First of all A Very Good Morning to all the members of cci family. I Wll take this oppurtunity to thanks all of you for appreciating my work and i promise all of you that i will continue till the end.
Now its the right time to introduce the 2 nd part of my series i.e " SEZ - A Need for Enterprises ".
In the first part we discussed about the basics of SEZ and i know it is not sufficient from the learning aspect..
So in this part you will all come across variety of new things regarding SEZ.
So lets go for it -
Meaning of Import and Export under SEZ Act -
Import under SEZ Act, 2005
From outside India
Sale of Goods or Services Within India
1. Central government -
Overall authority for governing, notifying the SEZ and granting the Letter of Approval (‘LOA’)
2. State Government -
Receives and forwards the proposal with recommendations to the Board of Approval.
3. Board of Approval ( BOA ) -
Considers proposals for setting up SEZ and Units in SEZ (proposal for units relating to foreign collaborations and Foreign Direct Investment).
Net Foreign Exchange Requirement -
►A Unit is required to achieve positive NFE cumulatively for a period of 5 years from commencement of production.
NFE for this purpose to be calculated as under :
Positive NFE = A - B > 0, where
A = Free on Board value of exports and other specified supplies;
B = Sum total of the Cost, Insurance and Freight Value of all imported
inputs and value of goods obtained from another SEZ unit/ Export
Oriented Unit/ bonded warehouse etc.
----> As per Instruction No 41 issued my the MoC, NFE is to be calculated in Rupee terms only. In case a unit is NFE negative and claims that it is due to foreign exchange fluctuation, the Approval Committee may consider such cases; on a case to case basis, provided such computations are certified by an authorized bank.
So friends this brings us to the end of part 2.
I hope you would have enjoyed the ride.
Thanks & Regards
Sanyam Arora
CAclubindia
