1. General Conditions of Export
2. Procedure for Export
3. Export as Personal baggage
4. Export for participation in Exhibition abroad
5. Conditions for Export through another unit/EOU/EHTP/BTP/STP
6. Procedure for export through a merchant exporter or status
7. Procedure of Transfer of Goods to another Units or EOU/EHTP/BTP/STP Unit
8. Conditions for transfer of Goods to another Units or EOU/EHTP/BTP/STP Unit
1. General Conditions of Export - Rule 45
A Unit may export goods or services as per the terms and conditions of Letter of Approval including agro-products, partly processed goods, sub-assemblies and components except prohibited items under the Import Trade Control (Harmonized System) Classification of Export and Import Items and the Unit may also export by-products, rejects, waste scrap arising out of the manufacturing process.
2. Procedure for Export � Rule 46(1)
The procedure for export from Special Economic Zone through seaports or airports or Inland Container Depot or Container Freight Station or Land Customs Station or by Post or by Courier or by Personal Carriage, as the case may be, shall be as under: -
(a) The Unit shall file with the Authorized Officer of Customs in the Special Economic Zone following documents namely
� Shipping Bill, in quadruplicate,
� packing list
� and Currency Declaration Form (GR) (in duplicate):
There shall be exemption from declaration in the forms, GR or SDF or PP or SOFTEX as referred in the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000 notified vide Reserve Bank of India Notification No: FEMA 23/2000-RB dated 3rd May, 2000 as amended from time to time in respect of export value up to 25000US$ or for export value as may be notified by the Reserve Bank of India, from time to time;
GR, PP and SOFTEX forms are forms on which exports are required to be declared. GR forms are required to be completed in duplicate for export otherwise than by Post including export of software in physical form i.e. magnetic tapes/discs and paper media. PP forms are required to be completed in duplicate for export by Post. SOFTEX forms are required to be completed in triplicate for declaration of export of software otherwise than in physical form, i.e. magnetic tapes/discs, and paper media.
On account of introduction of Electronic Data Interchange (EDI) System at certain Customs offices where shipping bills are processed electronically, the existing declaration in GR form is replaced by a declaration in form SDF (Statutory Declaration Form). The SDF form should be submitted in duplicate (to be annexed to the relative shipping bill) to the concerned Commissioner of Customs. After verifying and authenticating the declaration in form SDF, the Commissioner of Customs will hand over to the exporter, one copy of the shipping bill marked �Exchange Control Copy� in which form SDF has been appended for being submitted to the authorised dealer within 21 days from the date of export. The authorised dealer should accept the Exchange Control (EC) copy of the shipping bill and form SDF appended thereto, submitted by the exporter for collection/negotiation of shipping documents. The manner of disposal of EC copy of shipping Bill (and form SDF appended thereto) is same as that for GR forms.
(b) the Shipping Bill shall be registered, assigned a running serial number and assessed by the Authorized Officer in the manner and procedure as is followed in case of exports under free shipping bill without any requirement of the counter signature;
(c) the goods shall not be subjected to routine examination and �Let Export Order� shall be given on the basis of self certification by the Unit:
�Self certification� means the certification regarding sealing of container or package of goods under export given by the Unit and includes the certificate regarding contents and sealing of the container or package given by the owner or the working partner or the Managing Director or the Company Secretary of the said Unit or any person authorized in this behalf by the owner or company or working partner, as the case may be, on the copies of Shipping Bill stating that the package or container in respect of goods under export have been sealed in his presence;
(d) the goods may be examined at the port, airport Inland Container Depot or Container Freight Station or Land Customs Station only in case of specific intelligence or information after obtaining the written permission of Deputy or Assistant Commissioner of Customs having jurisdiction over the said port, airport, Inland Container Depot or Container Freight Station or Land Customs Station, as the case may be, in writing;
(e) the Unit may export through Inland Container Depot located in the Special Economic Zone, or through any port or airport or Inland Container Depot:
In case of export of large quantities of cargo where it may not be possible to ship the cargo from the Special Economic Zone in one consignment, the Specified Officer may allow the export of such cargo on execution of a Bond for the duty involved subject to the condition that the Unit shall submit the proof of export within 90 days of removal of such cargo under Bond, failing which applicable duty on the goods not exported shall be payable in terms of the Bond;
Note- Distinction between an Inland Container Depot and Container Freight Station(ICD/ CFS)
Functionally there is no distinction between an ICD/CFS as both are transit facilities, which offer services for containerization of break bulk cargo and vice-versa. These could be served by rail and/ or road transport. An ICD is generally located in the interiors (outside the port towns) of the country away from the servicing ports. CFS, on the other hand, is an off dock facility located near the servicing ports which helps in decongesting the port by shifting cargo and Customs related activities outside the port area. CFSs are largely expected to deal with break-bulk cargo originating/terminating in the immediate hinterland of a port any may also deal with rail borne traffic to and from inland locations.
