Special
Economic Zones Rules, 2006
Chapter 4
Terms and conditions subject to which entrepreneur and developer shall be entitled to exemptions, drawbacks and
concessions
22. Terms and conditions for availing exemptions, drawbacks and concessions to every Developer and entrepreneur for authorized operations.-
(1)
Grant
of
2[permission to operate including
availing] exemption, drawbacks
and
concession
to
the
entrepreneur
or
Developer
shall be subject to
the following
conditions,
namely:-
(i)
the Unit
shall
execute
a Bond-cum-Legal
Undertaking
in
Form
H,
with regard
to
its
obligations
regarding
proper utilization
and
accountal of goods,
including
capital goods,
spares,
raw materials,
components
and consumables
including
fuels,
imported
or
procured
duty free
and regarding achievement
of
positive net
foreign
exchange
earning;
(ii)
the Developer
and
Co-Developer
shall
execute
the
Bond-cum-Legal
Undertaking
in Form
D with
regard to
their obligations
regarding proper
utilization
and
accountal
of goods,
including
goods
procured
or
imported
by
a contractor
3[including the sub-contractor]
duly authorized
by
the
Developer
or
Co-Developer
as
the case
may
be;
(iii)
the
Bond-cum-Legal
Undertaking
shall
be
jointly
accepted by Development
Commissioner
and
by the Specified
Officer:
Provided
that the
Bond-cum-Legal
Undertaking
executed
by the
Unit or
the Developer
including
Co-Developer
shall
cover
one
or
more
of
the
following
activities, namely:
-
(a)
the
movement
of
goods between
port of import
or export and
the Special Economic
Zone;
(b)
the
authorized
operations,
as
applicable
to
Unit
or
Developer;
(c)
temporary
removal
of
goods
or
goods
manufactured
in
Unit
for
the
purposes
of
repairs
or
testing
or
calibration
or display
or processing
or
sub-contracting
of
production
process
or
production
or other
temporary
removals
into Domestic
Tariff
Area
without
payment
of
duty;
(d)
re-import
of exported
goods.
(iv)
The
procedure
for execution
of
Bond-cum-Legal
Undertaking
shall
be
as under:-
(a)
the
Bond-cum-Legal
Undertaking,
where
the
entrepreneur
or Developer
is
a company shall
be executed
by the
Managing
Director
of the company
or
the
Director(s)
or any
person
who
has or have been
duly
authorized
for
this
purpose
by a
resolution of
the Board of Directors
of
the
company
and
shall
be
affixed
with
the
common
seal of the
company;
where
the
entrepreneur
is
a partnership
firm,
Bond- cum-Legal
Undertaking
shall be
executed
by
all
the partners
or
authorized
partner(s);
where the
entrepreneur
is
a
Hindu
Undivided
Family,
the,
Bond-cum-Legal
Undertaking shall be executed
by
the
Kartha;
and where
the
entrepreneur
is
a proprietorship
concern,
the Bond-cum-Legal
Undertaking
shall
be executed by
the proprietor;
(b)
the
value
of
the
Bond-cum-Legal
Undertaking
shall
be equal
to the amount of
effective
duties leviable
on import
or
procurement
4[of goods and services]
from the Domestic
Tariff
Area
of
the
projected
requirement
of
capital
goods,
raw
materials,
spares,
consumables,
intermediates,
components,
parts,
packing
materials
5[and services]
for
three
months
as
applicable
but which
will
not
be levied
on
account
of admission
of
such
goods into
the Unit
or the
amount
of
effective
duties leviable
on
import
or
procurement
4[of goods and services]
from Domestic
Tariff
Area
of
the
projected
requirements
of
goods
for
the
authorized
operation
by
the
developer
but
will
not
be levied
on account
of
admission
of such goods
into the Special
Economic
Zone;
(c)
where the
value
of Bond-cum-Legal
Undertaking
executed
falls
short
on
account
of
requirement of
additional
goods
6[and services],
the
Unit
or
the Developer
shall
submit
additional Bond-cum-Legal
Undertaking;
(d)
there
shall
be
no
debit
and
credit,
the
Bond-cum-Legal
Undertaking amount
shall
be monitored
quarterly or
yearly
on the basis
of Quarterly
Progress
Report
or Annual
Progress Report
submitted
by
the
Developer
or
Unit,
as
the
case
may be,
and
in
case
of
any
shortfall in
the
Bond-cum-Legal
Undertaking amount,
a fresh or
additional
Bond-cum-Legal
Undertaking
shall
be furnished;
(e)
the
original
of Bond-cum-Legal
Undertaking
shall be
maintained by the
office
of
Development
Commissioner
and
certified
copies
shall
be given to
the Specified
Officer
and Unit or
Developer;
(f) the value of the Bond-cum-Legal Undertaking in respect of gems and jewellery units shall be calculated on rates as notified by the Central Government, from time to time;
(g)
duly
completed
Bond-cum-legal
undertaking
executed
by
the
Unit or
Developer,
in
accordance
with
the
rules
above,
as
the
case
may
be, shall
be deemed
to
have
been
accepted,
if
no
communication
is received
within
seven
working
days
from
the
date of its
submission.
1[(v) The Unit or the developer including co-developer shall obtain a Registration-cum-Membership Certificate for availing exemptions, drawbacks and concessions.]
(2)
Every
Unit
and
Developer
shall maintain
proper
accounts,
financial
yearwise,
7[either in register form in hard copy or
time stamped digital form]
old[and
such
accounts]
which
should
clearly
indicate
in
value
terms
the
goods
imported
or
procured
from Domestic
Tariff Area, consumption
or utilization
of goods,
production
of
goods,
including
by-products,
waste
or
scrap
or
remnants,
disposal
of goods manufactured
or produced,
by
way
of exports,
sales
or supplies
in
the
domestic
tariff
area or
transfer
to Special
Economic
Zone or Export Oriented Unit
or Electronic Hardware
Technology
Park
or Software
Technology
Park Units
or
Bio- technology
Park
Unit,
as
the case
may
be,
and balance
in
stock:
Provided
that
Unit and
Developer
shall
maintain
such records
for a period of seven
years
from
the
end
of
relevant
financial
year:
Provided
further
that
the
Unit
engaged
in
both
trading
and
manufacturing
activities
shall
maintain
separate
records
for
trading
and
manufacturing
activities.
(3)
The
Unit
shall
submit
Annual
Performance
Reports
in
the
Form
I,
to
the
Development
Commissioner
and
the Development
Commissioner
shall
place the same
before the Approval
Committee
for
consideration.
(4)
The
Developer shall submit
Quarterly Report on
import
and procurement
of goods
from
the
Domestic
Tariff
Area, utilization
of
the
same
and
the
stock
in
hand, in
Form E
to
the Development
Commissioner
and the
Specified Officer
and the Development Commissioner
shall place the same
before the
Approval Committee.
1. Inserted vide :
Notification dated 05/08/2016
2. Inserted vide :
Notification dated
19/09/2018
3. Inserted vide:
Notification dated
19/09/2018
4. Inserted vide:
Notification dated
19/09/2018
5. Inserted vide:
Notification dated
19/09/2018
6. Inserted vide:
Notification dated
19/09/2018
7. Subsituted vide :
Notification dated 19/09/2018