Sub : Notification of sez as a port by DGFT vide public notice no. 52/2004-2009 dated 11-2-2005

DGFT has issued a Public Notice No. 52/2004-2009 dated 11-2-2005 wherein Paragraph 4.19 of the Handbook of Procedures has been amended (copy of the Public Notice is enclosed). As per the amendments carried out by DGFT the following SEZs have been included as a specified port for import and export under this para:-

“The following SEZs shall also be one of the specified ports for import and export under this Paragraph:

SEZ Santacruz, Kandla, Kochi, Visakhapatnam, Chennai, FALTA, Surat, NOIDA”

In view of this amendment the SEZ stands notified as a port for Advance Licence as well as EPCG purpose because as per Paragraph 5.3.3 of Handbook of Procedures, EPCG Licence shall be issued with a single port of registration mentioned in paragraph 4.19 of Handbook of Procedures. Since SEZs has been notified as a port under Paragraph 4.19, they stand notified as a port for EPCG as well.

This is a major amendment carried out by the DGFT. It may be recalled that this issue was taken up by SEZ units in the Open House meetings held in Cochin, Hyderabad and in Mumbai. It was informed in these open houses that because of non notification of SEZ as a port the SEZ units are not able to make supplies to the Advance Licence Holders/EPCG Licence Holders. EPCES had taken up this issue with DGFT, Ministry of Commerce & Industry and Department of Revenue. Ministry of Commerce had also pursued this matter vigorously with DGFT. Accordingly this amendment has been carried out. The issue has been taken up further with DoR and it is expected that DoR would also carry out the necessary changes.

As you are aware recently DGFT has already extended the facility of DFRC to SEZ vide Notification No. 18/ 2004 dated 18-1-2005 and Public Notice No. 47/2004 dated 18-1-2005. DGFT has also issued a Policy Circular No. 16/2004 dated 18-1-2005 itself. (conveyed by EPCES Circular No. 23 dated 24-1-2005). DoR has recently issued a circular No. 6/2005-Cus dated 3-2-2005 (conveyed by EPCES Circular No. 25 dated 7-2-2005) wherein the procedure for grant of drawback for SEZ units has also been notified. These issues were also pursued vigorously by EPCES till the necessary solutions were arrived at. Hence some of the major issues related to SEZs have been resolved under the guidance of Shri G. K. Pillai, Additional Secretary, Ministry of Commerce & Industry and Shri Rahul Khullar, Joint Secretary, Ministry of Commerce & Industry.

In respect of Fast Track Scheme for the EOUs, DGFT has already issued Public Notice No. 50/2004-2009 dated 24-1-2005 (conveyed by EPCES Circular No. 24 dated 24-1-2005) carrying out the amendments and DoR has also issued a draft circular. This draft circular was circulated to EOUs and the feedback provided by the EOUs has been sent to DoR today. It is expected that DoR will take a view on these issues and Fast Track Scheme shall be implemented by DoR shortly.

This is for your information please.

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TO BE PUBLISHED IN THE GAZETTE OF INDIA

EXTRAORDINARY

(PART – I, SECTION-1)

GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT OF COMMERCE PUBLIC NOTICE NO.52 /2004-2009
Dated: 11th February, 2005

In exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy, 2004-2009, the Director General of Foreign Trade hereby makes the following amendments in the Handbook of Procedures (Vol. I):-

1. In Para 4.19, the following addition shall be made:

“The following SEZs shall also be one of the specified ports for import and export under this paragraph:

SEZ Santacruz, Kandla, Kochi, Vishakhapatnam, Chennai, FALTA, Surat, NOIDA”

This issues in Public Interest.

(K.T.Chacko)
Director General of Foreign Trade

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(Issued from F.No.01/92/180/034/AM05/PC.II)