Minutes of the 187th meeting of Approval Committee

Minutes of the 187th Unit Approval Committee Meeting of Kandla SEZ held on 25.01.2023 at 11:00 hrs under the Chairmanship of Shri Akash Taneja, Development Commissioner, Kandla Special Economic Zone.

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Meeting was conducted in Hybrid mode i.e. partly physically and partly via Video Conferencing. The following were present:

1. Shri. Satyadeep
   : Joint Development Commissioner,
   Mahapatra

KASEZ.

2. Shri R. H. Meena
   : Additional Commissioner of Customs,
   Kandla (Video Conferencing mode).

3. Shri. Manish Gupta : Income Tax Officer, Gandhidham (Video Conferencing mode).

4. Shri. Bharat Nakum : Manager R. M., DIC, Bhuj

(Video Conferencing mode).

Absentees:-

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

187.I Review/Confirmation of the minutes of last meeting (186th UAC) of the Approval Committee:-

Minutes of the last meeting of Approval Committee were confirmed.

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187.1 NEW UNIT APPLICATION

AGENDA ITEM NO. 187.1.1 Application for setting up of a Manufacturing and Warehousing Service unit in KASEZ namely M/s. Kutch Polymers Unit-II, Shed No. 334, A-II Type, Sector-III, Kandla Special Economic Zone.

A proposal has been submitted by M/s Kutch Polymers (Unit-II), KASEZ for setting up a unit in Kandla SEZ for Manufacturing and Warehousing Service activity.

Shri Ankesh Gupta, Partner and Shri Anand Mehta, Authorised Representative of the firm explained their proposal. Shri Gupta stated that they are already running a plastic recycling unit in KASEZ and now they wish to set up a unit as Unit-II for manufacturing and warehousing activity. He further stated that they are already in possession of Shed No. 334, A-II type, Sector-III, KASEZ which they propose to utilise for the proposed Unit- II.

The Committee noted that the unit has requested for manufacturing and warehousing of plastic items. Further, the Committee noted that as there are some compliance issues regarding plastic units it was decided in the 186th UAC that plastic items will not be permitted till the relevant compliance issues are resolved.

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

AGENDA ITEM NO. 187.1.2 Application for setting up of a Manufacturing & Trading unit in KASEZ namely M/s. Sahastraa Exports Pvt. Ltd., 601-602, 6th Floor, Navkar Plaza, Bajaj Road, Vile Parle West, Mumbai – 400 056.

A proposal has been submitted by M/s Sahastraa Exports Pvt. Ltd., Mumbai for setting up a unit in Kandla SEZ for Manufacturing and Trading activity.

Shri Suhhail Agarwaal, Partner of the firm explained their proposal.

The Committee was informed that presently there is acute shortage of space in Kandla SEZ. Further, the Committee was informed by the Joint Development Commissioner that presently there are 25 applicants holding in-principle LoA and awaiting allotment of space to commence their

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authorized operations. The Chairman explained to the applicant that the process of eviction of certain units which are inactive and not contributing to the objectives of the SEZ scheme is underway and that the same shall result in creation of space for new units. Further, the Chairman of the Committee who is also the ex-officio Chairman of the KASEZ Authority explained that there is a 100-acre plot of land which is also being taken up for development on a war-footing to generate extra space for incoming units.

In view of the above, the Committee requested the Kandla SEZ Authority to expedite the development of the 100-acre area and the Joint Development Commissioner (Estate Officer) to expedite the process of eviction of inactive/non-working units.

defer the proposal till the space is made available to incoming units.

AGENDA ITEM NO. 187.1.3 Application for setting up of a Manufacturing and Warehousing Service unit in KASEZ namely M/s. Shanky Petroleums (Unit - II), Shed No. 79, CPWD, Sector – I and Plot No. MY 445, Kandla SEZ, Gandhidham – 370 230.

A proposal has been submitted by M/s Shanky Petroleums (Unit - II), KASEZ, Gandhidham for setting up a unit in Kandla SEZ for Manufacturing and Warehousing Service activity.

Shri Karan Pandit, Authorised Representative of the firm explained their proposal. Shri Pandit stated that they are already approved in KASEZ for trading activity of plastic items, petroleum products, etc. and now they wish to set up a unit as Unit-II for manufacturing and warehousing activity. He further stated that they are already in possession of Plot No. 445, Marshalling Yard, KASEZ which they propose to utilise for the said Unit-II.

The Committee noted that the unit has requested for manufacturing and warehousing of plastic items. Further, the Committee noted that as there are some compliance issues regarding plastic units it was decided in the 186th UAC that plastic items will not be permitted till the relevant compliance issues are resolved.

defer their proposal.

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AGENDA ITEM NO. 187.1.4 Application for setting up of a Manufacturing, Trading and Warehousing unit in KASEZ namely M/s. R B Trading Co., Office No. 113, 1st Floor, Plot No. 31, Sector – 8, Gandhidham – Kutch – 370 201.

