IN FORCE SEZ / EOU / FTWZ undated

Minutes of the 188th meeting of Approval Committee

Document text

Minutes of the 188th Unit Approval Committee Meeting of Kandla SEZ held on 24.02.2023 at 11:30 hrs under the Chairmanship of Shri Akash Taneja, Development Commissioner, Kandla Special Economic Zone.

Following were present (via Video Conferencing):

Shri. Himanshu
: Deputy Development Commissioner,
Gunawat

KASEZ.

Shri R. H. Meena
: Additional Commissioner of Customs,
Kandla (Video Conferencing mode).
Shri. Vincent Colaco : Assistant Commissioner of Income Tax, Gandhidham.
Shri. Bharat Nakum : Manager R. M., DIC, Bhuj

Absentees:-

Director (Banking)
SDM
DGFT representative

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

Minutes of the last meeting of Approval Committee were confirmed.

188.1 NEW UNIT APPLICATION

AGENDA ITEM NO. 188.1.1 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.

The Committee was informed that in the recent past similar proposals have already been approved by the Committee. It was decided that the functioning of the approved units will be examined to ascertain whether these units are operating as per the terms and conditions of the approvals granted to them. The Committee was also informed that presently there is acute shortage of space in Kandla SEZ and large sized plots/sheds are not available.

Therefore, the Approval Committee after due deliberation decided to defer the proposal and directed the Development Commissioners office to examine the operations of other similar units already approved.

AGENDA ITEM NO. 188.1.2 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.

defer the proposal and directed the Development Commissioner office to examine the operations of other similar units already approved.

AGENDA ITEM NO. 188.1.3 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.

The Committee noted that the applicant has submitted a huge list of items for their trading and warehousing activity & further observed that the list of items proposed for trading/warehousing are vague/covering entire chapters and accordingly directed the applicant to submit pruned/specific list of items.

The Approval Committee after due deliberation decided to defer the proposal with direction to the applicant to submit pruned/ specific list of items for trading and warehousing. Further, the Committee also directed the Development Commissioner office to simultaneously ascertain the background/experience of the promoters.

AGENDA ITEM NO. 188.1.4 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. He further stated that they are already into warehousing and logistics business in Mundra and are receiving enquiries in respect of plastic and other items.

The Committee noted that the applicant has requested for trading and warehousing of plastic items apart from other items. Further, the Committee noted that as there are some compliance issues regarding plastic units, therefore, it was decided in the 186th UAC that plastic items would not be permitted till the relevant compliance issues are resolved.

The Committee further explained to the applicant the present position of acute shortage of space in KASEZ and informed the applicant that they may have to start their proposed project with less space than requested by them.

The Committee also noted that items at Sr. No. 1, 2 & 5 proposed for warehousing are covering several chapters of ITC HS codes and directed the applicant to submit pruned/specific list of items.

The Approval Committee after due deliberation decided to approve the proposal for trading activity except item at Sr. No. 3 & 7 and warehousing service activity except items at Sr. No. 2, 3, 4, 6, 7 & 8 of the proposal/Agenda (subject to applicant submitting specific description/ specific list of items along with 08 digit ITC HS codes in respect of items at Sr. No. 1 & 5 and KYC of their clients on whose behalf they will warehouse goods) and subject to standard terms and conditions: -

i) The approval is subject to the condition that the applicant should seek a prior approval of any additional items they intend to warehouse and submit KYC details of clients to the Office of the Development Commissioner before undertaking the authorised warehousing activity.
ii) None of the items which are restricted or prohibited will be allowed to be traded/ warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. 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) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.
v) Further, the applicant will submit separate APR for their trading and warehousing service activities and will submit architectural design for earmarking of space for Trading and warehousing activities.
vi) Further, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. vii) Further, the applicant will give an undertaking that none of the items proposed 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. 188.1.5 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 J. B. Singh, Authorised Representative of the firm explained their proposal and informed that they wish to set up a trading and warehousing unit in KASEZ. He further stated that they are CHA at Mundra since last 30 years and now for further expansion of their activities they wish to start trading and warehousing activity.

The Committee noted that some of the items proposed for trading and warehousing are covering several chapters of ITC HS codes and directed the applicant to submit pruned/specific list of items for trading and warehousing.

proposal for trading activity (subject to applicant submitting specific description/ specific list of items along with 08 digit ITC HS codes in respect of items at Sr. No. 2, 4 & 6 of the Agenda) and warehousing service activity except items at Sr. No. 1, 5, 13 & 23 of the proposal/Agenda (subject to applicant submitting specific description/ specific list of items along with 08 digit ITC HS codes in respect of items at Sr. No. 1 to 10, 20 to 22 & 24 and KYC of their clients on whose behalf they will warehouse goods) and subject to standard terms and conditions: -

iii) The items falling under Chapter 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). iv) Further, with respect to traded item viz. Stationery/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. v) vi) 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) ix) items proposed and its raw materials are falling under negative list and are hazardous or require environmental clearance for storage/transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 188.1.6 Application for setting up of a Manufacturing unit in KASEZ by M/s. Being Healthy Foods, HIG 977, Sector-3, Ranjit Avenue, Amritsar, Punjab – 143 001.

