Sub : Notification of ALL SEZs as a port for import and export under Public Notice No. 57 dated 23-2-2005

DGFT had issued Public Notice No. 52 dated 11-2-2005 wherein 8 SEZs i.e. SEZ Santacruz, Kandla, Kochi, Vishakhapatnam, Chennai, Falta, Surat, Noida were notified as specified ports for import and export. Subsequently DGFT issued Public Notice No. 55 dated 18-2-2005 wherein it was notified that “Export shipment under the Advance Licensing Scheme can be effected from any of the SEZs”. Accordingly the facility of specifying SEZs as a port was extended to SEZs.

However, while issuing this Public Notice No. 55 dated 18/2/2005 only the export shipment under the Advance Licensing Scheme were allowed from SEZs. This was creating confusion and accordingly I had written a letter to Shri G. K. Pillai, Additional Secretary, Ministry of Commerce & Industry, Shri K. T. Chacko, DGFT and Shri Rahul Khullar, Joint Secretary, Ministry of Commerce & Industry on 21-2-2005 requesting that all the SEZs should be notified as a port for export as well as for import.

I am happy to inform that Ministry of Commerce and DGFT has acted very promptly and within 2 days of our letter i.e. on 23-2-2005 itself DGFT has issued Public Notice No. 57. This Public Notice makes the following provisions in relation to SEZs:-

(i) A sentence has been added at the end of Paragraph 4.19 of Handbook of Procedures as follows:-

“Any SEZ notified by the Central Government shall also be one of the specified ports for import and export under this paragraph”

(ii) The provision relating to entitlement of DEPB for export to SEZs has been replaced by the following clause:-

“Export made to any Special Economic Zone (SEZ), notified by the Central Government are also entitled to DEPB and the port of registration in such cases will be the respective SEZ only”.

A copy of this Public Notice is enclosed for information please.

GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
PUBLIC NOTICE NO 57/2004-2009)
NEW DELHI : DATED 23rd February, 2005

In exercise of powers conferred under Paragraph 2.4 of the Foreign Trade Policy, 2004-09, the Director General of Foreign Trade hereby makes the following amendments in the Handbook of Procedures (Vol.1) :

1. The amendments made vide Public Notice No. 55 dated 18.2.2005 stands deleted. Following sentence is added at the end of Paragraph 4.19 :

“ Any SEZ notified by the Central Government shall also be one of the specified ports for import and export under this paragraph”

2. The following ICDs shall be added in the list of ICDs mentioned in paragraphs 4.19 and 4.40:

Bhusawal, Jamshedpur, Surajpur and Dadri.

3. The provision related to entitlement of DEPB for exports to SEZs should be replaced by the following clause:

Exports made to any Special Economic Zone (SEZ), notified by the Central Government, are also entitled to DEPB and the port of registration in such cases will be the respective SEZ only.

4. Sl No. 19 of Appendix 27 related to “List of Export Promotion Councils, Commodity Boards and Development Authorities”, as amended vide PN 49 dated 24th January, 2005, stands amended as follows:

19.

5. Paragraph 2.47 pertaining to “Prototypes” is amended as under:

Import of new/second hand prototypes/ second hand samples may be allowed on payment of duty without a licence/ certificate/ permission to an Actual User (industrial) engaged in the production of or having industrial licence/letter of intent for research in the item for which prototype is sought for product development or research, as the case may be, upon a self – declaration to that effect, to the satisfaction of the customs authorities.

6. The word “Pedicinal” appearing at Sl No. 57 of Appendix 15 related to Agri Export Zones (As per Public Notice 45 dated 14.01.05) stands amended as “Medicinal Plants”.

7. Paragraph 4.5 related to “Advance licence for applicants with multi units” stands amended as follows:

Transfer of any duty free material imported or procured against advance licence from one unit of the company to another unit of the same company for manufacturing purpose shall be done with the permission of the jurisdictional Excise Authorities with a clear understanding that no benefit of CENVAT shall be claimed on such transferred inputs. However to avail the facility, all such units should be available in the IEC certificate.

This issues in public interest.

(K.T. CHACKO)
DIRECTOR GENERAL OF FOREIGN TRADE

(Issued from F.No. 01/94/180/PN/AM05/PC-IV)