IN FORCE SEZ / EOU / FTWZ undated

Minutes of the 178th meeting of Approval Committee

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Minutes of the 178th Unit Approval Committee Meeting of Kandla SEZ held on 29.04.2022 at 10:00 hrs. under the Chairmanship of Shri Akash Taneja,
Development Commissioner, Kandla Special Economic Zone.

Following were present (via Video Conferencing):

Shri. Satyadeep
: Joint Development Commissioner,
Mahapatra

KASEZ.

Shri. R. H. Meena
: Additional Commissioner, Customs, Kandla,
Gandhidham-Representative of

Commissioner of Customs Kandla.

Shri. Abhishek Sharma : Joint DGFT, Office of Jt. DGFT, Rajkot.
Shri. B. D. Gupta
: Joint Commissioner of Income Tax, Rajkot.
Shri. Vincent Colaco : Assistant Commissioner, Representative of Joint Commissioner of Income Tax, Gandhidham.
Shri. Kanak P. Der : General Manager, DIC, Bhuj.

Absentees:-

Director (Banking)
SDM
I.T.

Review/Confirmation of the minutes of last meeting (177th UAC) of the Approval Committee:-

Minutes of the last meeting of Approval Committee were confirmed.

178.1 NEW UNIT APPLICATION

AGENDA ITEM NO. 178.1.1 Application for setting up of a Trading and Warehousing service activity unit in KASEZ namely M/s. Star World, Near Ran Nu Jaad, Near Tahariya Madresha, Panch Hatdi, Jamnagar – 361 001.

A proposal was submitted by M/s Star World, Jamnagar for setting up a new unit in Kandla SEZ for Trading activity & Warehousing service activity.

Shri Zamir Dosani, Authorised Representative of the firm explained their proposal. Shri Zamir stated that they propose to set up a trading and warehousing unit in KASEZ. He further stated that the Proprietor is having wholesale business in Jamnagar dealing in trading of various textile items, food products and other general products since last 10 years. He also stated that the traded goods will be exported to African countries and the annual exports will be USD 70,000-80,000.

The Approval Committee after due deliberation decided to approve the proposal for trading activity and warehousing service activity except items at Sr. Nos. 11 to 13 of the Agenda from trading activity and items at Sr. Nos. 2 & 12 of the Agenda from warehousing service activity. This approval is subject to the applicant furnishing documents supporting source of funds/financial strength/net worth of the Proprietor, verification of the registered office address (given as ‘Near Rann Nu Jaad, Near Tahariya Madersha, Panch Hatdi Jamnagar) & KYC of their clients on whose behalf they will warehouse the goods and also subject to standard terms and conditions: -

import/export of any items will apply unless specifically permitted by the UAC. iii) Further, with respect to traded item at S. no. 1 of the agenda, 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) The items falling under Chapter 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). v) 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.
vi) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.
vii) 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.
viii) Further, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. ix) Further, the applicant will give an undertaking that none of the 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. 178.1.2 Application for setting up of a Trading and Warehousing service activity unit in KASEZ namely M/s. Summit (India) Water Treatment and Services Ltd. (Unit – II), Shed No. 188, Sector – I, Kandla Special Economic Zone, Gandhidham – 370 230.

A proposal was submitted by M/s Summit (India) Water Treatment and Services Ltd. (Unit – II), KASEZ, Gandhidham for setting up a unit in Kandla SEZ for trading activity and warehousing service activity.

Shri Manpreet Singh, Authorised Representative of the company explained their proposal. Shri Manpreet explained that they are in KASEZ since 1997 for manufacturing activity of water treatment chemicals but now the said activity has come to a standstill and to utilize the existing infrastructure they want to set up a trading and warehousing service

business in their existing premises in KASEZ. He further stated that they have good contacts in international market for trading and warehousing goods.

Further, with respect to traded item viz. Marble slabs & Calcium Carbonate, Shri Manpreet stated that the marble slabs will be imported from Italy & Turkey and the same will be exported to Vietnam & China and Calcium Carbonate will be imported from the Middle East.

proposal for trading activity except item at Sr. No. 03 of the Agenda and warehousing service activity subject to furnishing documents supporting source of funds/financial strength/net worth of all 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 to warehouse and submit KYC details of clients to the Office of the Development Commissioner before undertaking the authorised warehousing activity.
ii) allowed to be warehoused / traded and any restrictions on import/export of any items will apply unless specifically permitted by the UAC.
iii) iv) v) 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.
vi) vii) 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. 178.1.3 Application for setting up of a Warehousing Service activity unit in KASEZ namely M/s. Palmon Exports KASEZ (Unit-III), A-II, Shed No. 186-187, Sector-I, Kandla Special Economic Zone.

