Changes made to the sourcing of gems and jewellery units
MoCI, vide notification dated February 5, 2024, amended the SEZ Rules by issuing the SEZ (Amendment) Rules, 2024. The amendment extends the sourcing option for gem and jewellery units by allowing them to obtain gold, silver or platinum through the nominated agencies or free of charge from foreign buyers and export thereof to the same foreign buyers.
Financial products, services, and institutions to be included under IFSCs
MoF, vide notification dated February 28, 2024, amended the provisions of the SEZ Act, 2005 ("SEZ Act") and SEZ Rules. The key modifications are as follows:
- a proviso is inserted to section 13 (2) (f) of the SEZ Act, stating that every approval committee must consist of a representative of the Developer concerned - Special invitee. Provided that for a unit requiring recognition, registration, license or authorisation by the IFSCA the Chairperson of the approval committee under section 13(2)(a) must be the 'Administrator (IFSCA)';
- a proviso is inserted to the rule 17 (1) of the SEZ Rules, stating that an application seeking permission for setting up a Unit requiring recognition, registration, license or authorisation by the IFSCA must be made to the Administrator (IFSCA) in Form FA, and Form F will not be applicable to such Unit; and
- Form FA (Consolidated Application Form) is inserted to the SEZ Rules.
Import, export, procurement or supply of aircraft engines by a unit in an IFSC
MoCI, vide notification dated June 6, 2024, has issued the SEZ (Third Amendment) Rules, 2024 amending the SEZ Rules. Rule 29A of the SEZ Rules prescribes the procedure to be followed by a unit in an IFSC approved by IFSCA for import or export or procurement from or supply to Domestic Tariff Area ("DTA") of aircraft. Under this amendment, the term 'aircraft' must be substituted to include 'aircraft or aircraft engine'. Consequently, units in an IFSC can import, export, procure or supply aircraft engines to/from a DTA.
Amendment made to the consideration of proposals for setting up of unit in SEZ
MoCI, vide notification dated June 20, 2024, has issued the SEZ (Fourth Amendment) Rules, 2024 amending Rule 18(4)(d) of the SEZ Rules. As per the said Rule, proposal for setting up units engaged in import of other used goods for recycling is not permitted, however, the proviso to the said Rule permits import of used goods for reconditioning, repair and re-engineering provided that the same are exported, and a one-to-one correlation with imports is maintained. As per the amendment, an additional proviso is inserted permitting non-hazardous metal and metal-alloy wastes in metallic, non-dispersible form, free of specified contaminants generated from the reconditioning, repair or reengineering of used goods, to be sold in the DTA upon payment of applicable customs duty. Please note that such supply will be considered as import and will be allowed only to the actual users or trader for use of actual users authorised by the State Pollution Control Board, subject to verification of specified documents by the customs authority.
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