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 he is one of the first to start the Rock Salt business in India since 2011 and also working with companies like TATA Ltd. and ITC Ltd. They are already exporting to 23 countries across the globe and their annual turnover is about Rs. 11-12 crores in trading activity and they propose to set up a salt manufacturing unit in KASEZ with production

capacity of 1500 MT per month and raw materials will be imported from Iran, Pakistan, Poland, etc.

proposal for setting up a manufacturing activity subject to standard terms and conditions as under: -

i) Any restrictions on import/export of manufacturing items and its raw materials will apply.
ii) iii) iv) v) items proposed and its raw materials are falling under negative list and if the items are found in negative list, penal action will be initiated against them.

AGENDA ITEM NO. 188.1.7 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 noted that some of the items proposed for warehousing are covering several chapters of ITC HS codes and directed the applicant to submit pruned/specific list of items for warehousing.

proposal for trading activity and warehousing service activity except items at Sr. No. 1 of the warehousing list in the Agenda and subject to

applicant submitting specific description/specific list of items along with 08 digit ITC HS codes in respect of items at Sr. No. 3, 5 to 8 and KYC of their clients on whose behalf they will warehouse goods and subject to standard terms and conditions: -

i) The approval is subject to the condition that the applicant should seek a prior approval of any additional items they intend to warehouse and submit KYC details of clients to the Office of the Development Commissioner before undertaking the authorised warehousing activity.
ii) allowed to be traded/ warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. iii) The items falling under Chapter 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). iv) Further, with respect to warehoused item 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. v) vi) 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) ix) items proposed and its raw materials are falling under negative list and are hazardous or require environmental clearance for storage/transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 188.1.8 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. He further stated that they are into import export in trading activity in Surat since last 12 years.

The Committee noted that some of the items proposed for trading and warehousing are sensitive in nature and directed the applicant to submit pruned/specific list of items for trading and warehousing which are not sensitive.

defer their proposal with direction to the applicant to submit pruned/ specific list of items for trading and warehousing.

AGENDA ITEM NO. 188.1.9 Application for setting up of a Manufacturing and Warehousing Service unit in KASEZ namely M/s. San Enterprises, Shed No. 379, AS-IV Type, Sector-IV, Kandla Special Economic Zone.

A proposal has been submitted by M/s San Enterprises, KASEZ for setting up a unit in Kandla SEZ for Manufacturing and Warehousing Service activity.

The Committee noted that the applicant 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 would not be permitted till the relevant compliance issues are resolved.

defer their proposal.

AGENDA ITEM NO. 188.1.10 Application for setting up of a Trading and Warehousing unit in KASEZ namely M/s. M M International, NU-4, E-140, Sapna Nagar Main Road, Gandhidham.

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

Shri Suleman Pathan, Proprietor of the firm explained their proposal. Shri Pathan stated that they are doing business of hardware & fibre work in Gandhidham. He further stated that their proposal was deferred in the 186th UAC meeting with direction to submit source of funds/financial strength/net worth of the Proprietor and now they have submitted the net worth certificate of the proprietor.

The Committee noted that the applicant has requested for warehousing of plastic items apart from other 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 would not be permitted till the relevant compliance issues are resolved.

The Committee also noted that item at Sr. No. 2 proposed for trading and items at Sr. No. 4, 5, 6 & 7 proposed for warehousing are covering several chapters of ITC HS codes and directed the applicant to submit pruned/specific list of items.

proposal for trading activity (subject to applicant submitting specific description/specific list of item along with 08 digit ITC HS codes in respect of items at Sr. No. 2) and warehousing service activity except items at Sr. No. 1, 2, 8 & 9 of the proposal/Agenda (subject to applicant submitting specific description/ specific list of items along with 08 digit ITC HS codes in respect of items at Sr. No. 4, 5, 6 & 7 and KYC of their clients on whose behalf they will warehouse goods) and subject to standard terms and conditions: -

ii) allowed to be traded/ warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. iii) The items falling under Chapter 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). iv) Further, with respect to traded item viz. Stationery/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. v) vi) 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) ix) items proposed and its raw materials are falling under negative list and are hazardous or require environmental clearance for storage/transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

188.2 REQUEST FOR BROADBANDING/ITEM ADDITION

AGENDA ITEM NO. 188.2.1 Request for addition of warehousing service activity in their existing Letter of Approval No. 19/2019-20 dated 17.01.2020 dated 17.01.2020, for manufacturing and trading activity, as amended issued to M/s Anandini Warehousing & Foods LLP, KASEZ.