A proposal was submitted by M/s Palmon Exports KASEZ (Unit-III), KASEZ, Gandhidham for setting up a unit in Kandla SEZ for warehousing activity.

Shri Mukesh Joshi, Partner of the firm explained their proposal. Shri Joshi explained that they are already having existing unit in KASEZ for manufacturing and trading activity & also warehousing service activity unit. He further stated that as their existing warehousing service LoA has lapsed, they want to set up a new warehousing service unit in KASEZ.

The Committee noted that earlier, the unit had been issued LoA for warehousing activity on 18.04.2016 and for that, SCN has been issued to the unit for non-fulfillment of the conditions of the LOA and for conducting un-authorised activity of import/clearing of goods even after lapse of the said LoA.

The Approval Committee after due deliberation decided to defer their proposal and the said proposal will be taken up for consideration only after the adjudication proceedings are completed.

AGENDA ITEM NO. 178.1.4 Application for setting up of a Manufacturing activity unit in KASEZ namely M/s. Mukesh Enterprises, D-248-A, GF, Street No. 10, Laxmi Nagar, Delhi-110092.

A proposal was submitted by M/s Mukesh Enterprises, Delhi for setting up a unit in Kandla SEZ for manufacturing activity.

Shri Ankit Kasera, Partner of the firm explained their proposal. Shri Ankit stated that they intend to set up a manufacturing unit of almonds kernels, walnuts kernels, pistachios, pepper powder, spices mix and garam masala in KASEZ. He further stated that they will import almonds from California, process the same and export it to Dubai and as the labour is cheap in Gujarat, they proposed to set up their manufacturing unit in KASEZ. He further stated that he has experience of 4 years in this field.

proposal for manufacturing activity subject to deletion of import item

mentioned at Sr. No. 6 of their list of raw materials and subject to the applicant furnishing documents supporting source of funds/financial strength/net worth of the Partners and also standard terms and conditions as under: -

i) Any restrictions on import/export of manufacturing items and its raw materials will apply.
ii) Further, the items proposed for manufacturing and the raw materials will not be allowed to be taken out of the Zone for job- work/sub-contracting. 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. 178.1.5 Application for setting up of a Manufacturing activity unit in KASEZ namely M/s. Creative Free Trade Warehousing Pvt. Ltd.(Unit- II), Shed No. 333 to 340, Sector-IV, Kandla Special Economic Zone, Gandhidham, Kutch-370201.

A proposal was submitted by M/s Creative Free Trade Warehousing Pvt. Ltd. (Unit- II), KASEZ, Gandhidham for setting up a unit in Kandla SEZ for manufacturing activity.

Shri Lal Advani, General Manager of the company explained their proposal. Shri Advani stated they are already in KASEZ for warehousing service activity and also their sister concern M/s. Transworld Furtichem Pvt. Ltd. is also having unit in KASEZ for manufacturing of NPK fertilizer and also trading activity. He further stated that for expansion they propose to set up a new manufacturing unit in KASEZ as Unit-II and for the proposed manufacturing activity they will utilize their existing premises allotted and further stated that out of 36,000 sq. mtrs. area, they will utilize 12,000 sq.

mtrs. for their proposed manufacturing activity. He further stated that the manufactured goods will be exported in granule form.

The Committee noted that an inquiry by GST authorities in respect of their sister concern M/s. Transworld Furtichem Pvt. Ltd., KASEZ is under progress.

The Approval Committee after due deliberation decided to defer their proposal till the above issues are resolved.

AGENDA ITEM NO. 178.1.6 Application for setting up of a Trading activity unit in KASEZ namely M/s. Booze and Brews, Plot No.59/8, Sector-1, Nearby B-Division Police Station, Oslo, Gandhidham-370201.

A proposal was submitted by M/s Booze and Brews, Gandhidham for setting up a unit in Kandla SEZ for trading activity.