A proposal has been submitted by M/s R B Trading Co., Gandhidham for setting up a new unit in Kandla SEZ for Manufacturing, Trading and Warehousing activity.

Shri Rahul Yadav, Authorised Representative of the firm explained their proposal and informed that they wish to set up a manufacturing, trading and warehousing unit in KASEZ.

The Committee explained to the applicant the present position of acute shortage of space in KASEZ and measures being taken to make the space available to incoming units, as detailed at agenda item no. 187.1.2 above.

The Committee observed that the decision taken as recorded in agenda item no. 187.1.2 above holds good here also.

AGENDA ITEM NO. 187.1.5 Application for setting up of a Warehousing and Trading unit in KASEZ namely M/s. RG Supply and Logistics, Flat No. G-1, Plot No. 414, Ward 2B, Adipur, Kachchh, Gujarat – 370 205.

A proposal has been submitted by M/s RG Supply and Logistics, Adipur, Kachchh for setting up a new unit in Kandla SEZ for Trading and Warehousing activity.

Shri Goda Prabhakar, Authorised Representative of the firm explained their proposal and informed that they wish to set up a trading and warehousing unit in KASEZ.

The Committee explained to the applicant the present position of acute shortage of space in KASEZ and measures being taken to make the space available to incoming units, as detailed at agenda item no. 187.1.2 above.

The Committee observed that the decision taken as recorded in agenda item no. 187.1.2 above holds good here also.

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AGENDA ITEM NO. 187.1.6 Application for setting up of a Trading and Warehousing unit in KASEZ namely M/s. Maheshwaram Corporation, Office No-37, Prime Plaza, Nana Kapaya, Mundra.

A proposal has been submitted by M/s Maheshwaram Corporation, Nana Kapaya, Mundra for setting up a new unit in Kandla SEZ for Trading and Warehousing activity.

Shri Jignesh Maheshwari, Partner of the firm explained their proposal and informed that they wish to set up a trading and warehousing unit in KASEZ.

The Committee explained to the applicant the present position of acute shortage of space in KASEZ and measures being taken to make the space available to incoming units, as detailed at agenda item no. 187.1.2 above.

The Committee observed that the decision taken as recorded in agenda item no. 187.1.2 above holds good here also.

AGENDA ITEM NO. 187.1.7 Application for setting up of a Trading and Warehousing unit in KASEZ namely M/s. Kapalin Trade Link LLP, Room 104, First Floor, Kutch Arcade – Platinum, S.No. 234/1 & 235, Village Mithi Rohar, Gandhidham.

A proposal has been submitted by M/s Kapalin Trade Link LLP, Mithi Rohar, Gandhidham for setting up a new unit in Kandla SEZ for Trading and Warehousing activity.

Shri Raju Chand and Shri Hemchanrda Yadav, Partners of the firm explained their proposal and informed that they wish to set up a trading and warehousing unit in KASEZ.

The Committee explained to the applicant the present position of acute shortage of space in KASEZ and measures being taken to make the space available to incoming units, as detailed at agenda item no. 187.1.2 above.

The Committee observed that the decision taken as recorded in agenda item no. 187.1.2 above holds good here also.

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AGENDA ITEM NO. 187.1.8 Application for setting up of a Manufacturing unit in KASEZ by M/s. Being Healthy Foods, HIG 977, Sector-3, Ranjit Avenue, Amritsar, Punjab-143001.

A proposal has been submitted by M/s Being Healthy Foods, Amritsar, Punjab for setting up a new unit in Kandla SEZ for Manufacturing activity.

Shri Rohit Sareen, Proprietor of the firm explained their proposal and informed that they wish to set up a manufacturing unit in KASEZ. Shri Sareen stated that they are already doing exports to 23 countries and their turnover is about Rs. 7-8 crores in trading activity and now they want to set up a salt manufacturing unit in KASEZ.

The Committee explained to the applicant the present position of acute shortage of space in KASEZ and measures being taken to make the space available to incoming units, as detailed at agenda item no. 187.1.2 above.

The Committee observed that the decision taken as recorded in agenda item no. 187.1.2 above holds good here also.

AGENDA ITEM NO. 187.1.9 Application for setting up of a Trading and Warehousing unit in KASEZ namely M/s. Binaba Enterprise, Office No. S-3, Plot No. 25, Sector-1-A, Above Patel Homeo Hall, Behind Gandhi Market, Gandhidham, Kutch- 370201.

A proposal has been submitted by M/s Binaba Enterprise, Gandhidham for setting up a new unit in Kandla SEZ for Trading and Warehousing activity.

Ms. Komal Sukharamwala, Partner of the firm explained their proposal and informed that they wish to set up a Trading and Warehousing activity unit in KASEZ.

The Committee explained to the applicant the present position of acute shortage of space in KASEZ and measures being taken to make the space available to incoming units, as detailed at agenda item no. 187.1.2 above.

