IN FORCE SEZ / EOU / FTWZ undated

Minutes of the 179th meeting of Approval Committee

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Minutes of the 179th Unit Approval Committee Meeting of Kandla SEZ held on 30.05.2022 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. V. J. Boricha : Additional Commissioner of Income Tax, Rajkot.
Shri. J. M. Bishnoi : Joint DGFT, Office of Jt. DGFT, Rajkot.
Shri. Kanak P. Der : General Manager, DIC, Bhuj.

Absentees:-

Director (Banking)
SDM
Kandla Customs
I

Review/Confirmation of the minutes of last meeting (178th UAC) of the Approval Committee:-

Minutes of the last meeting of Approval Committee were confirmed.

179.1 NEW UNIT APPLICATION

AGENDA ITEM NO. 179.1.1 Application for setting up of a Warehousing unit in KASEZ namely M/s. Global Hub Exim, Shop No.-217, Silver Arc, Plot No.-57, Sector-08, Gandhidham, Kachchh-370 201.

A proposal was submitted by M/s Global Hub Exim, Gandhidham for setting up a new unit in Kandla SEZ for Warehousing service activity.

Shri Vaibhav Baid, Authorised Representative of the firm explained their proposal. Shri Vaibhav stated that they propose to set up a warehousing unit in KASEZ.

The Committee asked the Authorised representative of the unit whether any of the relatives/family members have their business interest in KASEZ. Shri Baid stated that their family members possess two separate LoAs for trading and warehousing in the name of M/s. Zip Zap Exim Pvt. Ltd. Further, the Committee asked whether any offence case has been booked against the said unit. He further informed that DRI has booked a case against M/s. Zip Zap in a valuation matter in 2018 and SCN has been issued and the adjudication is pending. Further, he informed that he is co- operating with the said agency and submitting compliance as and when called for by the said investigating agency.

When asked by the Committee regarding experience of the Partners in this business, Shri Vaibhav informed that the one of the partners is already in the business of import and export and they also have IEC Code in the said business. When queried by the Committee regarding sources of income of Smt. Manjula Baid and Smt. Shalu Baid, Partners of the firm, Shri Vaibhav stated that they have income from rent and trading activity.

The Approval Committee after due deliberation decided to defer their proposal till the DRI issues with regard to their sister concern are resolved.

AGENDA ITEM NO. 179.1.2 Application for setting up of a Trading unit in KASEZ namely M/s. Kunal International, XI, 1654, Katra Bhawani Prasad, Kucha Dakhni Rai, Darya Ganj, New Delhi - 110 002.

A proposal has been submitted by M/s Kunal International, New Delhi for setting up a unit in Kandla SEZ for trading activity.

Shri Kunal Mohan, Partner of the firm explained their proposal. Shri Mohan explained that they are in business of pan masala and gutkha since the last 30 years and the original business was started by his father in 1986 as a Proprietor. He further stated that his father has expired recently and now he wishes to start his trading business of pan masala and gutkha from KASEZ.

The Committee asked as to why they wish to start trading business from KASEZ when they are based in Delhi, Shri Kunal replied that if they set up a unit in DTA they have to pay compensation cess which is around 125% and if they set up the unit in KASEZ and procure the same, they will not have to pay the compensation cess.

The Committee found that their reason for setting up a trading unit in KASEZ was not convincing and found that their financial position is quite weak as evident from Income Tax returns of the Partners for the past three years.

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

AGENDA ITEM NO. 179.1.3 Application for setting up of a Manufacturing unit in KASEZ namely M/s. Euronic Impex LLP, Office No. 15, 2nd Floor, Mohid Heights, RTO Lane, Four Bunglow, Lokhandwala, Andheri West, Mumbai-400 053.

A proposal was submitted by M/s Euronic Impex LLP, Mumbai for setting up a unit in Kandla SEZ for manufacturing activity.