Shri Shravan Bhatia, Proprietor of the firm explained their proposal. Shri Bhatia stated that they propose to set up a trading unit in KASEZ. He further stated that he is associated with the business of ship supplies and they import and supply to foreign going vessels at Ports through M/s Goyal Shipping and they import liquor from Dubai and now they propose to set up a trading unit in KASEZ for liquor and allied products for ship supply, bond supply and exports to overseas customers.

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 which 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. The approval shall also be subject to the following conditions:-

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.

178.2 REQUEST FOR BROADBANDING/ITEM ADDITION

AGENDA ITEM NO. 178.2.1 Request of M/s. Shriji Overseas, KASEZ for addition of 05 items in manufacturing activity and addition of 05 items in warehousing service activity in their existing LoA for Manufacturing activity and Warehousing Service activity.

M/s Shriji Overseas, KASEZ is an approved unit for manufacturing of Gutkha, Khaini, Zarda, Pan Masala, Chewing Tobacco & Filter Tobacco/Kaini and warehousing service activity in Kandla Special Economic Zone, Gandhidham vide LoA No. KASEZ/IA/30/2020-21 dated 09.12.2020, as amended.

The said unit has now requested for approval of 05 additional items in their manufacturing activity and 05 additional items in their warehousing service activity.

The Approval Committee after due deliberations decided to approve the proposal for 04 additional items in their manufacturing activity i.e. except item at Sr. No. 02 of the list of manufactured items and the import item at Sr. No. 06 of their list of raw materials and 05 additional items in their warehousing service activity in their existing LoA subject to the following terms and conditions:

i) Any restrictions on import/export of manufacturing items and its raw materials will apply.
ii) The approval is subject to the additional 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.
iii) allowed to be warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. iv) Further, the items proposed for manufacturing and the raw materials will not be allowed to be taken out of the Zone for job- work/sub contracting. v) vi) vii) Further, the applicant will submit separate APR for their manufacturing and warehousing service activities and will submit architectural design for earmarking of space for manufacturing and warehousing activities.
viii) ix) 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. 178.2.2 Request for addition of manufacturing activity in their existing Letter of Approval No. 07/2021-22 dated 09.07.2021 of Trading/Warehousing Service activity as amended and issued to M/s Bhanji Govindji & Co., KASEZ

M/s. Bhanji Govindji & Company is an approved unit for trading and warehousing activity in KASEZ. The unit has been granted Letter of Approval No. 07/2021-22 dated 09.07.2021 as amended for trading and warehousing activity.

The said unit has now requested for addition of manufacturing activity in their existing LoA.

Shri Anand Mehta, Authorised Representative of the firm explained their proposal. Shri Mehta stated that they want to broad-band manufacturing activity in their existing LoA for trading and warehousing.

proposal for addition of manufacturing activity of 06 items i.e. except item at Sr. No. 5 in the list of finished goods and excluding Sr. No. 6 & 8 from the list of raw materials 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) Further, the items proposed for manufacturing and the raw materials will not be allowed to be taken out of the Zone for Job-work/sub contracting. iii) iv) v) The above permission is also subject to further condition that the unit shall maintain separate accounts for Manufacturing, trading and warehousing activity and earmark separate space for all their activities.
vi) Further, the unit will submit separate APRs for all of their Manufacturing, 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. 178.2.3 Addition of warehousing service activity in their existing LoA No. 8/29/81-FTZ dated 18.06.1981 issued to M/s. Expo Packaging, KASEZ.

M/s Expo Packaging, KASEZ is an approved unit with LoA No. 08/29/81-FTZ dated 18.06.1981, for manufacturing and Trading activity subject to certain terms and conditions enumerated in the aforesaid Letter of Approval, as amended.

The said unit has now requested for addition of Warehousing activity in their existing LoA of manufacturing/trading service activity.

addition of warehousing service activity in their existing LoA subject to standard terms and conditions: -

vii) Further, the applicant will maintain separate stock register for trading and warehousing which will be subject to regular checking by the KASEZ customs authorities. viii) ix) 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.

AGENDA ITEM NO. 178.2.4 Addition of items in Trading Activity in their existing LoA– Request of M/s. ITM Safety Private Limited, KASEZ.

M/s. ITM Safety Private Limited, KASEZ is an approved unit with LoA No. 029/2010-11 dated 30.11.2010, for Manufacturing activity & Trading activity subject to certain terms and conditions enumerated in the aforesaid Letter of Approval, as amended.

