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Manual On SEZ , FT & WZ , IFTSC - Rajkumar
S. Adukia
GLOSSARY OF SELECTED TERMS
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Actual User
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An
user who may be either
a)
Industrial user- A person who utilizes the imported
goods for manufacturing in his own industrial unit
or in another unit( including a jobbing unit)
b)
Non-
Industrial User- A person who utilizes the imported goods for his own
use including
(i)
in a
commercial establishment for carrying on his business
(ii)
in any
Laboratory, University or hospital
(iii)
Any
service Industry |
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Accessory
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A part, sub-assembly
or assembly which has an effect on the effectiveness of any piece of
equipment without changing its effect. |
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Advance License
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A License issued under
Duty Exemption and Remission Scheme of the Foreign Trade Policy.
Advance Licence is granted for import of inputs without payment of
customs duties. It is issued in accordance with the Policy and
procedures in force and subject to fulfilment of time-bound export
obligation. Such licences can be issued for import of inputs for use in the export production as well as for
replenishment of the inputs already used in the export product.
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AEZ |
Refers to
a scheme of Agricultural Export Zones. So far, 48 AEZs have been
approved in 19 States by the Department of Commerce.
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Appointed Day
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The day on which the
SEZ is notified by the Central Government under the SEZ Act,2005
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Applicant
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The person on whose
behalf the application is made Wherever the context so requires, it
shall include the person signing the application. |
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Approval Committee
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A
committee constituted by the Central Government within 6 months from the
commencement of the SEZ Act,2005 or 6 months from the date of
establishment of SEZ as the case may be. |
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Authorised operations
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Operations authorized
by the BOA to the Developer after the appointed day and includes
operations authorized by Development Commissioner. |
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Authority
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Means A SEZ Authority
constituted by the Central Government by notification in the Official
Gazette for every SEZ. |
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Authorised Officer
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An Inspector
/preventive officer/appraiser or Superintendent of Customs posted in the
SEZ and authorized by the
Specified Officer to discharge any of his functions under SEZ Rules,2006
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BTP
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Biotechnology
Park
as notified by
Director General of Foreign Trade on the recommendation of the
Department of Biotechnology. |
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BOA |
The Board of Approval
as notified by the Department of Commerce. |
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Capital goods
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Includes any plant,
machinery, equipment or accessories required for manufacture or
production, either directly or indirectly, of goods or for rendering
services, including those required for replacement, modernization,
technological up gradation or expansion.
Capital goods also
include packaging machinery and equipment, refractory for initial
lining, refrigeration equipment, power generating sets, machine tools,
catalysts for initial charge, equipment and instruments for testing,
research and development, quality and pollution control. |
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Co- Developer
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Refers to (a) person
or (b) a state Government which has been granted by the Central
Government a letter of approval under Section 12(3) of the SEZ Act,2005
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Competent authority
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An authority competent
to exercise any power or to discharge any duty or function under the
statutory provisions. |
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Component
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Includes the parts of
a sub-assembly or assembly of which a manufactured product is made up
and into which it may be resolved.
Also includes an
accessory or attachment to the component. |
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Consumables
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Includes any item
which is required for a manufacturing process, but does not necessarily
form part of the end-product.
Items, which are
substantially or totally consumed during a manufacturing process, will
be deemed to be consumables. |
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Consumer Goods
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Any consumption goods,
which can directly satisfy human needs without further processing
Includes consumer
durables and accessories thereof. |
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Counter Trade
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Any arrangement under
which exports/imports from/to
India
are balanced either by direct imports/exports from the
importing/exporting country or through a third country under a Trade
Agreement or otherwise.
Exports/Imports under
Counter Trade may be carried out through
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Escrow Account,
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Buy Back
arrangements,
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Barter trade or
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Any similar
arrangement.
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Custodian
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The balancing of
exports and imports could wholly or partly be in cash, goods and/or
services.
Any person referred to
in Sec 45 of the Customs Act,1962 |
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Deemed Exports
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Refers to
those transactions in which the goods supplied do not leave the country
and the payment for the goods is received by the supplier in
India
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Developer
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A person or body of
persons, company, firm and such other private or government undertaking,
who develops, builds, designs , organizes, promotes, finances, operates,
maintain or manages a part or whole of the infrastructure and other
facilities in the Special Economic Zones as approved by the central
Government.
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Development
Commissioner
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The Development
Commissioner of the Special Economic Zone. |
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DEPB
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Refers to
the Duty Entitlement Pass Book to neutralise the incidence of basic
customs duty on the import content of export product. This is provided
by way of grant of duty credit against the export product at specified
rates. The DEPB Scheme which was notified on
1/4/1997
consisted of (a) Post-export DEPB and (b) Pre-export DEPB. The
pre-export DEPB scheme was abolished w.e.f.
1/4/2000 .
Under the post-export DEPB, which is issued after exports, the exporter
is given a duty entitlement Pass Book at a pre-determined credit on the
FOB value. The DEPB allows import of
any items except the items which are otherwise restricted for imports.
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DFRC
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Duty Free
Replenishment Certificate.
Scheme
which was introduced from
1/4/2000
replacing Transferable Advance Licensing Scheme. The scheme is
available to merchant exporters as well as to manufacturer exporters.
