports for sale of plain and studded jewellery to foreign tourists in accordance with the procedure laid down by the Customs authorities and shall be subject to the following conditions :- i. All jewellery items left unsold after a period of 60 days be exported abroad or returned back to the respective EOUs/EPZ/DTA units/Nominated Agencies authorised by Ministry of Commerce and Industry. ii. The minimum value addition as prescribed in the Policy shall be achieved ." 2. The following shall be added as paragraph 8.75 (a) :- "The Nominated Agencies shall provide the following documents to the EOUs and EPZ/DTA Units as proof of sale/export of jewellery items supplied by them to the nominated agencies for sale/export at their Duty Free Shops: i. Statement of sold, unsold items duly countersigned by the Customs Authorities. ii. Certificate from the Nominated Agency indicating the value of sold and unsold items of a particular parcel. iii. Foreign Inward Remittance Certificate (FIRC) indicating the value of jewellery items sold at the Duty Free Shop. For the purpose of claiming Replenishment, the DTA unit shall submit the documents mentioned at Sl. No. (I) to (iii) above along with the following additional documents to the Nominated Agency. i. Original Customs attested invoice/shipping bill ii. Certificate from the Nominated Agency in the form given in Appendix-15 D". 3. The Appendix 16 D shall be amended as per Annexure I to this Public Notice. 4. The Appendix 16 K shall be added as per Annexure II to this Public Notice. 5. The heading "Export Processing Zone" as appearing in the Appendix 27 containing the list of Licensing Authorities and their jurisdiction shall be substituted by the heading "Export Processing Zone/Special Economic Zone" and the corresponding entries from Sl. No. 33 to 39 thereunder shall be amended as per Annexure III to this Public Notice. 6. The following amendments shall be made in Appendix 28A A. Product Group - Engineering (Product Code 61) i. The description of the export product at S.No. 256 shall be amended to read as "Pneumatic Tool" B. Product Group - Chemicals (Product Code 62) i. The following shall be added after S.No. 998 S.No Description DEPB rates Value cap 999 Pigment Red 170 8% 1000 Pigment Red 5781 6% 1001 2,4 D Amine salt 8% 1002 Turbufos Technical 85% 6% ii. The description of the export product at Sl. No. 491 shall be amended to read as "Single/Multi Colour Printed Books, with/without soft/hard, PVC/BOPP Laminated Jacket cover". iii. The description of the export product at Sl. No. 494 shall be amended to read as "Ruled/Unruled/Printed with soft/hard cover with or without PVC/BOPP Jacket/Laminated stationery items like Exercise Book/Diary/Notebook/Register/Writing Pad/Drawing Book." iv. The description of the export product at Sl. No. 590 shall be amended to read as "Polychloroprene Based Adhesives". v. The description of the export product at Sl. No. 747 shall be amended to read as under:- "High voltage porcelain insulators for transmission line applications of the following type: a) Ball and Socket Disc Insulator b) Antifog Disc Insulator, c) Pin type Insulator d) Tongue Clevis type Disc Insulator." C. Product Group - Plastics (Product Code 63) i. The following shall be added after S.No. 145: S.No Description DEPB rates Value cap 146 Sulphonated Polyethylene Terepthalate Powder (Polyester Based Resin) 9% ii. The description of the export product at Sl. No. 102 shall be amended to read as under:- "Synthetic Footwear made of NBR or PVC or SBR, including in CKD/SKD". D. Product Group - Leather and Leather Products (Product Code 64) i. The following shall be added after S.No. 31: S.No Description DEPB rates Value cap 32 Leather -cum-Synthetic Golf gloves 11% 33 Synthetic Golf gloves 11% E. Product Group - Electronics (Product Code 83) i. The description of the export product at S.No.41 shall be amended to read as "Telephone Instrument (Push Button Telephones) including CKD/SKD thereof" ii. The following shall be added after S.No 93 94. Floppy Diskettes loaded with software (including information/ data) 2% Rs. 450/per piece F. Product Group - Miscellaneous items (Product Code 90) i. The description of the export product at S.No.17 shall be amended to read as "Boxes/cartons made out of Paper Board/Corrugated Card Board/Laminated Board/Kraft Paper- Printed or Unprinted, Laminated or Unlaminated, Coated or Uncoated, Varnished or Unvarnished." 