The unit has now requested for permission of export of T-Shirts under their trading activity.

proposal of additional 01 item in their trading activity 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) iii) iv)

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. 178.2.5 Addition of items under Trading Activity and allowing DTA sale of said items – Request of M/s. Palmon Exports, KASEZ.

M/s Palmon Exports, KASEZ is an approved unit with LoA No. 09/2018-19 dated 30.08.2018 for Trading activity subject to certain terms and conditions enumerated in the aforesaid Letter of Approval. The unit has submitted documents regarding the Commencement of authorized operation which is under process.

The proposal of the unit i.e. M/s Palmon Exports for setting up a unit for trading activity was discussed in the 133rd UAC meeting held on 16.08.2018. The Committee at the time of consideration of the Unit’s proposal noted that these items are largely sensitive items of textile & electronics. Therefore, the Approval Committee after due deliberation approved the proposal subject to export and no DTA sale shall be permitted.

The unit has made a representation for reconsideration of “No DTA Sale” condition as imposed in the LoA. The proposal of the unit for allowing of DTA sale was taken up for consideration in 177th UAC meeting held on 29.03.2022, wherein the Committee after due deliberation decided to reject the proposal of the unit.

Now the unit has requested for addition of 14 items under the trading activity with DTA sale permission for these additional items.

Shri Mukesh Joshi, Partner of the firm explained their proposal. Shri Joshi explained that they want addition of some items in their trading activity for which they have orders.

addition of items in trading activity except item at Sr. No. 7 of the Agenda in their existing LoA 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) allowed to be traded and any restrictions on import/export of any items will apply unless specifically permitted by the UAC.
iii) Further, second hand/used items will not be permitted/allowed to be traded.
iv) 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.
v) vi) Further, DTA Sale of 13 items as permitted in the UAC will be allowed only. vii) viii) 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.

AGENDA ITEM NO. 178.2.6 Request for addition of item in Trading activity in their existing Letter of Approval No. KASEZ/IA/026/2006-07 dated 12.12.2006 for manufacturing activity, as amended issued to M/s Royal Petro Specialities Private Limited, KASEZ

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. vide LoA No. F. No. KASEZ/IA/026/2006-07 dated 12.12.2006 as amended from time to time. Their LoA was broad- banded for addition of trading activity of 2 items vide this office letter dated 28.12.2021.

The Committee noted that their proposal for addition of one item in Trading activity was taken up in the 177th UAC meeting held on 29.03.2022 and the Committee decided to defer their proposal with directions to examine the imports made by the two units after grant of LoA and the export to DTA clearance ratio in respect of the unit.

Now, the said unit has submitted details of imports, exports and DTA sale figures of both their units.

The Committee further noted that the item proposed by the unit is a highly inflammable and sensitive item and requires further examination with regard to in-flammability and storage conditions.

Therefore, the Approval Committee after due deliberation decided to defer their proposal for further examination.

AGENDA ITEM NO. 178.2.7

Subject: - Request for broad banding/addition of manufacturing activity

in their existing Letter of Approval No. KASEZ/IA/35/2020-21 dated 02.02.2021for Trading activity and Warehousing activity, as amended issued to M/s. United Safeway India Pvt. Ltd., KASEZ.

M/s. United Safeway India Pvt. Ltd., KASEZ is an approved unit for Trading and Warehousing service activity in Kandla Special Economic Zone vide Letter of Approval No. KASEZ/IA/35/2020-21 dated 02.02.2021, as amended.

The said unit has now requested for broad-banding/addition of manufacturing activity in their existing LoA for Trading activity and Warehousing activity.

Shri Balaji Naidu, Director of the company explained their proposal. Shri Naidu stated that they are having trading and warehousing unit in KASEZ and now they want to broad-band manufacturing activity also in their existing LoA. He further stated that they will procure salt in bulk from local market and the finished product in consumer packs will be exported.

The Committee asked the Director of the company as to why the manufactured goods and the raw material proposed viz. Refined Free Flow Iodised Salt are one and the same. In this regard, Shri Naidu explained that they will procure salt from the local market which will be then processed and packed in pouches and then exported. Hence, the raw material and the finished product have been stated as the same.