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The Committee observed that the decision taken as recorded in agenda item no. 187.1.2 above holds good here also.

AGENDA ITEM NO. 187.1.10 Application for setting up of a Trading and Warehousing unit in KASEZ namely M/s. Aadarsh Infraspace, 701 Diamond Appartment, Mahidharpura, Surat-496003.

A proposal has been submitted by M/s Aadarsh Infraspace, Surat for setting up a new unit in Kandla SEZ for Trading and Warehousing activity.

Shri Kunalsinh Jadeja, Authorised Representative of the firm explained their proposal and informed that they wish to set up a Trading and Warehousing activity unit in KASEZ.

The Committee explained to the applicant the present position of acute shortage of space in KASEZ and measures being taken to make the space available to incoming units, as detailed at agenda item no. 187.1.2 above.

The Committee observed that the decision taken as recorded in agenda item no. 187.1.2 above holds good here also.

187.2 REQUEST FOR BROADBANDING/ITEM ADDITION

AGENDA ITEM NO. 187.2.1 Request for addition of items under Trading Activity– Request of M/s. Hwatsi Chemical Pvt. Ltd., KASEZ.

M/s Hwatsi Chemical Pvt. Ltd., Plot No. 586/587, New Area, KASEZ, Gandhidham has been approved for Manufacturing Activity of Thinners and Trading Activity of Chemical and Solvents vide LoA No. 004/2011-12 dated 13.05.2011 issued vide F. No. KASEZ/IA/004/2011-12 dated 13.05.2011, as amended from time to time.

Now the said unit has requested for addition of two items in their LoA for trading activity.

Shri Bharat Kumar Sheth, Director of the company explained their proposal. Shri Sheth informed that they wish to add some items in their trading activity. He further informed that items proposed for trading will be exported to Kenya, Sri Lanka, Saudi Arabia, etc.

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The Approval Committee after due deliberation decided to approve the proposal for addition of items in trading activity in their existing LoA subject to standard terms and conditions: -

i) None of the items which are restricted or prohibited will be 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) 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.
iii) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.
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) Further, the unit will give an undertaking that none of the items proposed are falling under negative list and if the items are found in negative list, penal action will be initiated against them.

AGENDA ITEM NO. 187.2.2 Request for addition of items in Trading activity in their existing Letter of Approval No. KASEZ/IA/18/2016-17/13497 dated 18.01.2017 for trading activity, as amended issued to M/s Tubacex Service Solutions India Pvt. Ltd., KASEZ

M/s Tubacex Service Solutions India Pvt. Ltd., KASEZ is an approved unit for Trading activity vide LoA No. F. No. KASEZ/IA/18/2016-17/13497 dated 18.01.2017, as amended from time to time.

Now the said unit has requested for addition of two items in their LoA for trading activity.

The Approval Committee after due deliberation decided to approve the proposal for addition of items in trading activity in their existing LoA and 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.

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ii) iii) The items falling under Chapter 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). iv) v) vi) proposed 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. 187.2.3 Addition of Items under Trading Activity - Request of M/s Everest Kanto Cylinder Limited, KASEZ.

M/s Everest Kanto Cylinder Limited, KASEZ is an approved unit for Manufacturing and Trading Activity for items i.e. manufacture of high pressure seamless gas cylinder and has been issued with LoA No. 31/2006- 07 dated 05.04.2007 as amended subject to certain terms and conditions enumerated in the aforesaid Letter of Approval.

The Committee noted that their proposal was deferred in the last UAC meeting as the unit was NFEE negative in their last block period and directed the unit to submit recent years APRs, brief project details and stock statement.

Now the said unit has submitted details of their project for trading activity, stock statement & reasons for not achieving positive NFEE and requested for addition of items in the Trading Activity.

Shri Vivek Milak, Authorized Representative of the company explained their proposal. Shri Milak stated that they during last two years there was no export as regards their trading activity and now they are receiving inquiry for turnkey based supplies in relation to their trading activity for supply to SEZ units and exports. He further stated that about 70-80% of traded goods

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will be sourced from India and within the next one-and-a-half years they will be a positive net foreign exchange earner.

The Approval Committee after due deliberation decided to approve the proposal for addition of items in trading activity in their existing LoA 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. ii) iii) The items falling under Chapter 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). iv) v) vi) proposed 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. 187.2.4 Broad-banding of Manufacturing Activity – Request of M/s. K P Woven Private Limited, KASEZ.

M/s. K P Woven Private Limited is an approved unit for manufacturing and trading unit in KASEZ. The unit has been granted Letter of Approval No. 12/2019-20 dated 02.12.2019, as amended from time to time.

Now the unit has requested for broad-banding of items in manufacturing activity in their existing LoA.