7. The address of M/s. International Certifications Services (Asia) Pvt. Ltd. as appearing at Sl. No. 25 of Appendix 32 under the heading "List of IS/ISO 9000 (series) Certification Agencies" shall be amended to read as under:- Shop No.2, 1st Floor, "B" Block Market, Surajmal Vihar, Delhi - 110 092, Tel.91-11-2146659, 2148961, Telefax: 91-11-2148961, E-mail : [email protected] 8. The following amendments shall be made in the Appendix 34:- i The words and expression "Or through running deposit account with concerned RLA" shall be inserted after the words "any bank" in the fourth line of Paragraph 1. Ii The following shall be added at the end of Paragraph 3:- OR (3) Through running deposit account maintained with concerned RLA in the following manner:- The applicants may deposit the anticipated amount as per their needs for six months with the concerned Regional Licensing Authority through cheque/DD in the name of concerned Pay Accounts Officer (Commerce). Initially, this amount will be credited into public accounts under Major Head 8443-Civil Deposits, 114-Export Trade Deposits adjustable against Licence Application Fees. The licensing authority at the time of admitting the application fee will carry out an adjustment in "Broad Sheet of Export Trade Deposits" and debit the value of application fee from the Head "Export Trade Deposits" by contra credit to Revenue Head Head-1453-Foreign Trade Export Promotion, 103,-Export Licensing Application Fees". The licensing Authority may furnish the details of all such transactions (like the amount transferred from Public Accounts to Revenue Account etc.) to the Pay and Accounts Officer concerned who may carry out adjustment entry in the monthly compilation of accounts. A copy of the transactions may also be forwarded to the concerned firm for the purpose of reconciliation. Note: The firms who want to resort to this mode of payment should be established and regular applicants having at least 25 applications/ transactions during the last licensing year. The minimum deposit under the scheme will not be less than Rs. 1,00,000/-. All subsequent payment in replenishment of the deposit will be made through Pay order in favour of the concerned office of CPAO. No license application will be entertained/ considered so long as the firms have a deposit balance in their account. All the charges in connection with the depositor transaction with DGFT including undercharges detected subsequently in course of audit will be debited from the Depositor amounts. Likewise, any excess payment or wrong payment of fee will be refunded as per the procedure mentioned in this appendix. 9. The following shall be added at Sl. No. 145 under the head 'Chandigarh' in the Appendix 35 containing the list of branches of Central Bank of India authorised to receive payments for application fee:- 145. S.C.O.293, Sector 35-D 10. The following shall be added in the Appendix 51B after Sl, No. 6 under the state head Delhi:- 7. Delhi Chamber of Commerce, 49, Rani Jhansi Road, New Delhi - 110 055. Tel. 3616421-24/3515828 E-mail: [email protected] 11. The Appendix 16 I shall be added as per Annexure IV to this Public Notice. Corrigendum The description of the export product corresponding to the DEPB entry at Sl. No. 987 as added vide Public Notice No. 11, dated 1st June, 2000 shall be corrected to read as, "Tetra N-Butyl titanate Monomer (minimum purity 99%)," The words and expressions "Paragraph 17.25" and "Sl. 8 above" as appearing at Sl. No. 10 of item No.4 of Appendix 16 H, notified as Annexure II to Public Notice No. 37, dated 19th October, 2000 shall be amended to read as "Paragraph 9.40" and "S. No. 9 above" respectively. This issues in public interest. Sd/- (N. L. Lakhanpal) Director General of Foreign Trade Issued by : Ministry of Commerce Industry New Delhi ANNEXURE I Appendix - 16D OFFICE OF DEVELOPMENT COMMISSIONER EXPORT PROCESSING ZONE MINISTRY OF COMMERCE, GOVERNMENT OF INDIA Dated the ___________________ To, M/S ____________________________ ____________________________ Sub: Your export oriented unit application for permission under the 100% Export Oriented Scheme for the manufacture of ______________________________ No. _________________________ EPZ _____________________ dated __________________________ Dear Sir/Madam/Gentlemen, With reference to the above mentioned application, Govt./Development Commissioner is pleased to extend to you all the facilities and privileges admissible and subject to the provisions