Minutes of the 175th meeting of Approval Committee

Minutes of the 175th Unit Approval Committee Meeting of Kandla SEZ held on 22.02.2022 at 10:00 hrs. under the Chairmanship of Shri Akash Taneja,
Development Commissioner, Kandla Special Economic Zone.

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Following were present (via Video Conferencing):

1. Shri. Satyadeep
   : Joint Development Commissioner,
   Mahapatra

KASEZ.

2. Shri. V. J. Boricha : Additional Commissioner of Income Tax, Rajkot.

3. Shri. Ranjeet Kumar : Assistant Commissioner, Customs, Kandla,
   Gandhidham-Representative of

Commissioner of Customs Kandla.

4. Shri. Kanak P. Der : General Manager, DIC, Bhuj.

Absentees:-

1. Director (Banking)
2. SDM
3. Jt. DGFT

175.I
Review/Confirmation of the minutes of last meeting (174th
UAC) of the Approval Committee:-

Minutes of the last meeting of Approval Committee were confirmed.

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175.1 NEW UNIT APPLICATION

AGENDA ITEM NO. 175.1.1 Application for setting up of a Warehousing unit in KASEZ namely M/s. Zalani Paper Mart (Unit - II), 47, Dadyseth Agyari Lane, Kalbadevi, Mumbai – 400 002.

A proposal was submitted by M/s Zalani Paper Mart (Unit - II), KASEZ, Gandhidham for setting up a unit in Kandla SEZ for warehousing service activity.

Shri Anand Mehta, Authorised Representative of the company explained their proposal. Shri Mehta explained that they are already in KASEZ since 2008 for manufacturing activity and to further expand their activity they want to set up a warehousing service activity in KASEZ. He further stated that for the proposed warehousing activity they will use their existing infrastructure viz. Plot No. 450, Sector – IV, KASEZ and no additional space will be required for their proposed project.

The Approval Committee after due deliberation decided to approve the proposal for warehousing service activity subject to standard terms and conditions: -

i) The approval is subject to the condition that the applicant should seek a prior approval of any additional items they intend to warehouse and submit KYC details of clients to the Office of the Development Commissioner before undertaking the authorised warehousing activity.
ii) None of the items which are restricted or prohibited will be allowed to be warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC.
iii) Further, with respect to warehoused items viz. Paper products, the KASEZ Customs will draw the samples at the time of import and export of each consignment which will be sent for analysis of GSM and other aspects. iv) In case of any discrepancy/mismatch between the ‘Description of Goods’ as provided by the Unit & ‘Description of goods as per DGFT Import Policy’, the later will prevail.
v) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.
vi) Further, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. vii) Further, the applicant will give an undertaking that none of the items proposed are falling under negative list and are not

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hazardous or require environmental clearance for storage/ transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 175.1.2 Application for setting up of a Warehousing unit in KASEZ namely M/s. Shreeji Polymers (Unit - II), Plot No. 8A, Sector – II, Kandla Special Economic Zone, Gandhidham – Kutch – 370 230.

A proposal was submitted by M/s Shreeji Polymers (Unit - II), KASEZ, Gandhidham for setting up a unit in Kandla SEZ for warehousing service activity.

Shri Anand Mehta, Authorised Representative of the company explained their proposal. Shri Mehta explained that they are already in KASEZ since 1998 for manufacturing activity of plastic scrap/waste and now they want to set up a warehousing service activity in KASEZ. He further stated that for the proposed warehousing activity they will use their existing Plot No. 269-A, Sector – IV, KASEZ admeasuring about 8,000 sq. mtrs. for their proposed project.

proposal for warehousing service activity subject to standard terms and conditions: -

i) The approval is subject to the condition that the applicant should seek a prior approval of any additional items they intend to warehouse and submit KYC details of clients to the Office of the Development Commissioner before undertaking the authorised warehousing activity.
ii) iii) The items falling under Chapter 72 & 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). iv) v) vi)

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vii) items proposed are falling under negative list and are not hazardous or require environmental clearance for storage/ transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 175.1.3 Application for setting up of a Manufacturing unit in KASEZ namely M/s. Tesla Smart Automation Solutions, Plot No. 32 & 33, Ward 7/A, Gandhidham – Kutch – 370 201.

A proposal was submitted by M/s Tesla Smart Automation Solutions, Gandhidham for setting up a unit in Kandla SEZ for manufacturing activity.