Shri Kishor Athanikar, Authorised Representative of the company explained their proposal. Shri Athanikar stated during the manufacturing

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process of FIBC bags, plastic waste i.e. side cutting, tape, etc. are generated which they wish to further re-process to make further value added products. Further, Shri Athanikar explained that they shall manufacture granules from the plastic by products generated during the process of manufacture and most of the granules, so manufactured, shall be put to use back in their manufacturing process and part of the same shall be cleared as it is.

The Committee noted that the unit has requested for broad-banding of manufacturing activity- a proposal which in essence involves recycling of plastic scrap. In view of the same, the Committee felt that the provisions of Rule 18(4) of the SEZ Rules, 2006 are attracted in this case wherein the UAC cannot entertain any new proposals involving recycling of Plastic Scrap or waste.

The Approval Committee after due deliberation decided to reject the proposal for broad-banding of manufacturing activity.

AGENDA ITEM NO. 187.2.5 Request for addition of Trading activity in their existing Letter of Approval No. 8/12/90-FTZ dated 14.12.1990 for manufacturing activity, as amended issued to M/s Ratan Knitted & Woven Garments Pvt. Ltd., KASEZ

M/s Ratan Knitted & Woven Garments Pvt. Ltd., KASEZ is an approved unit for Manufacturing Activity of Men’s and Ladies Knitted/Woven Readymade Garments vide LoA No. F. No. 8/12/90-FTZ dated 14.12.1990, as amended from time to time.

Now the said unit has requested for inclusion of trading activity in their existing LoA.

Shri Milan Pota, Authorized Representative of the company explained their proposal. Shri Pota confirmed that they are in possession of enough space to accommodate the proposed trading activity as they are having about 400 sq. Mtrs. Area each at ground and the first floors. He further informed that they will utilise the first floor for manufacturing activity and ground floor will be utilised for trading activity and requested to include Trading activity of allied products in their existing LoA. He further stated that the traded goods will be procured from the local market and the same will be 100% exported.

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The Approval Committee after due deliberation decided to approve the proposal for addition of trading activity in their existing LoA and 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. ii) iii) iv) The above permission is also subject to further condition that the unit shall maintain separate accounts for manufacturing, and trading activity and earmark separate space for both the activities.
v) Further, the applicant will submit separate APRs for their manufacturing and trading activity.
vi) vii) proposed 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. 187.2.6 Request of M/s Regent Ropes, KASEZ for broad banding of new item in manufacturing activity in their existing Letter of Approval No. KASEZ/IA/1868/2001-02/7001 dated 22.01.2001.

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 from to time.

Now the unit has requested for broad-banding of items in manufacturing activity in their existing LoA.

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Shri Pankaj Goyal and Shri Jitender Khushalani, Partners of the firm explained their proposal. They informed that looking at the positive market scenario of paper bags and to diversify their business, they wish to include paper bags of different sizes in their manufacturing activity. They further stated that 95% of the raw materials will be procured from local markets of Morbi and Ahmedabad and the finished goods will be exported to the tune of 90%. Further, they informed that presently they wish to utilize their existing premises and they shall acquire additional space, if required, in future.

The Approval Committee after due deliberation decided to approve the proposal for additional new items in manufacturing activity subject to standard terms and conditions: -

i) Any restrictions on import/export of manufacturing items and its raw materials will apply.
ii) allowed to be manufactured/imported and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. iii) iv) v) vi) 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. 187.2.7 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. They have commenced their authorised operation in KASEZ w.e.f. 06.03.2021 and accordingly their LoA is valid up to 05.03.2026. Further,

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their LoA was broad banded for manufacturing activity vide letter dated 23.05.2022.

Now the said unit has requested for addition of two new items in their LoA for Trading & Warehousing service activity.

The Approval Committee after due deliberation decided to approve the proposal for addition of two items in trading and warehousing service activity in their existing LoA subject to the applicant submitting KYC of their clients on whose behalf they propose to warehouse goods. The approval shall also be subject to the following standard terms and conditions:

i) 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. 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) 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 both the activities.
v) Further, the applicant will submit separate APRs for their manufacturing, trading and warehousing service.
vi) Further, the applicant will maintain separate stock register for manufacturing, trading and warehousing service which will be subject to regular checking by the KASEZ customs authorities. vii) Further, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. viii) Further, the applicant will give an undertaking that none of the 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.

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AGENDA ITEM NO. 187.2.8 Request for broad banding of manufacturing activity and addition of items under Trading activity -Request of M/s GKN Chemical India Private Limited, KASEZ.

M/s. GKN Chemical India Private Limited, KASEZ is an approved unit with LoA dated 17.08.2022 issued from F. No. KASEZ/IA/GKN/18/2022-23 for manufacturing and trading activity subject to certain terms and conditions enumerated in the aforesaid Letter of Approval.

Now the said unit has requested for broad banding of their manufacturing activity and also addition of items in trading activity.

Shri Sujit, Manager of the company explained their proposal. Shri Sujit informed that they wish to broad-band their manufacturing activity for 17 more finished goods and also add 40 items in their trading activity. He further informed that they wish to include more items in manufacturing and trading so that they can apply for licence from GPCB, PESO, Solvent licences for all the items in one go.

