Clarification on the definition of 'Special Economic Zone in an existing port or airport' - SEZ - F. 1/12/2007-SEZ

File No. F. 1/12/2007-SEZ Government of India/ Bharat Sarkar Ministry of Commerce and Industry/ Vanijya Aur Udyog Mantralaya Department of Commerce/ Vanijya Vibhag SEZ Division Udyog Bhawan, New Delhi - 110107 Dated the 1st February, 2017 To, All Development Commissioners, Special Economic Zones. Subject: Clarification on the definition of 'Special Economic Zone in an existing port or airport'. Sir/ Madam, I am directed to say that some difficulties in the interpretation of Rule 2(zc) have been expressed as to whether there is any restriction on sector/product/services in an SEZ in a port or airport . 2. The matter has been examined in this Department in the light of Rule 2(za) , 2(zb) and 2(zc) of SEZs Rules 2006 . There are three types of SEZs defined under the Rules - SEZ for specific sector ( Rule 2 (zb) ), SEZ for multi-product ( Rule 2 (za) ) and SEZ in a port or airport ( Rule 2 (zc) . As per the definitions, 'SEZ for specific sector' is exclusively meant for products / services in a sector and 'SEZ for muti-product SEZ' is meant for goods and services falling in two or more sectors including trading and warehousing. However, 'SEZ in a port or airport' has been separately defined as an SEZ in an existing port or airport for manufacture of goods in two or more goods in a sector or goods falling in two or more sectors or for trading and warehousing or rendering of services. . ( Copy of Rule 2(zc) enclosed ) 3. In view of the above, it is clarified that as per definition, in an SEZ in a port or airport, manufacture of goods falling in two or more sectors, trading and warehousing and rendering of services are permitted i.e. units may be set up for manufacture of goods and rendering services including trading and warehousing under two or more sectors. Yours faithfully, (T.V. Ravi) Director 23063960 E-mail: [email protected] (zc) Special Economic Zone in a port or airport means a Special Economic Zone in an existing port or airport for manufacture of goods in two or more goods in a sector or goods falling in two or more sectors or for trading and warehousing or rendering of services; (zd) Specified Officer in relation to a Special Economic Zone means Joint or Deputy or Assistant Commissioner of customs for the time being posted in the Special Economic Zone; (ze) status holder' means an exporter recognized under the Foreign Trade Policy; (2) All other words and expressions used in these rules and not defined but defined in the Act shall have the meanings respectively assigned to them in the Act. CHAPTER- II PROCEDURE FOR ESTABLISHMENT OF SPECIAL ECONOMIC ZONE 3. Proposal for setting up of Special Economic Zone.- Every proposal under subsections (2) to (4) of section 3 shall be made in Form - A. 4. Forwarding of proposal to Board- (1) The State Government shall forward the proposals received under sub-sections (2) and (4) of section 3 .to the Board of Approval (Deputy Secretary, Ministry of Commerce and Industry, Department of Commerce, Udyog Bhavan, New Delhi - 110011) alongwith its recommendations, within forty-five days of receipt of such proposal: Provided that where the Board approves a proposal received under sub-section (3) of section 3, the person shall obtain concurrence of the State Government within six months from the date of such approval. (2) While forwarding a proposal under sub-rule (1), the State Government shall ensure that the requirements under rule 5 have been complied with and shall attach copies of relevant notifications issued by it in this regard. 5. Requirements for establishment of a Special Economic Zone. (1) The Board may approve as such or modify and approve a proposal for establishment of a Special Economic Zone, in accordance with the provisions of sub-section (8) of section 3, subject to the requirements of minimum area of land and other terms and conditions indicated in sub-rule (2). (2) The requirements of minimum area of land for a class or classes of Special Economic Zone in terms of sub-section (8) of section 3 shall be the following namely : - (a) A Special Economic Zone for multi product shall have a contiguous area of one thousand hectares or more.