Shri Harmeet Singh Kohli, Proprietor of the firm explained their proposal. Shri Kohli stated he has several units already operating in KASEZ and they are operating in the reprocessing of worn/used clothing, warehousing and reconditioning/reengineering and now he further wants to expand his business in the field of manufacturing of automation equipment related to recycling industry, container home/office, etc. He further stated that for the proposed manufacturing activity he will require around 10,000 sq. mtrs. of open plot.

The Committee asked the proprietor of the unit whether the name of the company proposed by them will lead to any trademark issue. Shri Kohli stated that the name proposed viz. “Tesla” is a generic name i.e. surname and there will be no issue of trademark in the name proposed by them for their proposed project. Further, he informed that he has also taken legal advice in respect of the possible trademark issue and after consultation, he has opted for the said name.

The Committee further queried from Shri Kohli regarding the sourcing of technology for his proposed project. In this regard, Shri Kohli explained that he has his in-house R&D team consisting of engineers from IITs.

proposal for manufacturing activity subject to standard terms and conditions: -

i) Any restrictions on import/export of manufacturing items and its raw materials will apply.
ii) The items falling under Chapter 72 & 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS).

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iii) iv) v) vi) items proposed and its raw materials are falling under negative list and are hazardous or require environmental clearance for storage/transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 175.1.4 Application for setting up of a Trading and Warehousing service activity unit namely M/s. Righttime Impex Private Limited at Kandla Special Economic Zone, Gandhidham, Kutch-370201.

A proposal was submitted by M/s Righttime Impex Private Limited, Delhi for setting up a unit in Kandla SEZ for trading and warehousing service activity.

Shri Anoop Kumar, Authorised Representative of the company explained their proposal. Shri Kumar stated that they propose to set up a trading and warehousing unit in KASEZ. He further stated that the Directors of the company have experience and expertise in the import and export business and as regards their proposed trading activity they will export the traded goods to Gulf, Middle East, etc. Shri Kumar mentioned that ready infrastructure is available in KASEZ and also two major Ports located nearby at Mundra and Kandla will suit their requirement of setting up trading and warehousing unit in KASEZ. He further stated that the source for financing the proposed project will be personal fund of Directors and if need be they will obtain loan from bank.

proposal for warehousing service activity except item at Sr. No. 10 & 12 of the Agenda and trading activity except item at Sr. No. 04 & 07 of the Agenda subject to furnishing documents supporting source of funds/financial strength/net worth of both the Directors and also subject to standard terms and conditions: -

i) The approval is subject to the condition that the applicant should seek a prior approval of any additional items they intend

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to warehouse and submit KYC details of clients to the Office of the Development Commissioner before undertaking the authorised warehousing activity.
ii) iii) Further, with respect to traded item viz. Paper, the KASEZ Customs will draw the samples at the time of import and export of each consignment which will be sent for analysis of GSM and other aspects. iv) v) vi) Further, the applicant will submit separate APR for their trading and warehousing service activities and will submit architectural design for earmarking of space for Trading and warehousing activities.
vii) viii) items proposed and its raw materials are falling under negative list and are hazardous or require environmental clearance for storage/transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 175.1.5 Application for setting up of a Trading unit in KASEZ namely M/s. Bluebird Bizglobe (OPC) Pvt. Ltd., Office No.-07, Riddhi Siddhi Arcade- II, Plot No.-40, Sector-08, Gandhidham-370201.

A proposal was submitted by M/s Bluebird Bizglobe (OPC) Pvt. Ltd., Gandhidham for setting up a unit in Kandla SEZ for trading activity.

Shri Ashukumar Jatav, Director of the company explained their proposal. Shri Jatav stated that they propose to set up a trading unit in KASEZ. He further stated that he is already having experience in the field of trading and he is already doing the business of trading of liquor and other allied products from their sister concern unit. When the Committee queried regarding the 1000 sq. Mtrs. built up area and 5000 sq. Ft. office area, he stated that this is due to a typographical error and he would correct the same subsequently.

