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DGFT Hand Book of Procedures HB Vol.1 ( upto 31/03/2002) Para 9-A.7

9-A.7

For setting up a unit in an SEZ, three copies of the application in the form given in Appendix-16/16.A of the Handbook (Vol. I) may be submitted to the Development Commissioner (DC) of the SEZ concerned.

Proposals for setting up units in SEZ other than those requiring industrial licence may be granted approval by the Development Commissioner within 15 days.

Proposals for setting up units in SEZ requiring industrial licence may be granted approval by the Development Commissioner after clearance of the proposal by the SEZ Board of Approval and Department of Industrial Policy and Promotion within 45 days.
Letter of permission (LOP)/Letter of Intent (LOI) issued to SEZ units by the Development Commissioner would be construed as a licence for all purposes, including for procurement of raw material and consumables either directly or through canalising agency.

The LOP/LOI shall specify the items of manufacture/service activity, annual capacity, projected annual export for the first five years in dollar terms, Net Foreign Exchange Earnings (NFE), limitations, if any, regarding sale of finished goods, by-products and rejects in the DTA and such other matter as may be necessary and also impose such conditions as may be required.

In case of any change in approved activity or undertaking any new activity by SEZ units, the Development Commissioner shall issue amended LOP within six days on receiving intimation from the unit.

Standard format for LOP/LOI for SEZ units is given in Appendix 16-DDD of the Handbook (Vol. I).
On completion of five years approval period, it shall be open to the unit to continue under the scheme or opt out of the scheme. Where the unit opts to continue, the DC concerned will extend the approval.

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