Further, Shri Sujit stated that they are already into the business of manufacturing and Trading activity in KASEZ in their sister concern, which is a proprietary concern. Now, for better management of production, finances and to cater to their growing clientele, they would like to re- organize their business model and accordingly, they would like to have approval for broad-banding manufacturing activity and addition of new items in Trading activity in their new company in line with the approvals given for their existing sister concern firm.

The Committee noted that the unit has already been granted permission for the said items in their sister concern unit and now they wish to include the same items in this LoA also. However, the Committee directed the DC’s office to examine the list of proposed items vis-a-vis items already approved in LoA of their sister concern.

defer the proposal with a direction to first examine the issue on file.

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187.3 MISCELLANEOUS ITEMS

AGENDA ITEM NO. 187.3.1

Intimation of change in Board of Directors – Request of M/s. Amrin Impex Pvt. Ltd., KASEZ.

M/s. Amrin Impex Pvt. Ltd., KASEZ is an approved unit with LoA No. 19/2011-12 dated 29.02.2012, for Warehousing Service Activity and Trading Activity, as amended.

Now the said unit has intimated about the change in Board of Directors of the company and Shareholding pattern.

The Committee noted that two existing Directors have resigned and two new Directors have been appointed. The Committee further noted that the unit has been granted LoA with condition that they will use the premises of their sister concern unit and now since the existing Directors of the company have retired the question of utilizing the space of erstwhile sister concern unit requires further examination.

defer their proposal regarding change in Directors and shareholding pattern and decided to first examine the issue of space of the sister concern unit to be utilised by this unit for their authorised operation.

AGENDA ITEM NO. 187.3.2 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 partners of the firm wherein one Partner has retired from the firm and one new Partner has joined the firm. They have submitted copy of Partnership deed (Retirement- cum-Admission Deed) dated 09.12.2022. Further, the unit has also submitted copy of Form-G issued by the Registrar of Firms, Kachchh District, Gandhidham regarding change in Partnership of the firm.

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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, wherein the change of Directors, etc. may be undertaken by the Unit Approval Committee (UAC).

take on record the proposal of change in partnership of the firm subject to submission of indemnity bond, KYC and IT returns/Net worth certificate of new partner and 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/partnership to the Income Tax Department for necessary action at their end.

AGENDA ITEM NO. 187.3.3 Intimation of change in Partnership deed of M/s. Sarthak Warehousing & Trading Co., KASEZ.

M/s. Sarthak Warehousing & Trading Company, KASEZ is an approved unit for Warehousing and Trading Activity & Manufacturing activity vide letter F.No. KASEZ/IA/008/2010-11 dated 24.06.2010, as amended.

Now the said unit has intimated regarding change in partners of the firm wherein one Partner has retired from the firm and one new Partner has joined the firm. They have submitted copy of supplementary partnership deed (Admission-cum-Retirement Deed) dated 09.01.2023. Further, the unit has also submitted copy of Form-G issued by the Registrar of Firms, Kachchh District, Gandhidham regarding change in partnership of the firm.

The Committee noted that the 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. wherein the same may be undertaken by the Unit Approval Committee (UAC).

take on record the proposal of change in partnership of the firm subject to submission of indemnity bond, KYC and IT returns/Net worth certificate of

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new partner and 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/partnership to the Income Tax Department for necessary action at their end.

AGENDA ITEM NO. 187.3.4 Permission to warehouse goods on behalf of DTA/foreign clients – Request of M/s. Cargo Care Agency, KASEZ.

The Committee noted that M/s. Cargo Care Agency, KASEZ has requested for permission to warehouse additional items on behalf of Foreign/DTA clients.

Shri Goda Prabhakar, 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,
subject to unit fulfilling NFE criterion and submission of KYC of their clients and also subject to the following conditions:

i) allowed to be warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. ii) iii) iv) v) proposed are falling under negative list and if the items are found in negative list, penal action will be initiated against them.

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AGENDA ITEM NO. 187.3.5 Permission to warehouse goods on behalf of Overseas/ DTA client – Request of M/s. F N Impex, KASEZ.

The Committee noted that M/s. F N Impex, KASEZ has requested for permission to warehouse additional items on behalf of Foreign/DTA clients.

items except items at Sr. No. 1, 2, 6 & 7 of the Agenda 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 submit health compliances with regard to cosmetics proposed for warehousing before undertaking of such activities. v) vi) proposed are falling under negative list and if the items are found in negative list, penal action will be initiated against them.

AGENDA ITEM NO. 187.3.6 Permission to warehouse goods on behalf of Overseas/ DTA client – Request of M/s. Harmann Lever Exim, KASEZ.

The Committee noted that M/s. Harmann Lever Exim, KASEZ has requested for permission to warehouse additional items on behalf of Foreign/DTA clients.