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proposal of trading activity (subject to applicant submitting revised list of items for trading activity excluding Sr. No. 5 & 11 of the Agenda) subject to standard terms and conditions. This permission will be also subject to verification report of the Committee constituted for this purpose who will inspect the facility being created by the unit for storage of liquor and allied items with regard to hygiene, temperature control and security arrangements, etc. The approval for trading items will be granted subject to the recommendation of the Committee:-

i) allowed to be traded and any restrictions on import/export of any items will apply unless specifically permitted by the UAC.
ii) In case of any discrepancy/mismatch between the above ‘Description of Goods’ as provided by the Unit & ‘Description of goods as per DGFT Import Policy’, the later will prevail.
iii) iv) v) items proposed above are falling under negative list and are not hazardous or require environmental clearance for storage/ transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them. vi) Further, in order to ensure genuine trading business in this commodity, the Committee directed the applicant that the unit should have confirmed orders of the items within 3 months of granting of this approval. The Committee further directed that periodical review regarding functioning of the unit with regard to the above approved items may be conducted every six months as they are sensitive in nature. vii) Further, the above permission is also subject to condition that the same will be supplied to customs bonded warehouse/ Foreign Going Ship/Foreign Embassy and foreign bound vessels calling at Indian Ports & Exports and also an Affidavit that no DTA sale of any traded goods even if damaged or otherwise will be allowed and if the traded goods are found to be sold in DTA penal action will be initiated against them and will be liable for cancellation of the above approval of trading activity.

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AGENDA ITEM NO. 175.1.6 Application for setting up of a Trading unit in KASEZ namely M/s. Innovative Exim, Survey No.-172/1, 64 Bagesree Society, Meghpar Borichi, Anjar-Kachchh, Gujarat-370110.

A proposal was submitted by M/s Innovative Exim, Anjar for setting up a unit in Kandla SEZ for trading activity.

Shri Rajvardhan Jha, Proprietor of the firm explained their proposal. Shri Jha stated that they propose to set up a trading unit in KASEZ. He further stated that he is already having a unit in KASEZ in the name of M/s. Shriji Overseas engaged in warehousing and manufacturing activity. He also stated that earlier he was associated in the business of ship supplies and now they propose to set up a trading unit for liquor and allied products for embassy supply, ship supply and bond supply and will require space of 2,000 sq. mtrs. build up area for the proposed project.

proposal of trading activity subject to standard terms and conditions. This permission will be also subject to verification report of the Committee constituted for this purpose who will inspect the facility being created by the unit for storage of liquor and allied items with regard to hygiene, temperature control and security arrangements, etc. The approval for trading items will be granted subject to the recommendation of the Committee:-

i) allowed to be traded and any restrictions on import/export of any items will apply unless specifically permitted by the UAC.
ii) In case of any discrepancy/mismatch between the above ‘Description of Goods’ as provided by the Unit & ‘Description of goods as per DGFT Import Policy’, the later will prevail.
iii) iv) v) items proposed above are falling under negative list and are not hazardous or require environmental clearance for storage/ transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them. vi) Further, in order to ensure genuine trading business in this commodity, the Committee directed the applicant that the unit

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should have confirmed orders of the items within 3 months of granting of this approval. The Committee further directed that periodical review regarding functioning of the unit with regard to the above approved items may be conducted every six months as they are sensitive in nature. vii) Further, the above permission is also subject to condition that the same will be supplied to customs bonded warehouse/ Foreign Going Ship/Foreign Embassy and foreign bound vessels calling at Indian Ports & Exports and also an Affidavit that no DTA sale of any traded goods even if damaged or otherwise will be allowed and if the traded goods are found to be sold in DTA penal action will be initiated against them and will be liable for cancellation of the above approval of trading activity.

175.2 REQUEST FOR BROADBANDING/ITEM ADDITION

AGENDA ITEM NO. 175.2.1 Inclusion of Trading Activity in their existing LoA No. 16/2015-16 dated 02.02.2016 issued to M/s. Central Warehousing & Trading, KASEZ.

M/s Central Warehousing & Trading, KASEZ is an approved unit with LoA No. 16/2015-16 dated 02.02.2016 for warehousing service activity, as amended.

The said unit has now requested for addition of Trading activity in their existing LoA of warehousing service activity.