However, it covers only items which are covered under standard
input-output norms notified by DGFT |
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DGFT
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Directorate General of
Foreign Trade, which is headed by the Director General of Foreign Trade.
The office of the DGFT
is responsible for formulating and execution of Foreign Trade Policy,
including licensing.
Till 1991, was known
as the Chief Controller of Imports & Exports (CCI&E). |
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Domestic Tariff Area
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Refers to Area within
India
which is outside the Special Economic Zones. |
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Drawback
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Drawback, in relation
to any goods manufactured in
India and exported,
means the rebate of duty chargeable on any imported material or
excisable material used in the manufacture of such goods in
India
.
The goods include
imported spares, if supplied with capital goods manufactured in
India
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Duty Credit
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Refers to
import duty credit. For example, under the Focus Market Scheme, if an
exporter exports to an identified country Rs.100 worth of goods, he will
get 2.5% of Rs.100 on export of all products to the notified
countries, which he can either use to pay customs duty on his imported
inputs or sell in the market as these scrips would be freely
transferable. Similarly, under the Focus Product
Scheme, duty credit facility at the rate of 2.5%of
f.o.b. value of exports on 50% of export turnover of
notified products would be allowed.
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E-Commerce
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Refers to
electronic commerce. In the context of Foreign Trade Policy,
e-commerce relates to electronic filing and processing of applications
etc. |
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EPCG
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EPCG
refers to the Export Promotion Capital Goods (EPCG) Scheme, which gives
the manufacturer facility for import of capital goods for export
production at concessional rate of duty (5 per cent) against certain
level of export obligation over a period of time. |
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EHTP
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Unit framed under the
Electronic Hardware Technology Park Scheme
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Entrepreneur
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A person who has been
granted a Letter of Approval by the Development Commissioner under sub
–section (9) of Sec 15 of the SEZ Act,2005
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EPZs
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Export Processing
Zones which are special enclaves, separated from the Domestic Tariff
Area (DTA), to provide an internationally competitive duty-free
environment for export production. |
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EOUs |
EOU means Export
Oriented Units. The EOU scheme is complementary to the EPZ scheme,
except that it is widely dispersed in location, unlike EPZs, which are
set up at specific locations. |
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Exim Policy
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Export and Import (Exim)
Policy. got incorporated into the comprehensive Foreign Trade Policy,
which was announced by the Commerce & Industry Minister on
31st
August, 2004 . |
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Excisable goods
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Any goods produced or
manufactured in
India
and subject to a duty of excise under the Central Excise and Salt Act
1944 (1 of 1944). |
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Exporter
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A person who exports
or intends to export and who unless otherwise specifically exempted.
holds an Importer-Exporter Code number |
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Export Obligation
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The obligation to
export the product or products covered by the licence or permission in
terms of quantity, value or both, as may be prescribed or specified by
the licensing or competent authority. |
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FTP
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Refers to Foreign
Trade Policy, announced by the Commerce & Industry Minister on
31st
August, 2004 . It is a 5-year Policy (2004-2009), which
provides a stable policy framework. |
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FTWZ
Handbook (Vol.1)
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Free Trade and
Warehousing Zone
The Handbook of
Procedures (Vol.1) and “Handbook (Vol.2)” means Handbook of Procedures
(Vol.2) published under the provisions of the paragraph 2.4 of the
Policy. |
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Importer
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A person who imports
or intends to import and who unless otherwise specifically exempted.
holds an Importer-Exporter Code number |
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Input-Output
Norms
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The norms
which define the amount of input/inputs required to manufacture
a unit of output.
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Infrastructure
facilities
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Industrial, commercial
and social infrastructure or any other facility for the development of
the Special Economic Zone as notified. |
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ITC(HS)
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ITC (HS)
Classifications of Export and Import Items Book.
It is a system of classification of products for the purposes of export
and import
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Jobbing
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Processing or working
upon of raw materials or semi-finished goods supplied to the job worker
so as to complete a part or whole of the process resulting in the
manufacture or finishing of an article or any operation which is
essential for the aforesaid process. |
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Licensing Authority
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The authority
competent to grant a license under the Act/Order. |
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Licensing Year
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The period beginning
on the 1st April of a year and ending on the 31st
March of the following year. |
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Manufacture
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To make, produce,
fabricate, assemble, process or bring into existence, by hand or by
machine, a new product having a distinctive name, character or use and
shall include processes such as
·
refrigeration,
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re-packing,
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polishing,
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labeling.
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Re-conditioning repair,
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remaking,
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refurbishing,
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testing
calibration,
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Re-engineering.
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agriculture,
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aquaculture,
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animal
husbandry,
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floriculture,
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horticulture,
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pisciculture,
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poultry,
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sericulture,
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viticulture and
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Mining.
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Manufacturer Exporter
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A person who export
goods manufactured by him or intend to export such goods. |
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MAI
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Market Access
Initiative |
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Merchant Exporter
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A person engaged in
trading activity and exporting or intending to export goods.
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NFEP
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Net Foreign Exchange
Earning as a percentage of exports. |
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Notification
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A notification
published in the Official Gazette. |
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Notified Offences
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The offences specified
as such under sub-section (1) of section 21 of SEZ Act,2005 |
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Nominated Agency
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Refers to
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