of the Export Oriented Unit Scheme as envisaged in Export Import Policy / Handbook of Procedure (Vol.1) 1997-2002 for the establishment of a new undertaking at in the State of ____________________ for the manufacture of the following items(s) upto the capacities specified below on the basis of maximum utilisation of plant and machinery:- Item (s) of manufacture Unit Annual capacity The above permission is subject to the conditions stipulated in Annexure in addition to the following conditions:- The unit shall export its entire production, excluding rejects and sales in the domestic tariff area as per provisions of Export and Import Policy for of period of 5 years from the date of commencement of commercial production. For this purpose the unit shall furnish the requisite legal undertaking as prescribed in the Handbook of Procedure (Vol.1) to the Development Commissioner concerned. The unit would have the option to renew its EOU status or debond for production for domestic market in the light of industrial policy in force at that time in relation to manufacture of the items reserved for small scale and sectoral policy prevailing at that point of time. It is noted that Net Foreign Earning as a percentage of export (NFEP) calculated as per formula given under the EOU Scheme, has been projected as --------% during the period of five years from the date of commencement of production. However, the unit would be required to achieve the minimum stipulated level of NFEP as prescribed in Appendix- 1 of the Export-Import Policy, failing which the unit may be liable for penal action. It is noted that you require imported Capital Goods valued at Rs. -------- for the proposed project. It is noted that you have projected export turnover of US $ --------- in five years. However, the unit would achieve a minimum export performance as prescribed in Appendix-1 of Export Import Policy failing which the unit may be liable for penal action. (3) This Letter of Permission is valid for 3 years from its date of issue with in which you should implement the project and commence commercial production and would automatically lapse if an application for the extension of validity is not made before the end of the said period. As soon as, commercial production starts an intimation to this effect should be sent to the Development Commissioner of concerned EPZ and Administrative Ministry/Departments concerned under intimation to Ministry of Commerce (EP Section). (4) You are requested to confirm acceptance of the above terms and condition to the undersigned within 45 days and the Administrative Ministry/Department viz ____________________________ . (5) All future correspondence for amendments/changes in terms and conditions of the approval letter or for extension of its validity, if required, etc. may be addressed to the undersigned or Ministry of Commerce where powers have not been delegated to the Development Commissioner. Yours faithfully, Development Commissioner --------------------- EPZ Copy forwarded to :- 1. M/o / D/o ________________ (AM) 2. M/o Commerce (EOU Section) 3. M/o Commerce (Computer Data Cell) 4. D/o Scientific Industrial Research, New Delhi 5. Development Commissioner (SSI) 6. Director (Custom), North Block 7. Director of Industries, Govt. of (State) 8. Jt. Controller, E.C. Deptt., RBI, Central Office, Bombay 9. Jt./Dy./Asstt. Controller, E.C. Deptt., RBI 10. Under Secretary, EOU Section, SIA, DIP P, New Delhi 11. Data unit: Investment proposed as per application A. Land : B. Building : C. Machinery : i. Indigenous : ii. Imported : D. Staff proposed : 12. Stock file (If the case was considered by the Board of Approvals for 100% Export Oriented Undertakings at its ------------Meeting held on ------------ item No. -----------) Development Commissioner ---------------- EPZ Annexure II Appendix-16-K No. Government of India Export Processing Zone No.