IMPORT BY SPECIAL ECONOMIC ZONES DEVELOPER/UNIT

 

 

 

 

 

 

1.       Special Economic Zones as  Port, Airport, inland container depot, etc.

2.       Import and procurement of goods by the Developer.-

3.       Import and Procurement.

4.       Goods for personal use

5.       Capital goods

6.       Goods imported before issue of Letter of authority 

7.       Defective Goods

8.       Destruction of goods

9.       Assessment of imported Goods

10.    Procedure for Import

11.    Procedure for Direct Clearance from Port or Airport

12.    Goods imported through courier

13.    Procedure for Import by Post

14.    Import as personal Baggage

15.    Procedure for procurements from the Domestic Tariff Area

16.    Procedure for procurement from warehouse

17.    Procedure for procurement from international Exhibition

18.    Procedure for procurement from EOU/STP/BTP

19.    Procuring goods from another unit

20.    Admission of goods

21.    Utilization of goods.

22.    Co-relation of import consignment with corresponding export consignment

23.    Duration of goods or services in a Special Economic Zone

24.    Transfer of ownership and removal of goods

 

 

 

 

1.       Special economic Zones Port, Airport, inland container depot, etc.

The Special Economic Zone shall be deemed to be a port, airport, inland container depot, land customs station under section 7 of the Customs Act, 1962 – Sec 53

Specified Officer may designate any area or area(s) in the Special Economic Zone as an area for loading and unloading of import or export cargo:

 

As per section 7 of the customs Act, 1962 The Central Government may, by notification in the Official Gazette, appoint-

(a)     the ports and airports which alone shall be customs ports or customs airports for the unloading of imported goods and the loading of export goods or any class of such goods;

(aa)    the places which alone shall be inland container depots for the unloading of imported goods and the loading of export goods or any class of such goods

(b)     the places which alone shall be land customs stations for the clearance of goods imported or to be exported by land or inland water or any class of such goods.

(c)     the routes by which alone goods or any class of goods specified in the notification may pass by land or inland waters into or out of India, or to or from any land customs station from or to any land frontier;

(d)     the ports which alone shall be coastal ports for the carrying on of trade in coastal goods or any class of such goods with all or any specified ports in India .

As per section 29(1) of Customs Act, 1962 vessel or aircraft entering India from place outside India must land only at custom port or a Custom Airport .

2.       Import and procurement of goods by the Developer.- (Rule 12)

The Developer may import or procure goods from the Domestic Tariff Area, without payment of duty, taxes and cess for the authorized operations

The Developer shall make an application, after obtaining approval for the authorized operation  to the Development Commissioner along with the list of goods and services, including machinery, equipments and construction materials required for the authorized operations, duly certified by a Chartered Engineer for approval by the Approval Committee.

The Developer shall declare the place of storage of goods within the Special Economic Zone to the Specified Officer. In case the storage is outside the processing area but within the Special Economic Zone, such storage shall comply with such safeguards as may be necessary for the purpose and approved by the Specified Officer.

The goods imported or procured from the Domestic Tariff Area by the Developer for authorized operations shall be kept in a clearly demarcated area for inspection by the authorized officer before such goods are brought into use.

The Developer shall execute a Bond-cum-Legal Undertaking in Form D, jointly with the Development Commissioner and Specified Officer, with regard to proper accountal and utilization of goods for the authorized operations within a period of one year or such period, as may be extended by the Specified Officer.

The Developer shall not remove goods from the Special Economic Zone to the Domestic Tariff Area except with the permission of the Specified Officer and on payment of duty applicable on such goods.

3.       Import and Procurement – Rule 27

A Unit or Developer may import or procure from the Domestic Tariff Area without payment of duty, taxes or cess or procure from  Domestic Tariff Area after availing export entitlements or procure from other Units in the same or other SEZ or from  EOU/STP/EHTP/BTP all type of goods, including capital goods (new or second hand), raw materials, semi-finished goods, (including semi-finished Jewellery) component, consumables, spares goods and materials for making capital goods required for authorized operations except prohibited items under the Import Trade Control (Harmonized System) Classifications of Export and Import Items.

In case of any doubt as to whether any goods or services are required by a Unit or Developer for authorized operations or not, it shall be decided by the Development Commissioner.

The import of duty free material for setting up educational institutions, hospitals, hotels, residential and/or business complex, leisure and entertainment facilities or any other facilities in the non-processing area of the Special Economic Zone shall be as approved by the Board and import of no duty free material shall be permitted for operation and maintenance of such facilities:

4.       Goods for personal use Rule 27(3)

Any goods imported for the personal use of, or consumption by officials, workmen, staff, owners or any other person in relation to a Developer, shall not be eligible for exemptions, drawbacks and concessions or any other benefit

5.       Capital goods Rule 27(4)

A Developer may also source capital goods, without payment of duty, taxes or cess from a domestic or foreign leasing company, under a valid lease agreement and in such cases Developer and the domestic or foreign leasing company shall jointly file documents for import or domestic procurement, as the case may be.

6.       Goods imported before issue of Letter of authority - Rule 27(7)

The goods already imported or shipped or arrived before the issue of Letter of Approval shall be eligible for duty free clearance provided customs duty has not been paid and goods have not been cleared from Customs or cleared and placed in the Bonded Warehouses.

 

7.       Defective Goods- Rule 27(9)

Where goods or parts thereof, imported or procured from Domestic Tariff Area are found to be

Ø       defective or

Ø       otherwise unfit for use or

Ø       damaged or

Ø       become defective after such import or procurement,

may be sent outside the Special Economic Zone without payment of duty for repairs or replacement, to the supplier or his autorized dealer or be destroyed:

Where overseas supplier or the Domestic Tariff Area supplier of goods does not insist for re-export or for supply back to the Domestic Tariff Area of goods, the same shall not be insisted upon and such goods shall be destroyed with the permission of the Specified Officer:

Destruction shall not be permitted in case of precious and semi-precious stones and precious metals:

In case of return of goods procured from the Domestic Tariff Area, the same shall be allowed on refund of the export entitlement which have been received or availed or claimed by the Domestic Tariff Area supplier or the Unit or the Developer, as the case may be.

A Unit may import the goods exported by it which are either found to be defective or damaged by the overseas buyer or have not been taken delivery of by the overseas buyer, by following the procedure under Rule 29(2) and subject to the following conditions: -

(i)   the identity of the goods is established at the time of re-import ; and

(ii)   the goods are re-imported within the warranty period or the validity of the maintenance contract or a period of one year from the date of export, whichever is later. Rule 29(7).

Replacement of goods imported but found defective shall be allowed admission in Special Economic Zone by way of import or replacement through authorized dealer of the overseas supplier in India- Rule 29(8)