Shri Darpan Mehta, Authorised Representative of the firm explained their proposal. Shri Mehta stated that they propose to include trading activity in their existing LoA as they are having export orders of some products from foreign buyer.

addition of trading activity in their existing LoA (subject to unit furnishing 8 digit ITC HS Code of the items) subject to standard terms and conditions: -

i) allowed to be traded and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. This clause will have overriding effect for any approval granted in LoA now or before. ii)

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iii) iv) The above permission is also subject to further condition that the unit shall maintain separate accounts for trading and warehousing activity and earmark separate space for trading activity and submit map of demarcated area for trading activity.
v) Further, the unit will submit separate APRs for both of their trading and warehousing activities.
vi) vii) items proposed are falling under negative list or are hazardous or require environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 175.2.2 Addition of Trading Activity in their existing LoA- Request of M/s Hitex Healthcare Pvt. Ltd., KASEZ.

M/s. Hitex Healthcare Pvt. Ltd, KASEZ is an approved unit for manufacturing activity of Surgical Gowns/apparels etc. in Kandla Special Economic Zone, Gandhidham, vide LoA No. KASEZ/IA/020/2016-17 dated 01.03.2017, as amended.

The said unit has now requested for addition of trading activity of 01 item in their existing LoA.

The Committee noted that the unit is already in the same field for manufacturing activity of surgical gowns/apparels, etc. and now they want to include one item for trading activity in their existing LoA.

Therefore, the Approval Committee after due deliberation decided to approve the proposal for addition of trading activity of 01 item in their existing LoA subject to the following terms and conditions:

i) allowed to be traded and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. ii)

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iii) iv) The above permission is also subject to further condition that the unit shall maintain separate accounts for trading and manufacturing activity and earmark separate space for trading activity and submit map of demarcated area for trading activity.
v) Further, the unit will submit separate APRs for both of their trading and manufacturing activities.
vi) vii) items proposed are falling under negative list or are hazardous or require environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 175.2.3 Request for addition of activity under Rule 18(6) of providing packaging/blending activities to overseas entities in their existing Letter of Approval No. KASEZ/IA/07/2007-08 dated 22.06.2007 for warehousing and packaging service activities, as amended issued to M/s Vishvajoti Packaging, KASEZ

M/s. Vishvajoti Packaging, KASEZ, is an approved unit for warehousing and Packaging service activity vide Letter of Approval No. KASEZ/IA/07/2007-08 dated 22.06.2007, as amended.

The said unit has now requested for permission under Rule 18(6) for providing packaging/blending activities to their overseas entities in their existing Letter of Approval.

Shri Vivek Milak, Partner of the firm explained their proposal. Shri Milak stated that they are approved for warehousing and packaging activity of perfumery products and essential oils and now they want to include blending activities of the said products under Rule 18(6) of the SEZ Rules, 2006. He further stated that the technology, raw materials and cost will be borne by the clients and the said blending activities under Rule 18(6) of the SEZ Rules, 2006 will be undertaken in separate premises. He further stated that he has two sheds out of which he will undertake activities under Rule 18(6) in one of the sheds exclusively.

The Committee noted that the unit has requested for blending activities under Rule 18(6) of SEZ Rules, 2006 which has very specific provisions under SEZ Rules, 2006 and is separate and distinct activity and

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cannot be clubbed with normal warehousing activity under Rule 18(5). In this context, the Committee felt that the unit should make a separate application for the same.

Therefore, the Approval Committee after due deliberation decided to reject their proposal with direction to the unit to submit a separate application for setting up a new unit under Rule 18(6) of the SEZ Rules, 2006.

AGENDA ITEM NO. 175.2.4 Request for broad banding of additional 10 items in their existing manufacturing activity and addition of 07 items under trading activity- Request of M/s GKN Enterprises, KASEZ.

M/s. GKN Enterprises, KASEZ is an approved unit vide LoA No. KASEZ/IA/04/2015-16 dated 18.05.2015 for manufacturing and trading activity, as amended.

The said unit has now requested for broad banding of their manufacturing activity for 10 items and addition of 07 items under trading activity.

Shri N. Seenivasan, Proprietor of the firm explained their proposal. Shri Seenivasan explained that he is already working in KASEZ for manufacturing and trading activities of chemical items and now he wants to add some items in manufacturing and trading activity. He further stated that they have already obtained PESO certification, fire licence and solvent licence.

proposal for addition of manufacturing activity of 10 items and addition of trading activity of 07 items in their existing LoA subject to standard terms and conditions:-

i) Any restrictions on import/export of manufacturing items and its raw materials will apply.
ii) allowed to be traded and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. iii)

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iv) v) The above permission is also subject to further condition that the unit shall maintain separate accounts for Manufacturing and trading activity and earmark separate space for both the activities.
vi) Further, the unit will submit separate APRs for both of their Manufacturing and trading activities.
vii) viii) items proposed and its raw materials are falling under negative list and if the items are found in negative list, penal action will be initiated against them.