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

items except items at Sr. No. 2 of the agenda to be warehoused by the above unit on behalf of DTA/Foreign clients as submitted by the unit, subject to unit submitting specific description in respect of items at Sr. No. 5, 7 & 8 of the agenda, subject to the unit fulfilling NFE criteria and submission of KYC of their clients and also subject to following conditions:

i) ii) Further, with respect to warehoused items viz. cashewnuts the same is allowed to be warehoused subject to fulfilment of the MIP condition as prescribed under Import/Export policy.
iii) Further, with respect to warehousing of items for human consumption/food preparation items the same is allowed subject to compliance of FSSAI norms and all other statutory compliance viz. NOC from Ministry of Health and other concerned agencies before such clearance. iv) v) vi) vii) 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.

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AGENDA ITEM NO. 187.3.7 Request of M/s Krishna Enterprise, KASEZ for item addition in their warehousing activity.

The Committee noted that M/s. Krishna Enterprise, KASEZ has requested for permission to warehouse an additional item on behalf of Foreign/DTA clients.

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 criterion and submission of KYC of their clients and also subject to following conditions:

i) ii) iii) iv) v) 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. 187.3.8 Permission to warehouse goods on behalf of Foreign/DTA clients - Request of M/s. S. R. Brothers, KASEZ.

The Committee noted that M/s. S. R. Brothers, KASEZ has requested for permission to warehouse additional items on behalf of Foreign/DTA clients.

Shri Rafiq Bara, Proprietor of the firm explained their proposal. He informed that they propose to warehouse products on behalf of their clients.

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The Committee noted that the unit has requested for warehousing of plastic items apart from other items and as there are some compliance issues, it was decided that plastic items will not be permitted till the compliance issues with regard to plastic items are resolved.

items except items at Sr. No. 1 to 10 of the Agenda to be warehoused by the above unit on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criterion and submission of KYC of their clients and also subject to following conditions:

i) ii) iii) iv) v) proposed are falling under negative list and if the items are found in negative list, penal action will be initiated against them.

AGENDA ITEM NO. 187.3.9 Permission to warehouse goods on behalf of DTA/Foreign Clients - Request of M/s. Varsur Impex Pvt. Ltd., a unit for warehousing activity, KASEZ.

The Committee noted that M/s. Varsur Impex Pvt. Ltd., KASEZ has requested for permission to warehouse additional items on behalf of Foreign/DTA clients.

Shri Mahendra Kapoor, Authorised Representative of the company explained their proposal. He informed that they propose to warehouse products on behalf of their clients.

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The Committee noted that most of the items requested by the unit are sensitive items. Hence the Committee informed the representative that only non-sensitive items/permissible items will be allowed to be warehoused. In reply, Shri Kapoor stated that they are having confirmed orders from a client and the item at Sr. No. 1 of the proposed warehoused goods will be imported from Greece.

items except items at Sr. No. 10, 15 to 20, 22, 27, 28, 30, 32 & 33 of the Agenda to be warehoused by the above unit on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criterion and submission of KYC of their clients and also subject to the following conditions:

i) ii) iii) iv) Further, with regard to warehoused item at Sr. No. 1, the same will be allowed for the limited purpose i.e. the same will be allowed to be warehoused during the current season only and the import will be allowed only from European countries. v) Further, with respect to warehousing of items for human consumption/food preparation items the same is allowed subject to compliance of FSSAI norms and all other statutory compliance viz. NOC from Ministry of Health and other concerned agencies before such clearance. vi) Further, with respect to warehoused items viz. Paper and allied items, the KASEZ Customs will draw the samples at the time of DTA clearance of each consignment which will be sent for analysis of GSM and other aspects. vii) viii) proposed are falling under negative list and if the items are

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found in negative list, penal action will be initiated against them.

AGENDA ITEM NO. 187.3.10 Permission to warehouse goods on behalf of DTA/Overseas Clients - Request of M/s. Vrinda Exports, a unit for warehousing service activity, KASEZ.

The Committee noted that M/s. Vrinda Exports, KASEZ has requested for permission to warehouse additional items on behalf of Foreign/DTA clients.

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

The Committee noted that most of the items requested by the unit are sensitive items and hence Committee informed the Partner that only non- sensitive items/permissible items will be allowed to be warehoused. Further, the Committee noted that the unit has space issue and observed that the proposed items require more space and directed the Partner to acquire more space in KASEZ and then come up for warehousing of new items.

items, except items at Sr. No. 3, 4, 5, 6 & 11 to 16 of the Agenda, to be warehoused by the above unit on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criterion and submission of KYC of their clients and also subject to following conditions:

i) ii) iii) Further, the unit will submit health compliances with regard to cosmetics proposed for warehousing before undertaking of such activities. iv)

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v) vi) Further, the applicant will give an undertaking that none of the 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. 187.3.11 Permission to warehouse goods on behalf of DTA/Foreign Clients - Request of M/s. Zip Zap Exim Pvt. Ltd. Unit-II, KASEZ.