Shri Kiran Singh Kochar, Authorised Representative and Shri Karan Jadiyar, Partner of the firm explained their proposal. Shri Kochar explained that the Partners have the knowledge of pan masala and gutkha business and they wish to set up a manufacturing unit in KASEZ. The partner informed that he was earlier associated with a firm dealing in pan masala and gutkha business and having 3 years’ experience. He further stated that they will export the finished goods to London, US and Europe.

When asked by the Committee regarding the inadequate financials in the ITR submitted by them the Partner replied that they have arrangements of funding the said project and it will be implemented through money borrowed from friends and relatives initially and if need be they will be approaching the banks for finance. The Committee further noted that the

applicant has submitted a list of 35 items required for manufacturing 4 products and certain items are sensitive in nature.

Therefore, the Approval Committee after due deliberation decided to defer their proposal with a direction to the applicant to submit documents supporting source of funds/financial strength/net worth of the Partners and also prune the list of their raw materials to bring it in line with the raw materials that are normally required by a Gutkha/Pan Masala unit.

AGENDA ITEM NO. 179.1.4 Application for setting up of a Manufacturing unit in KASEZ namely M/s. Logical Exim LLP, Office No. 102, 1st Floor, B Wing, Crystal Plaza, Opp. Infinity Mall, Off Link Road, Andheri West, Mumbai – 400 053.

A proposal was submitted by M/s Logical Exim LLP, Mumbai for setting up a unit in Kandla SEZ for manufacturing activity.

Shri Kiran Singh Kochar, Authorised Representative and Shri Amit Patil, Partner of the firm explained their proposal. Shri Kochar explained that the Partners have the knowledge of pan masala and gutkha business and they wish to set up a manufacturing unit in KASEZ. The partner informed that he was earlier associated with a firm dealing in pan masala and gutkha business and having 9 years’ experience. He further stated that they will export the finished goods to London, US and Europe. The Authorised Representative informed that the Partners have their own brand “Khudabaksh”.

When asked by the Committee regarding the inadequate financials in the ITR submitted by them the Partner replied that they have arrangements of funding the said project will be implemented through money borrowed from friends and relatives initially and if need be they will be approaching the banks for finance. Further, the Committee noted that the applicant has submitted a list of 35 items required for manufacturing 4 products and certain items are sensitive in nature.

AGENDA ITEM NO. 179.1.5 Application for setting up of a Trading and Warehousing unit in KASEZ namely M/s. Raj Rani International, House No. 66, Rohini Nagar, Jagatpura, Jaipur, Rajasthan – 302 017.

A proposal was submitted by M/s Raj Rani International, Jaipur for setting up a unit in Kandla SEZ for trading and warehousing activity.

Shri Anand Mehta, Authorised Representative of the firm explained their proposal. Shri Mehta stated they propose to set up a trading and warehousing unit in KASEZ.

The Committee noted that the applicant has submitted a long list of items for warehousing activity including certain restricted/sensitive items and directed the applicant to submit pruned list of items for warehousing activity.

The Approval Committee after due deliberation decided to approve the proposal for trading activity and warehousing service activity (subject to applicant submitting pruned list of warehousing items) and subject to furnishing documents supporting source of funds/financial strength/net worth of Proprietor 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) The items falling under Chapter 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). iii) 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. iv) 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. 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. 179.1.6 Application for setting up of a Warehousing unit in KASEZ namely M/s. Shivam Scrap Recycling Pvt. Ltd. (Unit - II), Plot No. 1/18, Sector – I, Kandla Special Economic Zone, Gandhidham – Kutch – 370 230.

A proposal has been submitted by M/s Shivam Scrap Recycling Pvt. Ltd. (Unit - II), KASEZ, Gandhidham for setting up a unit in Kandla SEZ for warehousing activity.

