APPENDIX - 16BBB

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FORM OF LEGAL AGREEMENT FOR SPECIAL ECONOMIC ZONE(SEZ) UNITS :

NOTE:

PLEASE SEE PARAGRAPH ............ OF THE Policy AND PARAGRAPH ............ OF THE HANDBOOK OF PROCEDURE (VOL-I )

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An agreement made this _____________day of ___________20_____between M/s __________________(indicate legal status i.e. company or partnership firm)_a unit in the…………………… Special Economic Zone(SEZ) having its registered office at ___________________(hereinafter referred to as “the unit” which expression shall include its successors and assigns) of the one part and the President of India acting through the Development Commissioner of …………….SEZ (hereinafter referred to as “Government” which expression shall include his successors in office and assigns) of the other part.

Whereas the Government has communicated vide Letter No. ___________dated _________to the Unit the terms and conditions for setting up a unit in accordance with the Export –Import Policy and Handbook of Procedures in …………………..SEZ and the Unit has duly accepted the said terms and conditions vide their letter No.__________dated __________.

AND WHEREAS the unit has been permitted to import/purchase indigenously plant and machinery, raw materials, components, spares and consumables free of Import / Central excise duty required for manufacture / trading of goods covered vide letter of approval No…………….dated……………

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

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1. The Unit shall achieve positive Net Foreign Exchange Earning(NFE) over a period of five years counting from the date of commencement of business/commercial production . The performance to achieve positive NFE shall be subject to annual monitoring by the Development Commissioner having jurisdiction over its activities as per the guidelines issued by the Ministry of Commerce from time to time. For the purpose of counting export performance under the scheme, exports to Nepal or Bhutan shall qualify only, if payment is received in Foreign Exchange.
   
   
2. The unit shall intimate the date of commencement of its operation within one month of such date to the concerned Development Commissioner. The unit shall maintain E-mail address regularly while working in the Zone.
   
   
3. The units shall not dispose of its production in the domestic market except in term of provisions of the Export and Import Policy.
   
   
4. The Unit shall after the commencement of its operation /export, submit to the concerned Development Commissioner quarterly performance report in the prescribed format (Appendix-16 H) within 30 days from the end of the quarter through E-mail, giving details of the imports / export / turn over effected and purchases made from and sales effected in the Domestic Tariff Area by the Unit during the period. Gem & Jewellery units would however submit quarterly reports in the prescribed format within 15 days. An annual performance report shall be submitted in the prescribed format at Annexure within a period of 45 days following the close of financial year failing which further imports and supplies in DTA will not be permitted. Annual Performance Reports shall be certified by a Chartered Accountant.
   
   
5. In the event of the Unit failing to achieve positive NFE and other terms and conditions of LOP except when the fulfillment of such conditions is prevented or delayed because of any law, order, proclamation, regulation/ordinance of the Government, the unit would be liable for penal action under the provisions of Foreign Trade (Development & Regulation) Act, 1992 and the Rules & Orders made thereunder .
   
   
6. The unit shall also be subject to the conditions stipulated and required for availing exemption from duty of Customs and excise under the relevant Customs and Excise notifications and any Customs duties/Excise duties payable to/leviable by the Government for failure to fulfill such conditions shall also, without prejudice to any other mode of recovery be recoverable in accordance with the provisions of Section 142 of Customs Act, 1962/Section II of Central excise and Salt Act, 1944 and Rules made thereunder and/or from any payment due to the unit from the Government.
   
   
7. Any order issued by the Government in this regard shall be final and binding and the Unit hereby undertakes to comply unconditionally with such an order.
   
   
8. Any Stamp Duties payable on this document or any document executed thereunder shall be borne by the Unit.

In witness whereof the common seal of _____________has been here into affixed and for and on behalf _______________has set and subscribed his hands hereinto. Common seal of the within named Unit has been affixed hereinto in the presence.

									Signature______________

of (i) Shri ___________________
___________________________

(Residential address)

Director and (ii) Shri _______________Director who have been duly authorized for the purpose by a resolution 
of the Board of Directors of the Company passed at the meeting held on ______________and who have signed 
in the presence of _________________.

1.	______________			(Name , Designation and Address)
    					(Tel. No.
			   		(E-mail Address                            )
2.	______________			(Name, Designation and Address)
					(Tel. No.
					(E-mail Address                            )

					Signed for an on behalf of the President of India

By Shri _________________________________in the presence of 

1.	____________________________(Name , Designation and Address)

2.	____________________________(Name, designation and Address)

Annexure of Appendix BBB

ANNUAL PERFORMANCE REPORT OF SEZ UNITS

PART - A 1. Name of the unit 2. LOP No. & Date 3. Item of Manufacture 4.Date of commencement of commercial production
5. Opening balance of Capital Goods : 6. Import of capital goods during the year	Rs. in lakhs	US $"000
7. CG received under Inter-Unit Transfer during the year
8. Outflow of FE on account of know how fees Total 9. Opening balance of imported RM, consumables, spares, etc. at the beginning of the year
10. RM, Consumables, spares, etc. imported during the year
11. RM, consumables, spares, transferred to other units under inter unit transfer
12. RM, consumables, spares received under inter unit transfer
13. Imported RM, Consumables, spares, etc. consumed during the year
14. Closing balance of imported RM, consumables, spares, etc at the end of the year 15. Outflow of FE on account of interest on ECB, Export commission, foreign travel, royalty/dividend payment etc Total 16. FOB value of exports 17. Supplies made under para 9.10 Total 18. TA sales- (I) Finished goods (II) Rejects (III) Waste &
19. NFE actually achieved
20. Export Performance actually achieved

Part B (as on 31.3.2001)
Authorised capital
Paid up capital
Foreign Direct Investment - (I)Approved (Since inception)       (II) Actual Inflow
NRI capital       (I)Approved (Since inception)       (II) Actual Inflow
Indian Equity
	Supervisory	Non-supervisory Total
Employment :	Male
	Female
	Total

Notes :-

1) The above information should be given separately for each Letter of Permission.

2) Figures should correspond to financial year April-March.

3) The information given in the formats should be authenticated by the authorized signatory of the unit and should be certified for its correctness by a Chartered Accountant with reference to the account records and registers maintained by the unit.

(Annexure to this appendix is substituted vide PN. No. 34(RE-01), Dt.31/8/2001.)