3. Export as Personal baggage- Rule 46(6)
A Unit may export goods to be carried by foreign bound passengers authorized by the Unit in this behalf as personal baggage, subject to the following conditions, namely:-
(i) The Unit shall submit the shipping bill, invoice and Currency Declaration Form (GR) with the authorised officer;
(ii) The Shipping Bill shall be assessed by the Authorised Officer in the same manner as is done in the case of exports under free shipping bill;
(iii) The goods shall be transferred from the Special Economic Zone to the airport under the cover of assessed shipping bill by the authorized agency approved by the Specified Officer or under escort of Authorized Officer;
(iv) The goods shall be deposited with the warehouse at the airport against a �detention receipt� issued by the Customs authorities at the airport;
(v) The consignment shall be handed over to the authorized passenger at the time of departure on submission of original detention receipt;
(vi) The Unit shall submit to the Specified Officer, the proof of export issued by the Customs authority at the airport within 15 days from the date of removal of the goods from the Special Economic Zone;
(vii) Where the facility of custodian is available in the Special Economic Zone and the Airport, goods shall be transferred and delivered to the authorized passenger at the airport by the custodian.
(viii) personal carriage of spare parts by foreign bound passenger shall be allowed in case the spare parts are required for repairs of exported goods at customer site and following documents shall be submitted as proof of export, namely:-
(a) permission letter from the authorised officer for exports; and
(b) invoice with value.
(ix) personal Carriage of any goods for exports by authorized passenger on Document Against Acceptance or Cash On Delivery basis may be allowed provided the Unit submits following documents, namely:-
(a) copy of Shipping Bill; and
(b) the bank Certificate for realization of proceeds shall be submitted within 30 days of delivery of the goods.
4. Export for participation in Exhibition abroad- Rule 46(9)
A Unit may export goods, including gems and jewellery for display or participation in exhibitions abroad subject to following conditions, namely: -
(i) the Unit shall give advance intimation to the Development Commissioner to participate in the exhibition abroad or for taking goods abroad for display and sale;
(ii) shipping bill along with relevant documents shall be filed with the authorized officer in the same manner and following the same procedure as applicable to free shipping bill;
(iii) photographs of the items being taken out for exhibition, attested by the Unit, shall be furnished in case of gems and jewellery;
(iv) goods unsold in the exhibition or display tour shall be imported within 45 days from the completion of the exhibition or within such days as may be notified by the Central Government;
(v) the Unit shall file Bill of Entry for import of unsold goods as required in case of imports and it shall be assessed in the same manner and subject to same procedure as applicable to imported goods;
(vi) the goods so imported shall be allowed admission into the Unit free of duty, subject to establishment of identity of the goods with reference to export documents:
(vii) the Unit shall submit proof of inward remittance in respect of goods sold in the exhibition.
5. Conditions for Export through another unit/EOU/EHTP/BTP/STP etc Rule 46(10)
A Unit may export goods and services, through a another Unit or merchant exporter or status holder or /EOU/EHTP/BTP/STP Unit subject to following conditions, namely.-
(i) Goods or services shall be manufactured or developed in the Unit concerned;
(ii) Requirements of positive Net Foreign Exchange Earning or any other conditions relating to authorized operations shall continue to be discharged by the Unit;
(iii) Export orders so procured shall be executed within the provisions of these rules and the goods shall be directly transferred from the Unit to the airport or port of shipment;
(iv) Fulfillment of positive Net Foreign Exchange Earning by the Unit shall be reckoned on the basis of the price at which the goods or services were supplied by the Unit to the status holder or merchant exporter or other Unit or EOU/EHTP/BTP/STP Unit:
Such export shall be counted towards fulfillment of obligations of the Unit only.
