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 Sector Specific Condition For Approval For SEZ

Appendix 14-IC SECTOR SPECIFIC REQUIREMENTS FOR EOU/SEZ UNITS

(1) Coffee

Export of imported coffee shall be subject to approval from Coffee Board under relevant Act.

(2) HIGH GRADE IRON ORE

Proposals for export of high-grade i.e. 64% Fe Iron Ore and above, except iron ore of Goa origin and Redi origin are presently canalized through MMTC and its exports would be subject to annual quantity allocation by the BOA.

(3) POLYESTER YARN:

(i) No job work with EOU/SEZ/DTA unit shall be permitted. However, this shall not be applicable to units who intend to send the fabric {made out of Polyester (or) texturised yarn within the unit} for jobwork to EOU/SEZ/DTA unit for dyeing of the fabric.

(ii) None of the units making polyester yarn - existing or new - shall be permitted to do exports through third party and they have to export directly;

(iii) These restrictions shall not apply to units in the same SEZ.

(4) SALE OF SURPLUS POWER:

The following procedure shall apply in regard to sale of surplus power by EOU/SEZ units:-

(i) Henceforth whenever the Development Commissioner receives proposals for sale of surplus power, it would be examined in consultation with the State Government, including State Electricity Board. This shall, however, not apply to sale of power within the SEZ. The Development Commissioner will report the norms of raw materials and consumables required for generation of a unit of power for consideration and approval by the Board of Approval.

(ii) No duty shall be required to be paid on sale of surplus power from an EOU/SEZ unit to another EOU/ SEZ unit. Development Commissioner of SEZ concerned would be informed in writing of such supply and proper account of the consumption of raw material would be maintained by the supplying unit. The value of imported inputs and consumables shall be taken into account for NFE calculations of the supplying unit.

(iii) The unit will obtain permission of the Assistant Commissioner of Customs/ Central Excise for sale of surplus power in the DTA, after obtaining permission from the SEBs under the relevant statute. Duty on sale of power to the DTA shall be as per the Notification of the Department of Revenue in this regard.

(iv) Due care shall be taken by the Development Commissioner / Board of Approval while approving the power plants by EOU/SEZ units vis a vis their actual requirement.

(5) Guidelines for the existing Plastic units

The following shall be guidelines for the existing plastic units under EOU/SEZ scheme: -

(i) Extension of LOP of the existing units under EOU/SEZ Scheme may be granted based on the terms & conditions of earlier LOP.

(ii) No enhancement of the production capacity be allowed.

(iii) Relocation of the existing units from one Zone to another will be approved on case to case basis.

(iv) EOU/SEZ units be exempted from the purview of Public Notice No. 392 dated 1.1.1997 regarding restrictions on physical forms & sizes and inspection would be done by Zone. However for any supply into DTA, all conditions of public notice will apply.

(6) NON ITA-I ITEMS THAT MAY BE SOLD IN DTA

Following non-ITA-I items may be sold in the DTA in terms of para 13.1(f) of the EOU Scheme and 16(f) of the SEZ Scheme:

(i) Colour Display Tubes(CDT) for monitors

(ii) Deflection components for colour monitors

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