Shri Dilip Ayachi, Director of the company explained their proposal. Shri Ayachi stated that they are already an existing unit in KASEZ for manufacturing activity and now they propose to set up a new warehousing unit in KASEZ. He further stated that he is in the business of plastic since 2007 and looking at the potential export markets they propose to set up a warehousing unit in KASEZ for plastic items. He further stated that already have open space in their existing unit which will be utilised for the proposed warehousing activity.

The Committee asked the applicant as to why the unit is asking for similar kind of items for warehousing which they are already manufacturing. Shri Ayachi replied that the present production capacity is not sufficient to meet the requirement of their clients and because of that they wish to set up a warehousing unit for plastic items. The Committee noted that the applicant has submitted entire chapters of items in ITC HS for approval.

The Approval Committee after due deliberation decided to approve the proposal for warehousing service activity (subject to applicant submitting revised list of specific items to be warehoused) and subject to standard 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) iii) 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.
iv) v) Further, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. 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.

179.2 REQUEST FOR BROADBANDING/ITEM ADDITION

AGENDA ITEM NO. 179.2.1 Inclusion of items in Trading/Warehousing activity– Request of M/s. Bhanji Govindji & Company, 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.

Now the said unit has requested for inclusion of liquors in their existing trading/warehousing activity.

Shri Amrit Pal, General Manager (Marketing) of the firm explained their proposal. Shri Pal stated that they are receiving enquiry from their

clients for export purpose and thus they intend to include proposed items for trading/warehousing activity in the existing LoA for export purpose. He further informed that he is already into the business of trading of imported liquor and they have distributing rights for the State of Maharashtra and Karnataka. He further stated that the said proposed goods will be imported from United Kingdom and exported to France, Saudi Arabia, etc. He further clarified that they have adequate space in their unit as they have 2 sheds located at ground & first floor and they utilise one shed exclusively for storage of liquor.

The Approval Committee after due deliberation decided to approve the proposal of additional items in their trading/warehousing activity subject to standard terms and conditions and subject to verification report of the Committee of two officers who will inspect the facility created by the unit for storage of liquor and allied items with regard to hygiene, temperature control and security arrangements, etc. The approval for item addition will be granted based on the report of the Committee.

i) allowed to be traded and any restrictions on import/export of any items will apply.
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) Further, the applicant 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 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/warehousing 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 liquor and allied items will be 100% exported and also an Affidavit that no DTA sale of any traded/warehoused goods even if damaged or otherwise will be allowed and if the traded/warehoused 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.
viii) Further, the unit 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.
ix) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. x) Further, the unit will give an undertaking that none of the items proposed for trading/warehousing activity 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. 179.2.2 Request for items addition in Trading /Warehousing service activity of M/s. GSM Global Inc, KASEZ.

M/s. GSM Global Inc, KASEZ is a approved unit vide LoA No. KASEZ/IA/ 05/2021-22 dated 23.06.2021 for Manufacturing, Trading & Warehousing Service activity subject to certain terms and conditions as enumerated in the aforesaid Letter of Approval.

The said unit has now requested for permission for addition of items in their trading as well as warehousing service activity in their existing LoA.

Shri Anand Mehta, Authorised Representative of the firm explained their proposal. Shri Mehta stated that they wish to add some items for trading and warehousing activity in their existing LoA.

The Approval Committee after due deliberation decided to approve the proposal of additional items 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) The items falling under Chapter 72 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). 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, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. vii) 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. 179.2.3 Broad banding of Manufacturing Activity (Addition of 01 new product in unit’s LoA) - Request of M/s LMP Overseas, KASEZ.

M/s LMP Overseas, KASEZ is an approved unit for Manufacturing activity, Trading activity vide LoA No. 18/2020-21 dated 09.10.2020. The LoA of the unit was further broad banded for warehousing service activity of various items vide letter dated 08.04.2021. The LoA of the unit is valid till 05.10.2026.

The said unit has now requested for broad banding of their LoA for addition of 01 item for manufacturing activity.

