BOND CUM LEGAL UNDERTAKING

 

 

1.       Bond-cum-Legal Undertaking for Unit

2.       Bond-cum-Legal Undertaking for Developer

3.       Scope of Bond-cum-Legal Undertaking

4.       Procedure for execution of Bond-cum-Legal Undertaking

5.       Conditions Specified in Form D for Developer

6.       Conditions Specified in Form H for Unit

 

1.       Bond-cum-Legal Undertaking for Unit - Rule 22(1)(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;

2.       Bond-cum-Legal Undertaking for Developer - Rule 22(1)(ii)

The Developer and Co-Developer shall execute the Bond-cum-Legal Undertaking in Form D with regard to their obligations regarding proper utilization of goods, including goods procured or imported by a contractor duly authorized by the Developer or Co-Developer as the case may be;

The Bond-cum-Legal undertaking shall be jointly accepted by Development Commissioner and by the Specified Officer:

3.       Scope of Bond-cum-Legal Undertaking Rule 22(1)(iii)

The Bond-cum-Legal undertaking executed by the Unit or 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

(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.

4.       Procedure for execution of Bond-cum-Legal Undertaking Rule 22(1)(iv)

The procedure for execution of Bond-cum-Legal Undertaking shall be as under:-

(a) Execution - The Bond-cum-Legal Undertaking, where the 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) Value - The value of the Bond-cum-Legal Undertaking shall be equal to the amount of effective duties leviable on import or procurement from the Domestic Tariff Area of the projected requirement of capital goods, raw materials, spares, consumables, intermediates, components, parts, packing materials 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 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)  Shortage in Value - Where the value of Bond-cum-Legal undertaking executed falls short on account of requirement of additional goods or the Developer shall submit additional Bond-cum-Legal Undertaking;

(d) Performance monitoring - 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  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) Copies - 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 Developer

(f)   Acceptance - Duly completed Bond-cum-legal undertaking executed by the developer, shall be deemed to have been accepted, if no communication is received within seven working days from the date of its submission.

5.       Conditions Specified in Form D for Developer

1.   Developer shall observe all the provisions of the Special Economic Zones Act, 2005 and the rules and orders made there-under in respect of the said goods.

2.   Developer shall refund an amount equal to the benefits of exemptions, drawback, cess and concessions availed on account of the goods and services in terms of provisions of rule 25 of Special Economic Zones Rules 2006.

3.   Developer, shall furnish to the Assistant Commissioner of Customs or Deputy Commissioner of Customs as the case may be, at port or air-port or inland container depot or land customs station or a warehouse evidence to his satisfaction within a period of 45 days from the date of dispatch from any warehouse or unit that the said goods have duly arrived in the Special Economic Zone.

4.   Developer shall be wholly and solely responsible for ensuring that there shall be no pilferage during transit of the said goods when dispatched from the place of import or the factory of manufacture or from the warehouse to the Special Economic Zone and vice versa and Unit , shall pay the duty on pilfered goods, if any.

5.   Developer shall maintain detailed accounts of all goods imported or procured from Domestic Tariff Area or consumed and utilized, in proper form, including of those remaining in stock and those sent temporarily outside the Special Economic Zone in the Domestic Tariff Area under their obligation, and shall produce such accounts for inspection of the Specific Officer or such other authorized officer.

6.   Developer shall, submit to the Development Commissioner and the Specified Officer, quarterly and half yearly returns within a period of thirty days following the close of quarter/half year, as prescribed under the Special Economic Zone Rules, 2006. In case of wrong submission of such information or failure to submit such information within the stipulated time, the permission granted to us for carrying out the authorized operations may be withdrawn and/or the permission for further imports/domestic procurement and sales in the Domestic Tariff Area may be stopped.

7.   Developer shall fulfill other conditions stipulated in the Special Economic Zones Act, 2005, Special Economic Zones Rules, 2006 and orders made there-under, as amended from time-to-time.

