Other administrative guidelines - CBEC's Customs Manual 2023 - Customs

18. Other administrative guidelines: 18.1 The Customs/Central Excise/Central GST Officers nominated to the Approval Committee of SEZs should ensure that the decisions taken at the Committee are within the provisions of law and should be made keeping in mind the revenue implications of such decisions. 18.2 The Customs/Central Excise/Central GST Officers are advised to conduct verification of credentials of the entrepreneurs proposing to set-up SEZ units and provide inputs on past history to the Committee for taking appropriate decision. (i) While granting assent to the approval, the representatives of DOR should ensure whether the particular process to be carried out by the unit constitutes manufacture or not in terms of Section 2 (r) of the SEZ Act. (ii) The Committee approves the import or procurement of goods from the DTA in the SEZ for carrying on the authorized operations by a developer. It should be ensured that the authorized operations are covered under the provisions of SEZ Act and Rules. Activities like Housing, etc, should only be allowed in phases of 20 of approval at a time and Commensurate with the needs of SEZs. In case of activities like setting up of hospitals, hotels and other such social infrastructure, no duty free material is permitted for Operation and maintenance of such facilities. (iii) Any activity outside the SEZ cannot be allowed as Authorized Operation. (iv) No tax benefits would be available for measures taken to establish contiguity. (v) Field formations (Range/Divisions) should follow the specified procedure laid down for movement of goods from SEZ to DT A and from DT A to SEZ. (vi) No unit should be allowed to start functioning till the walls and specified entry/exit points and the offices of the Development Commissioner (including the Customs officers posted under him) are in place. Only one entry/exit gate should be permitted in view of security and revenue loss concerns.