Shri Anand Mehta, Authorised Representative of the firm explained their proposal. Shri Mehta stated they want one item addition for processing of saffron. He further stated that the said goods will be procured from DTA

as well as imported and the goods will undergo processing, grading and sorting and the same will repacked and sold in DTA as well as exports.

The Committee noted that saffron is a high value/sensitive item and therefore the Approval Committee after due deliberations decided to reject their proposal for addition of 01 item for manufacturing.

AGENDA ITEM NO. 179.2.4 Addition of new items in their LoA for Trading and Warehousing Service Activity – Request of 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 addition of 02 items 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 02 items for trading and warehousing activity in their existing LoA. He further stated that the said items will be imported and the same is being used in tile factories and detergent plants.

The Approval Committee after due deliberation decided to approve the proposal of addition of two items 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) Further, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. 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. 179.2.5 Request for items addition in Trading /Warehousing service activity of M/s. F.N. Impex, KASEZ.

M/s. F.N. Impex, KASEZ is an approved unit vide LoA No. KASEZ/IA/ 11/2021-22 dated 16.09.2021, as amended for Trading & Warehousing Service activity subject to certain terms and conditions as enumerated in the aforesaid Letter of Approval.

The said unit has now requested for permission for addition of items in their trading as well as warehousing service activity.

Nobody appeared before the Committee to explain the proposal. The Committee was informed about the unfortunate demise of the Proprietor of the firm two days ago and observed that in view of the circumstances no alteration to the proposal can be made as the Proprietor is no more and the new constitution of the firm is still not decided. Therefore, the Committee decided to defer their proposal till the issue of the new owner is decided by the firm.

179.3 MISCELLANEOUS ITEMS

AGENDA ITEM NO. 179.3.1 Intimation of Name Change of Directors of the Company M/s. Luckystar International Pvt. Ltd., KASEZ.

M/s Luckystar International Pvt. Ltd., KASEZ is an approved unit for manufacturing of All types of plastic bags, Garbage collection, carry bags, shopping bags, house hold and allied items and plastic granules, shredding, grinding pieces, chrushing, sheets, extruded and moulded articles, Agglomerates, colored tarpaulins in Kandla Special Economic Zone vide

Letter of Approval No. KFTZ/IA/1673/ 96/2325 dated 04-06-1997, as amended.

Now the said unit has intimated regarding name change of Directors of the company.

The Committee noted that in the instance case there is only change of surname of the existing Directors and there is no change in the Directorship of the company. The Committee noted that since there is only change in surname and no change in Directorship the case does not fall within the purview of the UAC. Therefore, with the permission of the Approval Committee the agenda item was decided to be withdrawn from the UAC and to be processed on file.

AGENDA ITEM NO. 179.3.2 Intimation of Name Change of one Partner of the Firm M/s. Mokshstar International, KASEZ.

M/s Mokshstar International, KASEZ is an approved unit for manufacturing of Plastic Granules/Shredding/Grinding/Pieces etc. from waste/scrap/ discarded/obsolete plastic items, etc. in Kandla Special Economic Zone vide Letter of Approval No. KFTZ/IA/1657(A)/96 dated 31- 12-1996, as amended.

Now the said unit has intimated regarding name change of one Partner of the firm.

The Committee noted that in the instant case there is only change of surname of one of the existing Partners and there is no change in the Partnership of the firm. The Committee noted that since there is only change in surname of one of the Partners and no change in Partnership the case does not fall within the purview of the UAC. Therefore, with the permission of the Approval Committee the agenda item was decided to be withdrawn from the UAC and to be processed on file.

AGENDA ITEM NO. 179.3.3 Intimation of Name Change of Directors of the Company M/s. Satguru Polyfab Pvt. Ltd., KASEZ.