The Approval Committee after due deliberation decided to amend the description of export item no. 2 to ‘Refined free flow iodized salt in packaged

form’ and approve the addition of manufacturing activity of two 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) iii) The above permission is also subject to further condition that the unit shall maintain separate accounts for manufacturing, trading and warehousing service activity and earmark separate space for all the activities.
iv) Further, the applicant will submit separate APRs for their manufacturing, trading and warehousing service activities.
v) Further, the applicant will maintain separate stock register for trading and warehousing which will be subject to regular checking by the KASEZ customs authorities. vi) vii) items proposed are falling under negative list or are hazardous or require environmental clearance for storage/transmission/ viii) Further, the applicant will give a declaration that they will procure salt from local market only and no import is envisaged.

AGENDA ITEM NO. 178.2.8 Addition of one new item in their LoA for Trading and Warehousing Service Activity – Request of M/s. United Safeway India Pvt. Ltd., KASEZ.

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

Shri Balaji Naidu, Director of the company explained their proposal. Shri Naidu stated that they wish to add one item for trading and

warehousing activity in their existing LoA. He further stated that the said item will be imported and the same is being used for oil drilling purpose.

proposal of addition of one item for trading activity and warehousing service activity in their existing LoA subject to the following terms and conditions:

i) The approval is subject to the additional 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) allowed to be traded/warehoused 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. iii) 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.
iv) v) vi) 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.

AGENDA ITEM NO. 178.2.9 Addition of warehousing service activity in their existing LoA No. KASEZ/IA/017/2005-06 dated 03.08.2005 issued to M/s. Amrit Plastochem Pvt. Ltd., KASEZ and permission for warehouse goods on behalf of their DTA/Foreign Clients.

M/s Amrit Plastochem Pvt. Ltd., KASEZ is an approved unit with LoA No. KASEZ/IA/017/2005-06 dated 03.08.2005, for manufacturing and Trading activity subject to certain terms and conditions enumerated in the aforesaid Letter of Approval, as amended.

The said unit has now requested for addition of Warehousing activity in their existing LoA of manufacturing/trading service activity.

addition of warehousing service activity in their existing LoA 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) 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.
iv) v) The above permission is also subject to further condition that the unit shall maintain separate accounts for manufacturing, trading and warehousing service activity and earmark separate space for all the activities.
vi) Further, the applicant will submit separate APRs for their manufacturing, trading and warehousing service activities.
vii) Further, the applicant will maintain separate stock register for trading and warehousing which will be subject to regular checking by the KASEZ customs authorities. viii) ix) 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.

178.3 MISCELLANEOUS ITEMS

AGENDA ITEM NO. 178.3.1 Intimation for change in constitution from Proprietorship to Partnership of M/s Isha Impex, KASEZ

M/s. Isha Impex is an approved unit for trading and warehousing activity in KASEZ. The unit has been granted Letter of Approval No. 21/2020-21 dated 06.11.2020, as amended.

Now the said unit has intimated regarding change in constitution from proprietorship to partnership and have submitted copy of notarized partnership deed dated 01.02.2022 alongwith their application wherein two new Partners have been inducted along with the existing proprietor. The unit has also submitted copy of Form-G issued from Registrar of Firms, Kachchh District, Gandhidham regarding constitution of partnership firm.

The Committee noted that Department of Commerce vide Instruction No. 109 dated 18.10.2021 has issued guidelines regarding change of name, change of shareholding pattern, business transfer arrangements, court approved mergers and demergers, change of constitution, change of Directors, etc. may be undertaken by the Unit Approval Committee (UAC).

Therefore, the Approval Committee after due deliberation decided to take on record the proposal of change in constitution from proprietorship firm to Partnership firm subject to fulfilment of conditions as stipulated vide Instruction No. 109 dated 18.10.2021.

The Committee also directed to forward the case of change in Constitution to the Income Tax Department for necessary action at their end.

AGENDA ITEM NO. 178.3.2

Subject:- Intimation of change in Registered Address of the Firm M/s.

Oswal Extrusion Limited, KASEZ.

M/s Oswal Extrusion Limited, KASEZ is an approved unit for manufacturing activity for Jumbo/Big Bags, Tarpaulin, Tablet Salt/softening salt, Gold jewellery, Garbage bags, Granules, Processing of sesame seeds, PP/HDPE Woven Laminated fabrics, PP/HDPE Woven un- laminated fabrics & Trading activity (exports) of PP Bags/Sacks, Garbage Bags, LDPE/LLDPE films, Tarpaulin, HDPE Woven sacks and all plastic

products for exports, castor Oil and has been issued Letter of Approval No. KASEZ/IA/32/2004-05 dated 04.03.2005 as amended.