6. Procedure for export through a merchant exporter or status � Rule 46(11)
(i) goods shall be exported directly from the Special Economic Zone or through any other port where the merchant exporter files his shipping bill, in which case the goods shall move directly from the Special economic Zone to the said port of export on the basis of pink shipping bill as if these were movement of goods from one Warehouse to another;
(ii) Export document shall contain the name of the merchant exporter or the status holder and the Unit;
(iii) Merchant exporter or status holder, as the case may be, shall export goods under a free Shipping Bill and submit a disclaimer that no Drawback, Duty Exemption Pass Book credit or fulfillment of export obligation under any export promotion scheme under the Foreign Trade Policy shall be availed by him on the goods so exported.
7. Procedure of Transfer of Goods to another Units or EOU / EHTP / BTP / STP Unit - Rule 46(12)
A Unit may transfer goods, including goods imported or procured from Domestic Tariff Area, to another Unit or EOU/EHTP/BTP/STP Unit: subject to the following procedures, namely.-
(i) The receiving EOU/EHTP/BTP/STP Unit shall file Bill of Entry for warehousing, in quintuplicate along with invoice, procurement certificate issued by the Customs Officer incharge of the receiving EOU/EHTP/BTP/STP Unit and packing list with the Authorised Officer along with copy of the Letter of Approval and bonding licence:
In case the receiving Unit is a Special Economic Zone unit, Bill of Entry for home consumption shall be filed in place of Bill of Entry for warehousing
(ii) On the basis of such Bill of Entry assessed by the Authorised Officer,goods shall be allowed to be cleared to receiving EOU/EHTP/BTP/STP/SEZ Unit .
(iii) The receiving EOU/EHTP/BTP/STP/SEZ Unit shall submit the re-warehousing certificate to the Authorised Officer having jurisdiction over the supplying Unit within 45 days
(iv) Where supplying and receiving Units are located in the same Special Economic Zone, movement of goods including raw materials shall be allowed subject to maintenance of accounts by both receiving and supplying Units and no Bill of Entry shall be required to be filed.
8. Conditions for transfer of Goods to another Units or EOU/EHTP/BTP/STP Unit-Rule 46(13)
The Authorized Officer may permit a Unit to transfer goods to an EOU/EHTP/BTP/STP or to a bonded warehouse, without payment of duty subject to following conditions, namely.-
(i) the Unit shall transfer the goods against Procurement Certificate issued by the Central Excise or Customs Officer in charge of receiving EOU/EHTP/BTP/STP Unit.
(ii) a warehousing Bill of Entry shall be filed by the EOU/EHTP/BTP/STP Unit or by the supplying Special Economic Zone Unit on behalf of the receiving EOU/EHTP/BTP/STP as the case may be, with the Authorised officer;
(iii) EOU/EHTP/BTP/STP Unit shall submit re-warehousing certificate duly signed by the Central Excise or Customs officer having jurisdiction over the receiving EOU/EHTP/BTP/STP Unit within a period of 45 days from the date of clearance of the goods to the Authorised Officer;
(iv) Where the EOU/EHTP/BTP/STP Unit fails to submit the re-warehousing certificate within the period of 45 days of clearance of goods, the Authorised officer shall take up the matter with the Central Excise or Customs Officer of the receiving Unit to initiate recovery proceeding against such EOU/EHTP/BTP/STP Unit.
(v) where goods admitted into a Unit from Domestic Tariff Area on which entitlement under Duty Exemption Pass Book Scheme had been availed are removed as such or after subjecting it to a process not amounting to manufacture to an EOU/EHTP/BTP/STP Units directly or through a Unit in the same Special Economic Zone or another Special Economic Zone, the Customs duty equal to entitlement availed under the Duty Exemption Pass Book Scheme shall be paid.
Labour Rules for SEZ
Special Economic Zones and units/ IT units set up in IT parks are not exempted from operation of labour laws. Certainly, there are a lot of exemptions granted to units in that area but most of them are in the form of concessions, rebates etc and not necessarily be in free to fire any employee at any time or right to diverse from labour laws. In certain SEZs conducting trade union activities are also banned, but that is not available in all states.
If an IT company is registered under the State's Shops and Commercial Establishments Act, it has to follow all provisions of the Act. Similarly, workmen are also covered by Industrial Disputes Act and other relevant legislations. Employees Provident Fund is applicable to them. An employee leaving an IT company after a continuous service of five years is expected to be paid gratuity as per the same provisions as is applicable to employees is other industries. If the area is notified as implemented area for ESI, the scheme will be applicable to the workers. Even outside the SEZ there are plenty of places where ESI is not applicable.
Therefore, liberalization is not in respect of waiver from social security schemes but from some other economic burdens and that also for a specific period.
28th May 2014 From India, Mumbai