M/s Satguru Polyfab Pvt. Ltd., KASEZ is an approved unit for manufacturing of Pellets, agglomerates, granules, LDPE/HDPE/PP/ ABS etc. etc. in Kandla Special Economic Zone vide Letter of Approval No. KFTZ/IA/1690/97/6925 dated 12.11.1997, as amended.

Now the said unit has intimated regarding name change of Directors of the company.

AGENDA ITEM NO. 179.3.4 Intimation of Name Change of Proprietor of the Firm M/s. Shreeji Polymers, KASEZ.

M/s Shreeji Polymers, KASEZ is an approved unit for manufacturing of Recycling of LDPE/HDPE Scrap in to granules, Agglomerates & Lumps etc. in Kandla Special Economic Zone vide Letter of Approval No. KFTZ/IA/1705(A)/97/10787 dated 09-02-1998, as amended.

Now the said unit has intimated regarding name change of Proprietor of the firm.

The Committee noted that in the instance case there is only change of surname of the Proprietor and there is no change in the Proprietorship of the firm. The Committee noted that since there is only change in surname and no change in Proprietorship the case does not fall within the purview of the UAC. Therefore, with the permission of the Approval Committee the agenda item was decided to be withdrawn from the UAC and to be processed on file.

AGENDA ITEM NO. 179.3.5 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 includes an intermediate product vide LoA No. KASEZ/IA/1922/2003-04 dated 16-06- 2003, as amended from time to time.

The Committee noted that their request for one time permission for export of 250 MT used/second hand Shoes was discussed in the 174th UAC meeting held on 28.01.2022 and 175th UAC meeting held on 22.02.2022 wherein the UAC after due deliberation defer the proposal of the unit and directed that a Committee from the IA-1 Section shall ascertain the exact quantity of worn/second hand shoes lying in the premises of the unit and then Committee can take decision for one time permission for export of old & used/worn Shoes.

The Committee noted that on the basis of inspection report dated 10.05.2022 submitted by the constituted Committee, that approx 25 MT (252 Bags containing used/second hand Shoes) old & used/second hand Shoes were found lying in the unit. The Committee queried the representative regarding the huge variation in respect of quantity actually found in the premises and the request of the unit for permission for export of 250 MT of worn/used shoes. In this regard, Shri Yashu Garg, Partner of the firm explained that the actual quantity lying at their premises is 25 MT and that earlier they requested for 250 MT approx. based on their future assumptions for 5 years. He admitted the unit’s mistake and apologised for the excessive projection. The Committee informed him that such permissions were to be sought on an actual case-to-case basis and not on the basis of future projections.

The Committee noted that worn shoes in bale form also fall under ITC (HS) 6309 0000 i.e. same as worn clothing and it complies with chapter note 3 (b) “Footwear and headgear of any material other than asbestos”.

The Approval Committee after due deliberation approved the request of the unit for one time permission for export of the actual quantity of roughly 25 MT of used/second hand Shoes as was earlier approved in respect of other worn/used clothing units subject to the condition that the unit will submit Proof of Export to the office of the Development Commissioner, KASEZ.

AGENDA ITEM NO. 179.3.6 Permission for Import of Raw Material – Request of M/s. Global Recyclers, KASEZ.

M/s Global Recyclers, KASEZ is an approved unit for manufacturing activity of Pulled & Spinning Fiber and yarn and had been issued in- principle LoA dated 21.01.2022 as per the decision of the 173rd UAC.

Now the said unit has requested for permission to import Raw Material falling under ITC HS 63101020 i.e. “tailor cutting and clip”.

In this regard, at the time of consideration of their proposal in the 173rd UAC, they informed that the raw materials required in their manufacturing process will be procured from their sister concern unit M/s. Flax Apparels and other worn/used clothing units of KASEZ and they will not import any raw materials for their proposed project.

Shri Sanjay Mehra, CEO of the firm explained their revised proposal. Shri Mehra stated that due to shortage of raw material they wish to import the same.