Now the said unit has intimated regarding change in address of their registered office.

The Committee noted that the details of Units old registered office address and New registered office address are as under: -

Old Address New address H.B. Jirawalal House, 13, Nav Bharat Soc., Opp. Panchshil Bus stop, Usmanpura, Ahmedabad- 380013. 204 A Eternia Complex, Behind City Centre, Above Indian Bank, Princess lane, C.G Road, Navrangpura, Ahmedabad-380009, India.

Therefore, the Approval Committee after due deliberation decided to take on record the proposal of change in Registered Office address of the company subject to fulfilment of conditions as stipulated vide Instruction No. 109 dated 18.10.2021.

The Committee also directed to forward the case of change in Name/Constitution to the Income Tax Department for necessary action at their end.

AGENDA ITEM NO. 178.3.3 Intimation of change in Partnership deed of M/s. Regent Ropes, KASEZ.

M/s. Regent Ropes, is an approved unit for manufacturing, trading and warehousing activity in KASEZ. The unit have been granted Letter of Approval F.No. KASEZ/IA/1868/2001-02/7001 dated 22.01.2002, as amended.

Now, the said unit has intimated regarding change in their partnership firm and intimated that one of their partner has retired from the firm and two new Partners has joined the firm and submitted copy of Form-

G issued from Registrar of Firms, Kachchh District, Gandhidham regarding change in partnership deed.

Therefore, the Approval Committee after due deliberation decided to take on record the proposal of change in partners of the firm subject to fulfilment of conditions as stipulated vide Instruction No. 109 dated 18.10.2021.

The Committee also directed to forward the case of change in Name/Constitution to the Income Tax Department for necessary action at their end.

AGENDA ITEM NO. 178.3.4 Permission to warehouse goods on behalf of DTA/Foreign client – Request of M/s. Bhanji Govindji & Company, KASEZ.

The Committee noted that M/s. Bhanji Govindji & Company has requested for permission to warehouse 01 additional item on behalf of Foreign/DTA clients.

Shri Anand Mehta, Authorised Representative of the firm explained their proposal. Shri Mehta stated that they want to add 01 item in their warehousing activity.

The Committee after due deliberation decided to permit the additional 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 falls under negative list or is hazardous or requires environmental clearance for storage/transmission/

AGENDA ITEM NO. 178.3.5 Permission to warehouse goods on behalf of DTA/Foreign client – Request of M/s. Flamingo Logistics, KASEZ.

The Committee noted that M/s. Flamingo Logistics has requested for permission to warehouse 03 additional items to be warehoused in KASEZ on behalf of DTA/Foreign clients.

The Committee after due deliberation decided to permit the items to be warehoused by the unit on behalf of DTA/Foreign clients as submitted by the unit. This permission is also subject to the unit fulfilling NFE criteria 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/

AGENDA ITEM NO. 178.3.6 Permission to warehouse goods on behalf of DTA/Foreign client – Request of M/s. Isha Impex, KASEZ.

The Committee noted that M/s. Isha Impex has requested for permission to warehouse 11 additional items to be warehoused in KASEZ on behalf of DTA/Foreign clients.

Shri Mayur Vyas, 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 additional items to be warehoused by the above unit except items at Sr. No. 10 & 11 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 are falling under negative list or are hazardous or require environmental clearance for storage/transmission/

AGENDA ITEM NO. 178.3.7 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 4 additional items on behalf of DTA/Foreign clients.

The Committee after due deliberation decided to permit the items to be warehoused by the above unit on behalf of DTA/Foreign clients as submitted by the unit and submission of KYC of their clients and subject to the unit fulfilling NFE criteria 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. 178.3.8 Permission to warehouse goods on behalf of Overseas/ DTA client – Request of M/s. Naman Marketing, KASEZ.

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

Shri Goda Prabhakar, Authorised Representative of the firm explained their proposal. Shri Prabhakar stated that they want to add 01 item in their

warehousing activity. He further stated that the Soda Ash will be for industrial use for soap manufacturing which will be procured from China and will be sold to Delhi based customer.

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

i) ii) Further, second hand/used electronic items/Machinery will not be permitted/allowed to be warehoused. 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/

AGENDA ITEM NO. 178.3.9 Permission to warehouse goods on behalf of DTA client/Foreign Client - Request of M/s. Stash Barn Enterprises, KASEZ.