The Committee noted that M/s. Zip Zap Exim Pvt. Ltd. (Unit-II), KASEZ has requested for permission to warehouse additional items on behalf of Foreign/DTA clients.

Shri Vaibhav Baid, Director of the company explained their proposal. He informed that they propose to warehouse products on behalf of their clients.

items, except items at Sr. No. 14 to 23 of the Agenda, 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) v) proposed falls under negative list or is hazardous or requires environmental clearance for storage/transmission/ handling

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

The Committee directed that DC’s office would examine the request for amendment of description of goods approved in the 163rd UAC meeting on file and put up the same before the UAC.

AGENDA ITEM NO. 187.3.12 Representation of KASEZ Industries Association to discontinue the existing practice of obtaining approval of any new item under OGL by trading/warehousing units in Kandla SEZ

The Kandla Special Economic Zone Industries Association, KASEZ has requested to discontinue the existing practice of obtaining approvals for new items under OGL (Free List) by Trading/Warehousing units in Kandla SEZ.

In this regard, in the 116th UAC meeting held on 19.07.2017, the UAC has decided that the warehousing units in KASEZ will have to seek permission for any new items which they intend to warehouse on behalf of foreign clients as well as DTA clients and submit KYC of the client before warehousing the items. Further, in the 142nd UAC meeting held on 04.03.2019 it was decided that henceforth only new items intended to be warehoused on behalf of the DTA/foreign clients by warehousing units, the approval of UAC will be required and only intimation/KYC of new clients for items already approved to be warehoused will suffice and the same should not be put up before Approval Committee for approval.

Now the Association has requested that in line with the ongoing policy adopted across All SEZs of India, it would be in the interest of all that OGL products for those warehousing units who have been approved for "warehousing services for all items under OGL - except Prohibited & Restricted & Canalised” be allowed accordingly and not required to take item-wise approval.

The Committee deliberated on the issue and noted that for all new items proposed to be traded or warehoused the existing unit holders have to apply to UAC for approval which results in loss of time leading to loss of Business opportunities for units. However, in view of recent incidents of alleged mis-declaration, undervaluation, smuggling, concealment and misuse of SEZ route to smuggle contraband items etc. the Committee opined that there is a need to strike a balance between facilitation and restriction.

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Accordingly, the Approval Committee directed that a Committee consisting of Deputy Development Commissioner, KASEZ and Deputy Commissioner of Customs, KASEZ be constituted to study the practice being followed in other SEZs and to submit a report including the list of items along with ITC HS which are sensitive in nature, prone to mis-declaration, under-invoicing and under-valuation etc.

AGENDA ITEM NO. 187.3.13 Ratification of request already approved in file

The Approval Committee ratified the permission granted to the following units by the Development Commissioner, KASEZ:

Sr.
No. Name of Unit Permission granted for Permission letter issued on 1. M/s. Chandraganta Trading & Warehousing LLP, KASEZ In the agenda item of 183rd UAC meeting held on 22.09.2022 the unit had requested for item addition under both trading and warehousing service activity. However, in the minutes of 183rd UAC meeting held on 22.09.2022, the approval was inadvertently granted for warehousing service activity alone. Subsequently, as approved by the Development Commissioner, KASEZ permission letter was issued to the unit for both trading and warehousing activity.

16.01.2023 2. M/s. Capital Foods Pvt. Ltd., KASEZ In the agenda item of 185th UAC meeting held on 29.11.2022, the details of “No. of equity shares prior to 02.11.2022” and “No. of equity shares as on 02.11.2022” were erroneously interchanged and permission letter dated 08.12.2022 was also issued incorporating the erroneous details.

Corrigendum for correction of shareholding pattern will be issued.

AGENDA ITEM NO. 187.3.14 Intimation of M/s. Kitchen Xpress Overseas Limited, KASEZ regarding import of grains for processing and export.

The Committee noted that the issue relates to import of grains for processing and export and the proposed activity is stated to have been approved for the unit.

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treat the agenda item as withdrawn and directed the DCs office to examine the matter on file.

AGENDA ITEM NO. 187.3.15 Request for inclusion of Clauses/conditions in Trading and Warehousing Service Activities – Request of M/s Bhanji Govindji & Co., KASEZ

M/s Bhanji Govindji & Co., KASEZ is an approved unit for Manufacturing activity, trading activity & warehousing service activity vide LoA No. KASEZ/IA/07/2021-22 dated 09.07.2021, as amended from time to time. Further, the unit was permitted for inclusion of Liquors and allied items in their Trading/Warehousing activity vide LoP dated 11.07.2022.

Now the said unit has requested to amend condition no. (vi) of the LoA
dated 11.07.2021 issued to them to include supplies of liquors and allied items to customs bonded warehouse/Foreign Going Ship/Foreign Embassy and foreign bound vessels calling at Indian Ports & Exports and also export to adjoining landlocked foreign countries.

