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Authorities
COMPOSITION OF THE BOARD OF APPROVAL:

The Board of Approval is constituted by the Central Government. It comprises of the following members:

  • Secretary (Ministry / Department of Commerce): Chairperson
  • Two Joint Secretaries (Ministry / Department Members of Revenue):
  • Joint Secretary (Ministry / Department of Member Economic Affairs / Finance):
  • Joint Secretary (Ministry / Department of Member Commerce):
  • Joint Secretary (Ministry / Department of Member Industrial Policy and Promotion):
  • Joint Secretary (Ministry / Department of Member Science and Technology):
  • Joint Secretary (Ministry / Department of Small Scale Industries and Agro and Member Rural Industries):
  • Joint Secretary (Ministry / Department of Member Home Affairs):
  • Joint Secretary (Ministry / Department of Member Defence):
  • Joint Secretary (Ministry / Department of Member Environment and Forests):
  • Joint Secretary (Ministry / Department of Law): Member
  • Joint Secretary (Ministry / Department of Overseas Indian Affairs): Member
  • Joint Secretary (Ministry / Department of Member Urban Development):
  • A Nominee of the State Government concerned: Member
  • Director General of Foreign Trade or his nominee: Member
  • Development Commissioner concerned: Member
  • A Professor in the Indian Institute of Management or the Indian Institute of Member Foreign Trade:
  • Deputy Secretary (Ministry / Department Member Secretary of Commerce):

DUTIES, POWERS AND FUNCTIONS OF BOARD OF APPROVAL:

Duties:

The Board shall have the following duties:

  • to promote and ensure orderly development of the Special Economic Zones;
  • to be bound by the Central Government's decision on questions of policy given to it in writing by the Central Government from time to time.

Powers and Functions:

  • Granting approval to proposal / rejecting proposal / modifying proposals, for establishment of the Special Economic Zones;
  • Granting approval of authorized operations to be carried out in the Special Economic Zones by the Developer;
  • Granting approval to Developers / Units for foreign collaborations and foreign direct investments in the Special Economic Zone for its development, operation and maintenance;
  • Granting approval to proposal / rejecting proposal / modifying proposals, for providing infrastructure facilities in a Special Economic Zone;
  • Granting a licence to an industrial undertaking as referred to in Section 3(d) of the Industries (Development and Regulation) Act, 1951, which is established or proposed to be established in a Special Economic Zone;
  • Suspension of the Letter of Approval granted to the Developer in case he fails to discharge his duties or functions / defaults in complying with the Board's directions / violates the terms and conditions of the Letter of Approval;
  • Appointment of an Administrator for discharging the suspended Developer's functions;
  • Disposing of Appeals preferred by a person aggrieved by an order of the Approval Committee regarding the approval with or without modifications / rejection of the proposal for setting up a Unit in a Special Economic Zone;
  • Disposing of Appeals preferred by a person aggrieved by an order of the Approval Committee regarding cancellation of the Letter of Approval to the entrepreneur;
  • Performing other functions as assigned by the Central Government;
  • Making decisions as to whether a particular activity constitutes "manufacture" as defined in the Act;
  • Delegation of powers and functions to one or more Development Commissioners for ensuring effective discharge of the Board's own functions.

DEVELOPMENT COMMISSIONER

APPOINTMENT:

A Deputy Secretary to the Government of India may be appointed by the Central Government as the Development Commissioner of one or more Special Economic Zones. The Central Government may also appoint other officers and employees for assisting the Development Commissioner in discharging his functions.

FUNCTIONS OF DEVELOPMENT COMMISSIONER:

The Development Commissioner has the following functions:

1. Taking all steps to discharge his functions under the Special Economic Zones Act, 2005 and the Special Economic Zones Rules, 2006 which shall include the following:

  • Scrutinizing the proposal to set up a Special Economic Zone and placing it before the Approval Committee for its consideration;
  • Placing before the Board for its consideration, proposals by the Developers / Units for:

    • foreign collaborations and foreign direct investments in a Special Economic Zone;
    • granting a licence to an industrial undertaking as referred to in Section 3(d) of the Industries (Development and Regulation) Act, 1951, which is established or proposed to be established in a Special Economic Zone.
  • Receiving prior intimation by the agency / officer authorized by the Central Government for conducting investigations, inspection, search or seizure in a Special Economic Zone / Unit, and giving approval for the same;
  • Ratification of the Bond-cum-Legal undertaking executed by a Developer / Unit regarding their obligations;
  • Issuance of a Letter of Approval for setting up of a Unit in a Special Economic Zone upon approval of the proposal by the Approval Committee;
  • Ensuring submission of the Annual Performance Reports by the Units and placing the same before the Approval Committee for consideration;
  • Ensuring submission of the Quarterly Report by the Developer and placing the same before the Approval Committee for consideration;
  • Initiating penal action against a Developer / Unit failing to achieve positive net foreign exchange earning;
  • Taking decision in case of any doubt regarding the requirement of any goods or services by a Unit / Developer for authorized operations;
  • Granting permission for examination of imports and domestic procurement by a Developer / Unit based on self-declaration / routine examination / necessary examination;
  • Issuance of Kimberly Process Certificate for import or export of rough diamonds shipment;
  • Sanctioning claims of Replenishment Licence to the Domestic Tariff Area Supplier of cut and polished diamonds and precious and semi-precious stones;
  • Receiving and processing applications from Developer / Units in Special Economic Zone seeking exemption from service tax and monitoring availment of the exemption;
  • Receiving advance intimation from the Unit for export of goods, including gems and jewellery for display or participation in exhibitions abroad subject to certain conditions;
  • Receiving Applications from Suppliers of precious and semi-precious stones from Domestic Tariff Area to Units for seeking Replenishment Licence as provided under the Foreign Trade Policy and Handbook;
  • Issuing Identity Cards to the entrepreneurs and regular employees of the Units for regulating the entry of persons to the processing area of the Special Economic Zone;
  • Issuing Temporary Identity Cards to casual visitors and contractors;
  • Collecting from a sick Unit, a revival package to be forwarded to the Board for considering the grant of extension of time to attain Positive Net Foreign Exchange up to 5 years;
  • Authorizing an officer of customs to act as a Specified Officer in the absence of appointment of a Specified Officer in a Special Economic Zone;
  • Executing the legal undertaking for payment of penalties that may be imposed on a Unit for failing to fulfill the terms and conditions of the Letter of Approval;
  • Granting permission to a Unit for exit from a Special Economic Zone as one time option on payment of duty on capital goods;
  • Issuing specific Orders for routine examination of goods entering a Special Economic Zone;
  • Directing the Specified Officer to determine Customs Duty payable by the Unit in case of cancellation of the Letter of Approval;
  • Extending the period for payment of the duty as determined by the Specified Officer by another 3 months if the Unit fails to pay it within the initial period of 3 months from the date of communication of the duty by the Specified Officer;
  • Assuming possession of the goods if the Unit fails to pay the duty after cancellation of the Letter of Approval.

2. Ensuring speedy development of the Special Economic Zone and working for the promotion of exports from there and to achieve this, performing the following functions:

  • guiding the entrepreneurs for setting up of Units in the Special Economic Zone;
  • ensuring and taking suitable steps for effective promotion of exports from the Special Economic Zone;
  • ensuring proper co-ordination with the Central Government or the concerned State Government Departments / Agencies for performing the above mentioned functions;
  • monitoring the performance of the Developer and the Units in a Special Economic Zone, and calling for the required information from a Developer / Unit for this purpose;
  • discharging other functions as delegated by the Board;
  • exercising administrative control and supervision over the officers and employees appointed for assisting the Development Commissioner;
  • discharging functions and exercising powers as delegated by a general or special order by the Central Government / State Government concerned / any other law for the time being in force;
  • delegating any / all of his powers / functions to any of the officers employed under him.

APPROVAL COMMITTEE

CONSTITUTION:

The Approval Committee is constituted by notification by the Central Government. It consists of the following members:

  • The Development Commissioner: Chairperson
  • Two Central Government Officers: Members
  • Two Central Government Officers representing the Ministry / Members Department of Revenue:
  • One Central Government Officer representing the Ministry / Department of Economic Affairs Members (Financial Services):
  • Two Officers of the State Government concerned: Members
  • A Representative of the Developer concerned: Special Invitee

POWERS AND FUNCTIONS OF APPROVAL COMMITTEE:

The Approval Committee has the following powers and functions:

  • Approval of import / procurement of goods from the Domestic Tariff Area in the Special Economic Zone for carrying on the authorized operations by a Developer;
  • Approval of Service Providers from outside India / from Domestic Tariff Area for carrying on the authorized operations by the Developer in the Special Economic Zone;
  • Monitoring the utilization of goods / services / warehousing / trading in the Special Economic Zone;
  • Approving, Modifying or Rejecting proposals for setting up Units in a Special Economic Zone;
  • Allowing, upon receipt of approval from the Board, foreign collaborations and foreign direct investments for setting up a Unit;
  • Monitoring and supervising compliance of conditions of the Letter of Approval or permission to the Developer or entrepreneur;
  • Performing other functions as entrusted by the Central Government / State Government concerned.

SPECIAL ECONOMIC ZONE AUTHORITY

CONSTITUTION:

A Special Economic Zone Authority is constituted for every Special Economic Zone by notification in the Official Gazette by the Central Government. Every Special Economic Zone Authority consists of the following members:

  • Development Commissioner of the Special Economic Zone: Chairperson
  • Nominated officers of the Central Government having knowledge of, or experience in, dealing with matters 2 Members relating to Special Economic Zones:
  • An officer of the Government of India in the Ministry / Department dealing with Commerce on matters relating 1 Member to Special Economic Zone:
  • Entrepreneurs or their nominee, nominated by the Not more than Central Government: 2 members

FUNCTIONS OF SPECIAL ECONOMIC ZONE AUTHORITY

It is the duty of each Special Economic Zone Authority to undertake appropriate measures for the development, operation and management of the Special Economic Zone for which it is constituted. To fulfill this duty, a Special Economic Zone Authority must perform the following functions:

  • Ensure the development of infrastructure in the Special Economic Zone;

    • Promote exports from the Special Economic Zone;
    • Review the functioning and performance of the Special Economic Zone;
    • Levy user or service charges or fees or rent for the use of properties belonging to the Authority;
    • Perform such other functions as may be prescribed.
 
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