175.3 MISCELLANEOUS ITEMS

AGENDA ITEM NO. 175.3.1 Request of M/s. Royal Petro Specialities Pvt. Ltd., KASEZ for change in Directors and shareholding pattern of the company.

M/s Royal Petro Specialities Private Limited, KASEZ is an approved unit for Manufacturing Activity of Automotive and Industrial lubricants, brake fluid, petroleum jelly, open gear compound/creosote oil, pour point depressants, coolants etc. and trading activity vide LoA No. F. No. KASEZ/IA/026/2006-07 dated 12.12.2006, as amended.

Now the said unit has intimated regarding the change in Directors of the company wherein one Director have resigned and two new Directors have been appointed and submitted copy of DIR-12 containing particulars of changes among the Directors and also change in shareholding pattern of the company.

The Committee noted that the company has not submitted the details of the earlier shareholding pattern of the company and it was decided to call for the same so as to enable the Committee to decide the proposal for change in Directors and shareholding pattern of the company.

Therefore, the Approval Committee after due deliberation decided to defer their proposal for change in Directors and shareholding pattern of the company.

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AGENDA ITEM NO. 175.3.2 Request of M/s Krishna Enterprise, KASEZ for approval of items in their warehousing service activity.

The Committee noted that M/s. Krishna Enterprise has requested permission to warehouse 07 items in their unit on behalf of Foreign/DTA clients.

The Committee after due deliberation decided to permit the items to be warehoused by the above unit except item at Sr. No. 2 of the Agenda on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criteria and submission of KYC of their clients and also subject to following conditions:

i) in LoA issued now or before. ii) iii) iv) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. v) items proposed are falling under negative list or are hazardous or require environmental clearance for storage/ transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 175.3.3 Request of M/s Mahamaya Construction & Engineer, KASEZ for approval of items in their warehousing service activity.

The Committee noted that M/s. Mahamaya Construction & Engineer has requested for permission to warehouse 01 item on behalf of Foreign/DTA clients.

The Committee after due deliberation decided to permit the item to be warehoused by the above unit on behalf of DTA/Foreign clients as

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submitted by the unit subject to the unit fulfilling NFE criteria and submission of KYC of their clients and also subject to following conditions:

i) ii) Further, with respect to warehoused item permitted, the KASEZ Customs will draw the samples at the time of import and export of each consignment which will be sent for analysis of GSM and other aspects. iii) iv) v) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. vi) items proposed falls under negative list or is hazardous or requires environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 175.3.4 Permission to warehouse goods on behalf of Foreign/DTA clients – Request of M/s. Skyline Tradelink, KASEZ

The Committee noted that M/s. Skyline Tradelink has requested for permission to warehouse 23 items in KASEZ on behalf of DTA/Foreign clients. Shri Pankaj Goyal, Partner of the firm explained their proposal.

The Committee noted that the unit has submitted list of 23 items for warehousing on behalf of their clients and directed the unit to prune the list of items proposed for warehousing activity and submit a revised list of around 10-12 items which they actually propose for warehousing activity and also submit the details of inquiries/purchase order received by them for warehousing of protein concentrates.

The Committee after due deliberation decided to permit the item to be warehoused by the above unit (subject to unit submitting revised list of 10- 12 items for warehousing and details of inquiries made with their client/copy of purchase order with respect to warehousing of protein

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concentrates) on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criteria and submission of KYC of their clients and also subject to following conditions:

i) ii) The items falling under Chapter 72 & 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). iii) Further, with respect to warehoused items viz. cashewnuts the same is allowed to be warehoused subject to fulfilment of the MIP condition as prescribed under Import/Export policy.
iv) v) vi) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. vii) items proposed falls under negative list or is hazardous or requires environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 175.3.5 Permission to warehouse goods on behalf of DTA/Foreign Clients - Request of M/s. Shanky Petroleums, a unit for trading and warehousing activity, KASEZ.

The Committee noted that M/s. Shanky Petroleums has requested for permission to warehouse 21 items to be warehoused in KASEZ on behalf of DTA/Foreign clients.

Shri Karan Pandit, Authorised Representative of the firm appeared before the Committee to explain their proposal. However, due to connectivity issue at his end, he could not explain their proposal.