The Committee noted that M/s. Stash Barn Enterprises has requested for permission to warehouse 11 additional items to be warehoused in KASEZ on behalf of DTA/Foreign clients.

Shri Virchand Maheshwari, Authorised Representative 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 items at Sr. No. 6, 7 & 8 of the Agenda on behalf of DTA/Foreign clients as submitted by the unit and submission of KYC of their clients and subject to the unit fulfilling NFE criteria and also subject to following conditions:

AGENDA ITEM NO. 178.3.10

Permission to warehouse goods on behalf of DTA/Foreign Clients - Request of M/s. Shri Khatushyam Tradelinks, a unit for warehousing service and trading activity, KASEZ.

The Committee noted that M/s. Shri Khatushyam Tradelinks has requested for permission to warehouse 01 additional item on behalf of Foreign/DTA clients.

The Committee further noted that the item proposed to be warehoused is a restricted item subject to import policy conditions of DGFT.

Therefore, the Approval Committee after due deliberation decided to reject their proposal.

AGENDA ITEM NO. 178.3.11 Permission to warehouse goods on behalf of DTA/Foreign client – Request of M/s. Unicorn Multimode Logistics, KASEZ.

The Committee noted that M/s. Unicorn Multimode Logistics has requested for permission to warehouse 05 items to be warehoused in KASEZ on behalf of DTA/Foreign clients.

Shri Goda Prabhakar, Proprietor of the firm explained their proposal. He stated that they propose to warehouse some items on behalf of their clients.

The Committee noted that some of the items proposed to be warehoused are falling under negative list.

The Committee after due deliberation decided to defer their proposal with direction to the unit to submit exact list of items they propose to warehouse on behalf of their clients.

AGENDA ITEM NO. 178.3.12 Monitoring of ANNUAL PERFORMANCE REPORT (APR) for the Financial Year 2019-20, as per provisions of Rule 54 of SEZ Rules, 2006

As per Rule 54 of the SEZ Rules, 2006, the performance of the units shall be monitored by the Approval Committee as per the guidelines given under Annexure appended to these rules.

The Committee perused the status, in respect of 265 units placed before them. The Committee noted out of 265 working units, 244 units have submitted APRs and 21 units have not submitted APRs for the year 2019- 20. Further, out of 244 units who have submitted APRs, 27 units have failed to achieve positive Net Foreign Exchange Earnings and out of 27 units who have failed to achieve positive NFE, 18 units have failed to achieve positive NFE in their 1st& 2nd year of their 5 year block period; 7 units have failed to achieve positive NFE in 3rd and 4th year of their 5 year block period and 2 units have failed to achieve positive NFE in 5th year of their 5 year block period.

The Committee noted that in respect of the NFE negative cases at the end of 5th year of their 5 year block period that SCN have already been issued in respect of 1 out of the 2 units and adjudication has also been

completed. The Committee also noted that in respect of the NFE negative cases at the end of 3rd & 4th year of their 5 year block period, in respect of 1 unit the SCN has already been issued at the end of 5th year i.e. 2020-21 and adjudication has also been completed and in respect of 1 unit the unit has achieved positive NFE at the end of 5th year. Hence, the Committee decided to issue SCN to only 5 units who have failed to achieve positive NFE in 3rd & 4th year of their 5 year block period.

After due deliberation, the Approval Committee directed the DC’s office to take following actions as under: -

To issue SCN to the unit(s) who failed to achieve positive NFE in 5th year of their 5 year block period.
To issue SCN to 5 units who have failed to achieve positive NFE in 3rd & 4th year of their 5 year block period.
To place the 18 units who failed to achieve positive NFE in their 1st & 2nd year of their 5 year block period under the watch list as per monitoring guidelines.
UAC decided that non-submission of APRs despite repeated reminder even after lapse of more than one year beyond the time period of submission of APRs is violation of BLUT condition and also of Rule 22 of SEZ Rules, 2006. Therefore, UAC decided to issue SCN to these 21 erring units for imposition of penalty under FT (D&R) Act, 1992 read with Rule 54 of SEZ Rules, 2006.
The Committee directed to seek clarification from the 65 units in whose APRs discrepancies (excluding worn clothing and plastic recycling units wherein the block period has been changed) were pointed out by the Auditor and if written comments are not received within 2 weeks from the issue of clarification letters to the units, SCN may be issued to them. Further, on receipt of written comments from these units, their APRs should be re-scrutinised to ensure the aspect of NFE achievement is complied and their consolidated reports may be put up in the Approval Committee meeting for discussion.