The provisions of Rule 18(4)(c) of the SEZ Rules, 2006 have been brought to the notice of the Committee wherein it appears that any project relying on any form of used/secondary textile materials as well as other recyclable textile materials, even if they may be freely importable on mutilation are also disallowed as per the said Rule. The Committee noted that the permission granted to the unit falls within the ambit of Rule 18(4)(c) of the SEZ Rules, 2006 and the in-principle LoA dated 21.01.2022 is liable to be rescinded. Therefore, the Approval Committee after due deliberation decided to cancel the in-principle LoA, ab initio.

The Committee also noted that a similar approval has been granted to M/s. Shanlok International in the 178th UAC meeting for addition of manufacturing activity. In view of the decision taken above, the same shall also be applicable to M/s. Shanlok International. Therefore, the approval granted for addition of manufacturing activity to M/s. Shanlok International shall stand cancelled, ab initio.

AGENDA ITEM NO. 179.3.7 Permission to warehouse goods on behalf of DTA & Foreign clients – Request of M/s. Commodities Trading (SEZ Warehousing Division), KASEZ.

The Committee noted that M/s. Commodities Trading (SEZ Warehousing Division) has requested for permission to warehouse 02 additional items on behalf of Foreign/DTA clients.

The Committee noted that there is an ongoing investigation by DRI in respect of steel coils imported at their warehouse. Therefore, the Approval Committee after due deliberation decided to defer their proposal till the outcome of the investigation proceedings.

AGENDA ITEM NO. 179.3.8 Request of M/s. Liladhar Pasoo Forwarders Pvt. Ltd., KASEZ for approval of items in their warehousing service activity.

The Committee noted that M/s. Liladhar Pasoo Forwarders Pvt. Ltd. has requested for permission to warehouse 16 additional items to be warehoused in KASEZ on behalf of DTA/Foreign clients.

Shri Surojit Chakraborty, Vice President of the company 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 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:

AGENDA ITEM NO. 179.3.9 Permission to warehouse goods on behalf of Overseas/ DTA client – Request of M/s. OSGL Overseas, KASEZ.

The Committee noted that M/s. OSGL Overseas has requested for permission to warehouse 18 additional items to be warehoused in KASEZ on behalf of DTA/Foreign clients.

Shri Swarup Shetty, 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 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) This clause will have overriding effect for any approval granted in LoA now or before. ii) 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.
iii) 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 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/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. 179.3.10 Permission to warehouse goods on behalf of Foreign client – Request of M/s. Shreyas Packaging Industries, KASEZ.

The Committee noted that M/s. Shreyas Packaging Industries has requested for permission to warehouse 12 additional items on behalf of Foreign clients.

Shri R. G. Chellani, Partner of the firm explained their proposal. Shri Chellani stated that they are already dealing in warehousing of food items along with other items. He further informed that they already have required infrastructure for storage of liquors and the said additional items will be for 100% re-export and no DTA sale is envisaged.

The Committee after due deliberation decided to permit the items to be warehoused by the above unit on behalf of Foreign clients as submitted by the unit subject to the unit fulfilling NFE criteria and subject to following conditions. This permission will be also subject to verification report of the Committee of two officers who will inspect the facility created by the unit for storage of liquor and allied items with regard to hygiene, temperature control and security arrangements, etc. The approval for warehousing item will be granted based on the report of the Committee:

i) This clause will have overriding effect for any approval granted in LoA now or before. 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) Further, the applicant 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 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/warehousing 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 liquor and allied items will be 100% exported and also an Affidavit that no DTA sale of any traded/warehoused goods even if damaged or otherwise will be allowed. If the traded/warehoused 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 warehousing activity.

AGENDA ITEM NO. 179.3.11 Permission to warehouse goods on behalf of DTA Importer - Request of M/s. Star Exim Warehouse, KASEZ.

The Committee noted that M/s. Star Exim Warehouse has requested for permission to warehouse 1 additional item on behalf of DTA clients.