The Committee noted that the unit has submitted list of 21 items for warehousing on behalf of their clients and some of the items proposed are sensitive items such as bitumen, pepper, etc.

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The Committee after due deliberation decided to defer their proposal with direction to the unit to submit a pruned list of items which they actually intend to warehouse along with details of inquiries made with their clients.

AGENDA ITEM NO. 175.3.6 Permission to warehouse goods on behalf of DTA Importer/Foreign Clients-Request of M/s. Vishvajoti Packaging, a unit of Warehousing activity & Packaging service activity, KASEZ.

The Committee noted that M/s. Vishvajoti Packaging has requested for permission to warehouse 06 items to be warehoused in KASEZ on behalf of DTA/Foreign clients.

Shri Vivek Milak, Partner of the firm explained their proposal. He informed that they propose to warehouse products on behalf of their clients.

The Committee after due deliberation decided to permit the items to be warehoused by the above unit except item at Sr. No. 05 of the Agenda on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criteria and submission of KYC of their clients and also subject to following conditions:

i) ii) iii) iv) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. v) items proposed falls under negative list or is hazardous or requires environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

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AGENDA ITEM NO. 175.3.7 Permission to warehouse goods on behalf of DTA Importer/Foreign client – Request of M/s. Aum Solvchem, KASEZ.

The Committee noted that M/s. Aum Solvchem has requested for permission to warehouse 01 item on behalf of DTA/Foreign clients.

The Committee after due deliberation decided to permit the item to be warehoused by the above unit on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criteria and submission of KYC of their clients and also subject to following conditions:

i) ii) iii) iv) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. v) items proposed are falling under negative list or are hazardous or require environmental clearance for storage/ transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 175.3.8 Permission for DTA sale of Mercantile goods - Request of M/s Sujan Oil & Gas Infra Logistics, KASEZ.

M/s. Sujan Oil & Gas Infra Logistics, KASEZ is an approved unit vide Letter of Approval No. KASEZ/IA/023/2009-10 dated 22.10.2009, as amended, for warehousing activity of Oil Exploration activity related equipments. Further, their LoA was broad-banded for (1) petroleum products and chemicals vide letter dated 19.02.2010, (2) warehousing and drumming activity of M. P. Diol vide letter dated 14.03.2016, (3) trading activity of Technical/Industrial Grade Urea and all other fertilizers of Chapter 31 vide letter dated 18.04.2018 and (4) warehousing of vegetable

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origin oil/edible/non-edible oil falling under chapter-15 vide letter dated 05.08.2020.

The said unit has now requested for permission to allow them DTA sale of mercantile items.

Shri Ranbir Singh Vashistha, COO of the firm explained their proposal. He informed that they are in KASEZ for drumming operations for chemicals and petroleum products and the same are exported on behalf of their clients. However, they are not allowed DTA sale of some of the items being warehoused on behalf of their clients. He requested to permit them DTA sale of approved mercantile items so that they can utilize their existing infrastructure to the maximum.

The Committee noted that the unit has been approved for warehousing and drumming activity for chemicals and petroleum products on behalf of their clients for export purpose and Committee needs to examine the aspect as to why the condition of only exports and no DTA sale was imposed at the relevant time.

The Approval Committee after due deliberation decided to defer their proposal for further examination of the above aspects.

AGENDA ITEM NO. 175.3.9 One time permission for export of used/second hand shoes accumulated out of segregation of used & worn clothing – Request of M/s. Babu International, KASEZ.

M/s. Babu International, KASEZ is an approved unit for manufacturing of Shoddy Synthetic Yarn, Shoddy Woollen Yarn, Blankets, Synthetic Pulled Fibre, Blazer Cloth and furnishing Fabrics vide LoA No. KASEZ/IA/1922/2003-04 dated 16-06-2003, as amended from time to time.

The Committee noted that their request was taken up for consideration in the last meeting wherein the Committee decided to defer their proposal with direction to the unit to first come up with evidence of re- export with reference to their past permission granted by UAC for export of 75 MT of used shoes and as to whether the same were actually exported or not and also submit the details of the ratio of used/worn shoes accumulated as compared to the total import of worn/used clothing during the last 3 years.

The Committee further noted that the unit has submitted proof of export in r/o export of 74800 Kgs. of second hand shoes which were exported vide shipping Bill No. 4013323 dated 28.09.2020 and also the

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import data of their worn clothes for the period September 2020 to December-2021 which is around 2,52,59,594 Kgs. and informed about the accumulated stock of old/second hand shoes to be around 65 MT.