____________________ Dated the _________________ To M/s. ___________________ __________________ __________________ SUB: Grant of permission for setting up a unit at _______________________ SEZ Sir, I am directed to refer to your application dated ________________ on the above subject and to convey the approval in terms of the provisions contained in Export and Import Policy and Handbook of Procedure Vol-I (1997-2002) for setting up a unit at _____________ SEZ for carrying out theundermentioned activities. Activity Unit Annual capacity/ turn over 2. The approval is based on the details furnished by you in your project application and is subject to the following conditions:- The unit shall export its production/ goods/services as per provisions of export and import policy for a period of five years. The unit would have option to renew its SEZ status or debond thereafter. The unit would be required to achieve positive net Foreign Exchange Earning as Percentage of exports (NFEP) as prescribed in the Export and Import Policy and Handbook of Procedures, failing which it would be liable for penal action. Import/local purchase will be permitted of all items except those listed in prohibited list for import/export. Possession of allotted plot/SDF will be taken within a period of 3 months of issue of approval letter and construction of the factory building/implementation of project shall be started within next six months. 3. You shall be required to enter into a Legal Agreement in the prescribed form (Appendix- 16-L of HBP (Vol.1) with the undersigned for fulfilling the terms and conditions mentioned in this LOA. 4. You are requested to confirm the acceptance of the above conditions within 45 days of the issue of this letter failing which it will be presumed that you are not interested in the implementation of the project. 5. This letter of approval is valid for three years from the date of its issue for commencement of approved activity and will automatically lapse, if an application for the extension of the validity period of this letter of approval is not made before the end of the said period. 6. As soon as, commercial production/ transaction of business starts, an intimation to this effect should be sent to the undersigned. 7. All future correspondence for amendments/changes in terms and conditions of the approval letter or for extension of its validity, if required etc. may be addressed to the undersigned. Yours faithfully, (Development Commissioner) ____________________ SEZ Copy to:- Assistant Commissioner of Zone Custom along with a copy the application and project report. Department of Commerce, EPZ Section along with a copy the application and project report. Joint Controller, Exchange Control Department, RBI, Central Office, Bombay (In case of projects involving foreign/NRI investments) Director (Customs), CBEC, North Block, New Delhi Annexure III Export Processing Zone/Special Economic Zone 33. Development Commissioner/ Jt Development Commissioner/Deputy Development Commissioner/ Asstt. Development Commissioner Andheri (East) Mumbai - 400096 SEEPROZONE MUMBAI Fax-022-8291385 E-mail: [email protected] Units situated in Santa Cruz SEZ and approved EOUs located in Maharashtra, Goa, Daman and Diu, Dadra and Nagar Haveli 34. Development Commissioner/ Jt Development Commissioner/ Deputy Development Commissioner/ Asstt. Development Commissioner Gandhidham-Kachchh KAFTZ GANDHIDHAM Fax No:02836-52250 E-mail:[email protected] Units situated in Kandla and Surat SEZs and approved EOUs located in Gujarat 35. Development Commissioner/ Jt Development Commissioner/ Deputy Development Commissioner/ Asstt. Development Commissioner National Highway 45, Tambaram, Chennai - 600045 MEPZ CHENNAI Fax No:044-2368218 E-mail:[email protected], [email protected] Units situated in Madras Export Processing Zone and approved EOUs located in Tamil Nadu, Andaman Nicobar Islands, Union Territory of Pondicherry, excluding Mahe and Yanam. 36. Development Commissioner/ Jt Development Commissioner/ Deputy Development Commissioner/ Asstt. Development Commissioner Kakkanad, Cochin- 682030 CEPZONE ERNAKULAM Fax:0484-422530 E-mail: [email protected] Units situated in Cochin SEZ and approved EOUs located in Kerala, Karnataka, Lakshadweep and Mahe. 37. Development Commissioner/ Jt Development Commissioner/ Deputy Development Commissioner/ Asstt. Development Commissioner Duvvada, Visakhapatnam - 530046 VEPZ VISAKHAPATNAM Fax: 0891-587352 E-mail:[email protected] Units situated in Visakhapatnam Export Processing Zone and approved EOUs located in Andhra Pradesh and Yanam. 38. Development Commissioner/ Jt Development Commissioner/ Deputy Development Commissioner/ Asstt. Development Commissioner Noida Dadri Road, Phase-II, Noida - 201305 LIVWELL NEW DELHI Fax:91-4562314, 91-4567276 E-Mail: [email protected] Units situated in Noida Export Processing Zone and approved EOUs located in Delhi, Uttar Pradesh, Punjab, Haryana, Himachal Pradesh, Jammu Kashmir, Rajasthan, Madhya Pradesh and Chandigarh. 