Special Economic Zones (Amendment) Rules, 2017 - G.S.R. 585(E) - Special Economic Zone

MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) NOTIFICATION New Delhi, the 12th June, 2017 G.S.R. 585(E). - In exercise of the powers conferred by section 55 of the Special Economic Zones Act, 2005 (28 of 2005) the Central Government hereby makes the following rules further to amend the Special Economic Zones Rules, 2006 , namely:- 1. Short title and commencement.- (1) These rules may be called the Special Economic Zones (Amendment) Rules, 2017. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Special Economic Zones Rules, 2006 (hereinafter referred as the said rules), in Rule 41, in sub-rule (1), - (a) in clause (a), - (i) the words including studded jewellery shall be omitted; (ii) the following proviso shall be inserted, namely:- Provided that in case of a gems and jewellery unit, the finished goods requiring further processing or semi-finished goods, including precious metals, taken outside the Special Economic Zone for sub-contracting by the unit shall be brought back into the unit within twenty-eight days. ; (b) for clause (f), the following clause shall be substituted, namely:- (f) in any financial year, the consolidated value of the sub-contracted part of production of a unit and of the sub-contracted production process of a unit shall not exceed the total value of goods cleared by the unit either for exports or for sale in Domestic Tariff Area in the immediately preceding financial year: Provided that a unit, sub-contracting part of the production or production process to other unit in the same Special Economic Zone shall not require the permission of the Specified Officer provided that both the supplying and receiving units shall maintain proper account of the goods involved in the sub-contracting: Provided further that in case of gems and jewellery unit, in any financial year, the consolidated value of the sub-contracted part of production of a unit and of any sub-contracted production process of a unit, shall not exceed one- half the value of goods cleared by the unit in the immediately preceding financial year. Explanation 1 . - For removal of doubts it is clarified that the expression sub-contracting of a part of its production under this rule shall mean sub-contracting all the production processes for conversion of raw material into finished products. Explanation 2 . - In case of first year of production, the value of the goods sub-contracted shall not exceed, - (a) in case of all other goods, the value of such goods; (b) in case of gems and jewellery, one-half of the value of such goods, produced by the unit in its own premises during that year. . 3. In the said rules, in rule 42, in sub-rule(1), in clause (ii), in sub-clause (h) , the following proviso shall be inserted, namely:- Provided that in case of a gems and jewellery unit, the finished goods requiring further processing or semi-finished goods, including precious metals, taken outside the Special Economic Zone for subcontracting by the unit shall be brought back into the unit within twenty-eight days. . 4. In the principal rules, in rule 50, in sub-rule (1), in clause (c), the words job work shall be omitted. [F. No. D.12/4/2013-SEZ(Pt.)] ALOK VARDHAN CHATURVEDI, Addl. Secy. Note : The principal rules were published in the Gazette of India, Extraordinary Part-II, Section 3, Sub-section (i), vide number G.S.R. 54 (E), dated the 10th February, 2006 and last amended vide G.S.R. 12 (E), dated the 3rd January, 2017.