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

i) This clause will have overriding effect for any approval granted in LoA now or before. ii) Further, with respect to warehoused item viz. Wall 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. iii) 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 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/ 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. 179.3.12 Permission to warehouse goods on behalf of DTA Importer – Request of M/s. Zest Marine Services Pvt. Ltd. (Unit-II), KASEZ.

The Committee noted that M/s. Zest Marine Services Pvt. Ltd. (Unit-II) has requested for permission to warehouse 02 additional items on behalf of Foreign/DTA clients.

The Committee after due deliberation decided to permit the additional items to be warehoused by the above unit on behalf of DTA/Foreign clients as submitted by the unit for further supply to foreign & coastal vessels and
subject to the unit fulfilling NFE criteria and also subject to following conditions:

i) This clause will have overriding effect for any approval granted in LoA now or before. ii) Further, Base oil will not be permitted for import/allowed to be warehoused. iii) 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 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. 179.3.13 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.

Nobody appeared before the Committee to explain the proposal and the Committee decided to defer the proposal with the direction to the unit to submit specific list of items approved in their existing LoA for which they require DTA sale facility.

TABLE AGENDA ITEM NO. 179.4.1 Request of addition of Warehousing Service Activity in their Existing LoA and approval of items under the Warehousing Service Activity on behalf of DTA/ Foreign Clients – Request of M/s. India International, KASEZ.

M/s India International, KASEZ is an approved unit for Trading Activity vide LoA No. issued from F. No. KASEZ/IA/001/2010-11 dated 28.04.2010, as amended.

Now the unit has requested for addition of Warehousing Service Activity in their Existing LoA and approval of items under the Warehousing Service Activity on behalf of DTA/ Foreign Clients.

Shri K. M. Mathew, Authorised Representative of the firm explained their proposal. He informed that they wish to include warehousing activity in their existing LoA for trading activity. He further stated that they are having 2 sheds out of which one shed will be utilized for warehousing activity.

The Approval Committee after due deliberation decided to approve the addition of warehousing service activity except item at Sr. No. 1 & 2 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) 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 trading and warehousing service activity and earmark separate space for both the activities.
vi) Further, the applicant will submit separate APRs for their 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) 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) 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.

TABLE AGENDA ITEM NO. 179.4.2 Permission to warehouse goods on behalf of Overseas/DTA 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 K. M. Mathew, 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. 1, 2 & 12 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:

i) This clause will have overriding effect for any approval granted in LoA now or before. ii) iii) 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. iv) The above permission is also subject to further condition that the unit shall maintain separate accounts for trading and warehousing service activity and earmark separate space for both the activities.
v) Further, the applicant will submit separate APRs for their trading and warehousing service activities.
vi) Further, the applicant will maintain separate stock register for trading and warehousing which will be subject to regular checking by the KASEZ customs authorities. vii) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. viii) 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.

TABLE AGENDA ITEM NO. 179.4.3 Request of M/s Transworld Furtichem Pvt. Ltd. (Unit-I), KASEZ for broad banding for additional manufacturing activity of Single Super Phosphate (SSP) in their existing Letter of Approval No. KASEZ/IA/024/2004-05 dated 26.10.2004.

M/s Transworld Furtichem Pvt. Ltd. (Unit-I), Plot No. 353 & 367, Sector-IV, Kandla Special Economic Zone, Gandhidham is an approved unit for Manufacturing of N.P.K. Fertilizers vide Letter of Approval No.

KASEZ/IA/024/2004-05 dated 26.10.2004 amended/ extended from time to time.

The unit vide has now requested for broad-banding for inclusion of one additional item in their manufacturing activity in their existing LoA.

The Committee noted that there is an ongoing investigation against the said unit by the CGST authorities and therefore the Committee after due deliberations decided to defer the proposal till the outcome of the investigation initiated against the unit is confirmed.

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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