SUPPLEMENTARY AGENDA ITEM NO. 178.4.1 Request for broad banding/addition of manufacturing activity in their existing Letter of Approval No. KASEZ/IA/1953/2003-04 dated 03.09.2003 for Trading activity and Warehousing activity, as amended issued to M/s. Shanlok International, KASEZ.

M/s. Shanlok International, KASEZ is an approved unit for trading activity of all items except prohibited, canalized & restricted items, plastic waste/scrap, second hand clothing, metal scrap, polyester yarn, polyester fabric, battery scrap as per HBP, as amended and warehousing activity vide Letter of Approval F.No. KASEZ/IA/1953/2003-04 dated 03.09.2003, as amended.

The said unit has now requested for broad-banding/addition of manufacturing activity in their existing LoA for Trading activity and Warehousing activity.

Shri. Gaurav Gadodia, Partner of the firm explained their proposal. Shri. Gadodia stated that they are having trading and warehousing unit in KASEZ and now they want to include manufacturing activity also in their existing LoA. He further stated that they are having another unit in the name of M/s. Lotus Recyclers which is engaged in worn/used clothing reprocessing. He further stated that the raw materials i.e. rags in completely mutilated form required in their manufacturing process will be procured from their sister concern unit M/s. Lotus Recyclers and other worn/used clothing units of KASEZ and they will neither import nor procure any raw materials from DTA for their proposed project.

addition of manufacturing activity of one item 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) iii) Further, the applicant will not be allowed to import any raw materials for the proposed manufacturing activity and the raw materials will only be procured from their own sister concern unit and other worn/used clothing units of KASEZ.

iv) Further, purchase of raw material on intra-zone basis will not be counted towards physical export of the supplying unit. v) vi) The above permission is also subject to further condition that the unit shall maintain separate accounts for manufacturing, trading and warehousing service activity and earmark separate space for all the activities.
vii) Further, the applicant will submit separate APRs for their manufacturing, trading and warehousing service activities.
viii) Further, the applicant will maintain separate stock register for trading and warehousing which will be subject to regular checking by the KASEZ customs authorities. ix) x) 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.

SUPPLEMENTARY AGENDA ITEM NO. 178.4.2 Permission to warehouse goods on behalf of DTA client/Foreign Client - Request of M/s. Shanlok International, KASEZ.

The Committee noted that M/s. Shanlok International has requested for permission to warehouse 09 additional items to be warehoused in KASEZ on behalf of DTA/Foreign clients.

Shri Gaurav Gadodia, 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 on behalf of DTA/Foreign clients as submitted by the unit subject to submission of specific details of the items proposed to be warehoused, the unit fulfilling NFE criteria and submission of KYC of their clients and also subject to following conditions: -

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/

TABLE AGENDA ITEM NO. 178.5.1 Request of M/s Lohadia Warehousing Company, KASEZ for warehousing of worn used clothes and plastic scrap in their existing LOA No. KASEZ/IA/024/2010-11 dated 25.10.2010, as amended vide Letter No. KASEZ/ IA/024/2010-11 dated 23.03.2018.

M/s Lohadia Warehousing Company, KASEZ is an approved unit for Warehousing service activity in Kandla Special Economic Zone, Gandhidham vide LoA No. KASEZ/IA/024/2010-11 dated 25.10.2010, as amended. The LoA of the unit is valid till 30.04.2022. The unit vide letter dated 21.04.2022 has requested for renewal of their LoA and also for waiver of additional condition of not allowing them to warehouse “worn used clothes & plastic scrap” imposed at the time of renewal of their LoA in 2018.

The Committee noted that a SCN No. KASEZ/IA/024/2010-11 dated 02.12.2016 has been issued to the unit for violation of terms & conditions of the LoA with regard to storage of “worn & used clothing” and the said SCN is pending for adjudication.

The Approval Committee after due deliberation decided to defer their request and directed that the matter be taken up for a decision before the Approval Committee only after the adjudication process is completed.

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 a vote of thanks to the Chair.

      (Akash Taneja)

Development Commissioner Kandla Special Economic Zone

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