39. Development Commissioner/ Jt Development Commissioner/ Deputy Development Commissioner/ Asstt. Development Commissioner 2nd M.S.O. Building, 4th Floor, Nizam Place, Calcutta - 700 020 FEPZ CALCUTTA Fax:033-2477923 E-mail:[email protected] [email protected] Units situated in Falta Export Processing Zone and EOUs situated in West Bengal, Orissa, Bihar, Assam, Arunachal Pradesh, Tripura, Manipur, Meghalaya, Nagaland, Mizoram and Sikkim. Annexure IV APPENDIX-16-I GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE GUIDELINES FOR SETTING UP SPECIAL ECONOMIC ZONES IN THE PUBLIC/PRIVATE/JOINT SECTOR OR BY THE STATE GOVERNMENT With a view to augmenting infrastructural facilities for export production it has been decided to permit the setting up of Special Economic Zone (SEZ) in the public, private, joint sector or by State Governments. The following guidelines will apply to such proposals: SEZ can be developed and managed in the private sector or jointly by State Government and a private agency or exclusively by the State Government or their agencies. In the case of privately developed zones, the investors could be either Indian individuals, NRIs, Indian or foreign companies. Proposals for setting up SEZ in the public/private/joint/State sector are required to meet the following conditions: Minimum size of the SEZ shall not be less than 1000 hectares. This would however, not apply to existing EPZs converting into SEZs or to product specific SEZs. The SEZ and units therein will abide by local laws, rules, regulations or bye-laws in regard to area planning, sewerage disposal, pollution control and the like. They shall also comply with industrial and labour laws and such other laws/rules and regulations as may be locally applicable. Such SEZ shall make security arrangements to fulfill all the requirements of the laws, rules and procedures applicable to such SEZ. Only units approved under the SEZ Scheme would be permitted to be located in these SEZ. Procedure for approval: a. Proposal for establishing public/private/joint/State Sector SEZ will be considered by an Inter-ministerial Committee set up in the Department of Commerce for this purpose b. Applications (10 copies) indicating the name and address of the applicant, status of the promoter (whether individual/private company/State Government/NRIs etc.) along with a project report covering the following particulars may be submitted to the Chief Secretary of the State: Location of the proposed zone with details of existing infrastructure and that proposed to be established, Its area distance from the nearest Sea Port/Airport/Rail/Road head etc. Financial details including investment proposed, mode of financing the project and viability of the projects. Details of foreign equity and repatriation of dividends etc., if any. Whether the zone will allow only certain specific industries or will be a multi-product zone. c. The State Government shall, forward it alongwith their commitment to the following, to the Department of Commerce, Government of India: The area incorporated in the proposed Special Economic Zone is free from environmental restrictions; Water, Electricity and other services would be provided as required; Full exemption in electricity duty and tax on sale of electricity for self generated and purchased power; To allow generation, transmission and distribution of power within SEZ; Exemption from State Sales tax, octroi, mandi tax, turnover tax and taxes, duty, cess, levies on supply of goods from Domestic Tariff Area to SEZ units; For units inside the Zone, the powers under the Industrial Disputes Act and other related Acts would be delegated to the Development Commissioner or to an officer of the State Government posted exclusively for the Zone and the Zone will be declared as a public utility service under Industrial Disputes Act. Single point clearances system and minimum inspections requirement under State Laws/Rules. Thereafter, the proposal incorporating the commitments of the State Government will be placed before the Inter-Ministerial Committee on public/private/joint/State sector SEZ for consideration. d. On acceptance of the proposal, a Letter of Permission will be issued to the applicant. The approval will be subject to cancellation in the event of any abuse or violation of the conditions of approval. e. RBI guidelines on real estate ownership/development by NRI and Foreign/Indian companies, will also apply to the establishment of these SEZ.