The Approval Committee after due deliberation decided to approve their proposal and accordingly amend the condition no. (vi) of the LoP dated 11.07.2022.

AGENDA ITEM NO. 187.3.16 Request for change in description of item in manufacturing activity – Request of M/s U.S. Clothing (India) Pvt. Ltd., KASEZ

M/s U.S. Clothing (India) Pvt. Ltd. is an approved unit for manufacturing activity vide LoA No. KASEZ/IA/1865/2001 dated 31.12.2001, as amended from time to time. The Unit was permitted Broadbanding of manufacturing activity of fibre in their LoA vide letter dated 27.07.2020.

Now the said unit has requested to change the description of item as per existing tariff as approved in their broad-banding of manufacturing activity of fibre vide letter dated 27.07.2020.

The Approval Committee after due deliberation decided to defer their proposal and directed the DC’s office to examine their case on file.

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AGENDA ITEM NO. 187.3.17 Intimation for change in constitution from Proprietorship to Partnership of M/s. Vedanshi Impex, KASEZ.

M/s. Vedanshi Impex, KASEZ is an approved unit with LoA dated 28.11.2022 issued from F. No. KASEZ/IA/16/2022-23 for Trading activity of (i) Wine, (ii) Beer and (iii) All kind of Liquor and the initial validity of their LoA is upto 27.11.2023.

The Committee note that the unit has intimated regarding change in constitution from proprietorship to partnership. The Committee further noted that they have submitted copy of notarized Partnership deed dated 15.10.2022 alongwith their application and also copies of Company PAN and PAN & Aadhar of the two new partners. Also the Committee noted that the unit has stated that they have already applied for registration of partnership deed with the Registrar of Firms – Government of Gujarat on 12.12.2022 along with all the required documents and has also submitted copy of acknowledgement of copy of application and the same is under process in the said department and that the delay is due to some minor technical issues at the end of the Registrar of Firms.

The Committee noted that the 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. wherein the same may be undertaken by the Unit Approval Committee (UAC).

take on record the proposal of change in partnership of the firm subject to submission of Business Transfer Agreement being a case of a Partnership firm taking over a Proprietorship firm, Indemnity bond, KYC and IT returns/Net worth certificate of new partners, Form-G issued from Registrar of Firms and 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.

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AGENDA ITEM NO. 187.3.18 Intimation for change in constitution from Proprietorship to Partnership of M/s. Garden Foods Corporation, KASEZ.

M/s Garden Foods Corporation, KASEZ is an approved unit for Trading Activity vide LoA No. issued from F. No. KASEZ/IA/13/2007-08 dated 24.07.2007. The LoA was broad-banded to include manufacturing activity vide LoP F.No. KASEZ/IA/13/2007-08 dated 11.10.2007. At the time of renewal of the LoA in 2018, as decided by the Development Commissioner, the original LoA has been renewed separately for manufacturing activity vide letter F.No.: KASEZ/IA/13/2007-08 dated 18.06.2018; and Trading Activity as “Unit-II” vide letter F.No. KASEZ/IA/13/2007-08 dated 03.08.2018 (in extension to original LoA dated 11.10.2007). Both the LoAs are valid till 28.02.2023.

The said unit has intimated regarding change in constitution from proprietorship to partnership. They have submitted copy of notarized partnership deed dated 04.10.2022 along with their application and also copies of PAN & Aadhar of all the partners. Further, the unit has stated that they have already applied for registration of Partnership deed with the Registrar of Firms, Government of Gujarat on 18.01.2023 along with all the required documents and also submitted copy of acknowledgement of copy of application (in ROF Form-A) and the same is under process in the said Department.

The Committee noted that the 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. wherein the same may be undertaken by the Unit Approval Committee (UAC).

take on record the proposal of change in partnership of the firm subject to submission of Business Transfer Agreement being a case of takeover of a Proprietorship by a Partnership firm, Indemnity bond, KYC and IT returns/Net worth certificate of new partners, Form-G issued from Registrar of Firms and 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.

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TABLE AGENDA ITEM NO. 187.4.1 Issuance of Show Cause Notice to M/s. Zip Zap Exim Pvt. Ltd., KASEZ for non-achievement of positive NFE during their 5 year block period.

It was brought to the notice of the Committee that M/s. Zip Zap Exim Pvt. Ltd., KASEZ has completed its five year block period as on 31.03.2022 and have submitted revised APRs for the year 2017-18, 2018-19, 2019-20, 2020-21 & 2021-22 and based on the revised APRs duly certified by Chartered Accountant submitted by the unit for the period upto 2021-22, the unit was NFE negative to the tune of Rs. 467.18 lakhs.

Therefore, the Approval Committee after due deliberation directed the Development Commissioner, KASEZ to issue Show Cause Notice to the unit and adjudicate the same.

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