8.   Developer shall not change the name and style under which Unit, are doing.

      Business or change the location except with the written permission of the Development Commissioner of the Special Economic Zone.

6.       Conditions Specified in Form H for Unit

1.   Unit shall abide by all the provisions of the Special Economic Zones Act, 2005 and the rules and orders made there-under in respect of the goods for authorized operations in the Special Economic Zone.

2.   Unit shall pay on or before a date specified in a notice of demand, all duties chargeable on the goods not removed on termination of validity here-in-stated-above of the Letter of Approval.

3.   Unit shall furnish to the Asstt. Commissioner of Customs or Dy. Commissioner of Customs, as the case may be, at port or air-port or inland container depot or land customs station or a warehouse evidence to his satisfaction within a period of forty-five days from the date of dispatch from any warehouse or unit that the said goods have duly arrived in our unit in the Special Economic Zone.

4.   Unit shall be wholly and solely responsible for ensuring that there shall be no pilferage during transit of the said goods when dispatched from the place of import or the factory of manufacture or from the warehouse to the unit in the Special Economic Zone and vice versa and Unit , shall pay the duty on pilfered goods, if any.

5.   Unit shall maintain accounts of all goods imported or procured from the Domestic Tariff Area or consumed and utilized, in proper form, including those remaining in stock and those sent temporarily out side the Special Economic Zone in the Domestic Tariff Area under our obligation and shall produce such accounts for inspection of the Specified Officer or Authorized Officer.

6.   Unit shall intimate the date of commencement of the production/service activities for export within one month of such date to the Development Commissioner.

7.   Unit shall, after the commencement of production or service activities, submit to the Development Commissioner and the Specified Officer, Annual Performance Return within a period of 90 days following the close of financial year, in the form prescribed under the Special Economic Zone Rules, 2006, certified by a Chartered Accountant. In case of wrong submission of such information or failure to submit such information within the stipulated time, the permission granted to us for carrying out the authorized operations may be withdrawn and/or the permission for further imports and sales in the Domestic Tariff Area may be stopped.

8.   Unit shall achieve positive Net Foreign Exchange Earning and shall fulfill other conditions stipulated in the Letter of Approval and in case of failure to achieve the said positive Net Foreign Exchange Earning, except when the fulfillment of such conditions is prevented or delayed because of any law & order, proclamation or regulation or ordinance of the Government, we shall be liable for penal action under the provisions of the Foreign Trade (Development and Regulation) Act, 1992.

9.   Unit shall pay the duties on the goods and services sold in Domestic Tariff Area in terms of Special Economic Zones Act, 2005 and the rules and orders made there-under.

10. Unit shall refund an amount equal to the benefits of exemptions, drawback, cess and concessions availed on account of the goods and services in terms of provisions of rule 25 of Special Economic Zones Rules 2006.

11. Unit shall not dispose of goods and services admitted into the Special Economic Zone or goods manufactured or services to the Domestic Tariff Area except as provided under Special Economic Zones Act, 2005 and the rules and orders made there-under.

12. Unit shall comply with the conditions and limitations stipulated in the rules on temporary removal of goods to the Domestic Tariff Area, without payment of duty, for the purposes of sub-contracting or test or repairs or reconditioning or processing or display.

13. Unit shall not change the name and style under which Unit are doing business or change the location of the manufacturing premises except with the written permission of the Development Commissioner.

14.  Unit shall intimate any changes in the Board of Directors/Partners, telephone No., E-mail address, Web-Site, Pass port No., Bank Address and Factory address, forthwith, to the Development Commissioner and the Specified Officer.

15.  The Government through the Specified Officer or any other authorized officer may recover the sums due from the obligors as provided for in condition 2 above.

16. Any other order issued by the Central Government in this regard shall be final and binding and we, the obligors hereby undertake to comply unconditionally with such an order.

17. Unit shall be bound by the changes, if any, made in the provisions of the Special Economic Zones Act, 2005 and the rules.

18. Any stamp duties payable on this document or any document executed there-under shall be borne by us.