Shri Yeshu Garg, Partner of the firm explained their proposal. Shri Garg explained that the worn/second hand shoes accumulated during the last 1½-2 years is about 60-65 MT which are received along with old and used clothing.

The Committee noted that earlier the unit has requested for one time permission for export of 250 MT used/second hand shoes and now they are stating that about 60-65 MT of worn/second hand shoes accumulated. Hence, there is much difference of worn/second hand shoes accumulated.

The Approval Committee after due deliberation decided to defer their proposal with a direction that a Committee from the IA-I Section, KASEZ may ascertain the exact quantity of worn/second hand shoes lying in the premises of the unit and submit its report so that the Committee can take a decision on the request of the unit for one-time permission for export of used/second hand shoes.

AGENDA ITEM NO. 175.3.10

Ratification of Formal LoA issued to M/s. S. R. Brothers, Gandhidham.

The Approval Committee ratified the formal LoA granted to M/s. S. R. Brothers, Gandhidham by the Development Commissioner, KASEZ for warehousing service activity after deleting sensitive items i.e. Betel Nut/Areca Nut, Betelnut powder, Bitumen, Lubricants from the list of warehousing service activity as approved in in-principle LoA dated 06.04.2021.

AGENDA ITEM NO. 175.3.11 Modification in the list of items Approved to M/s Marine Time Private Limited.

The Committee noted that the proposal of M/s Marine Time Private Limited for setting up a Trading and Warehousing Service Unit for certain items was approved in the 166th UAC meeting held on 13.05.2021 and the O/o. of the Development Commissioner, KASEZ issued in-principal LoA vide letter dated 24.05.2021. The said unit has been allotted Shed No. 235, Special Type, Sector - III, Phase-I, KASEZ and the unit has now requested for issuance of formal LoA.

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The Committee perused the list of items approved by the UAC in the 166th meeting held on 13.05.2021 and noted that some of the items under both the Trading Activity and Warehousing Service Activity are sensitive in nature.

Therefore, the Committee after due deliberation decided to delete the items mentioned at Sr. Nos. 05, 18, 19, 20, 21, 22 & 29 under both the Trading Activity and Warehousing Service Activity as the same are sensitive in nature and directed that the formal LoA be issued to M/s. Marine Time Private Limited with the revised list of items. Further, the unit will not import/procure any second hand goods for trading activity and warehousing service activity.

TABLE AGENDA ITEM NO. 175.4.1 Permission to warehouse goods on behalf of DTA/Foreign client – Request of M/s. Aditya Exports, KASEZ.

The Committee noted that M/s. Aditya Exports has requested for permission to warehouse 13 items on behalf of DTA/Foreign clients.

The Committee after due deliberation decided to permit the item to be warehoused by the above unit except items at Sr. No. 01 to 05 of the Agenda on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criteria and submission of KYC of their clients and also subject to following conditions:

i) ii) The items falling under Chapter 72 & 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). iii) iv) v) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. vi) items proposed are falling under negative list or are hazardous or require environmental clearance for storage/

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transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

Further, it was brought to the notice of the Approval Committee that many units in KASEZ are commencing their activities from the open plots allotted to them without constructing the minimum infrastructure required for setting up a unit. Therefore, the Committee decided that a suitable condition may be incorporated in the Letters of Approval issued to the units that before commencement of authorised operations in KASEZ they should construct the minimum infrastructure such as shed, boundary wall and gate in their allotted plots and the Office of the Development Commissioner will ensure that the unit has constructed the minimum requirement of shed, boundary wall and gate before taking on record the commencement of authorised operation of such units.

Notwithstanding to the decisions of the Committee, if the DC Office/Approval Committee notices any instance of default in rent or
pending legal proceedings as on date of decision of the Committee or any legal proceedings that may be initiated after the decision of the Committee against the unit/firm/company and/or its Proprietor/Partner/Director, which has a bearing on the decision taken/LoA issued to the firm in any manner, the LoA granted will be liable for action, including cancellation under the FT (D&R) Act and necessary action will be taken against such units in terms of applicable provisions of law.

The meeting ended with vote of thanks of the Chair.

      (Akash Taneja) 

Development Commissioner Kandla Special Economic Zone