M/s. Anandini Warehousing & Foods LLP, KASEZ is an approved unit for manufacturing activity of Pan Masala, Guthka, Tobacco, etc and trading activity of Kattha, Catechu, Tobacco, etc. vide Letter of Approval No. 19/2019-20 dated 17.01.2020, as amended.

Now the said unit has requested for addition of warehousing activity in their LoA.

Shri Prakash Kaknani, Partner of the firm explained their proposal. Shri Kaknani informed that they are into manufacturing of tobacco products and due to Covid-19, export of manufactured products have been slowed down and now they are in process of getting orders for exports. He further stated they wish to include warehousing activity in their existing LoA.

proposal for addition of warehousing service activity except items at Sr. No. 10 & 11 of the proposal/Agenda (subject to unit submitting specific description/specific list of items along with 08 digit ITC HS codes in respect of item at Sr. No. 1, 7 & 8 and KYC of their clients on whose behalf they will warehouse goods) for the proposed goods in their existing LoA subject to the following standard terms and conditions:

i) The approval is subject to the condition that the applicant should seek a prior approval of any additional items they intend to warehouse and submit KYC details of clients to the Office of the Development Commissioner before undertaking the authorised warehousing activity.
ii) allowed to be warehoused 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 & 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). iv) 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. v) 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.
vi) vii) The above permission is also subject to further condition that the unit shall maintain separate accounts for manufacturing

and warehousing service activity and earmark separate space for both the activities.
viii) Further, the applicant will submit separate APRs for their manufacturing and warehousing service.
ix) Further, the applicant will maintain separate stock register for manufacturing and warehousing service which will be subject to regular checking by the KASEZ customs authorities. x) xi) 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. 188.2.2 Request of M/s Aum Solvchem, KASEZ for addition of item in their warehousing service activity and Trading activity in their existing LoA.

M/s Aum Solvchem is an approved unit with LoA No. 14/2019-20 dated 19.12.2019, as amended, for trading activity subject to certain terms and conditions enumerated in the aforesaid Letter of Approval. Their LoA was further broad-banded vide this office letter dated 09.11.2020 for addition of warehousing activity for 29 items.

Now the said unit has requested for addition of one item in their LoA for warehousing service activity and trading activity.

Shri Harpal, Commercial Manager of the firm explained their proposal. Shri Harpal stated that they are receiving enquiry for trading and warehousing of one item and hence they have requested to add the same in their trading and warehousing activity.

The Committee asked the representative of the unit as to whether the item proposed require storage licence and Fire NOC. In reply, Shri Harpal stated that there is no requirement of storage licence for the proposed item and they already have NOC for fire safety.

proposal for addition of item in trading activity and warehousing service activity in their existing LoA subject to no DTA sale of the proposed item and also subject to standard terms and conditions: -

i) allowed to be traded and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. This clause will have overriding effect for any approval granted in LoA now or before. ii) iii) iv) 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 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. 188.2.3 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 addition of items under Trading activity.

The Committee noted that request of the unit was considered in the last UAC and the Committee had decided to defer the proposal with a direction to first examine the issue.

defer the proposal and directed the Development Commissioner office to first examine the request of the unit on file and then submit the proposal of the unit before the Committee for consideration of the same.

AGENDA ITEM NO. 188.2.4 Addition of Items under Trading Activity - Request of M/s KKP Petchem Pvt. Ltd., KASEZ.

M/s KKP Petchem Private Limited, KASEZ is an approved unit for Trading Activity and has been issued with LoA No. KASEZ/IA/28/2009-10 dated 25.01.2010 as amended subject to certain terms and conditions enumerated in the aforesaid Letter of Approval, as amended.

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

Shri Anand Mehta, Authorized Representative of the company explained the proposal. Shri Mehta stated that they are in KASEZ since last 10 years in chemical business and now they wish to add two items in their trading activity. He further stated that the items proposed for trading activity are industrial use items which are used in paints/plywood industry which they will do drumming and the said items will be procured from local market and also will be imported. The export market of proposed traded items will be Middle East, Iran, Africa, etc. The proposed traded items will be for export purpose only.

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

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

AGENDA ITEM NO. 188.2.5 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 one item in their LoA for trading activity.

Shri Anand Mehta, Authorized Representative of the company explained their proposal. Shri Mehta stated that they are a multinational company having its head office at Spain and now they wish to add one item in their trading activity. He further stated that the item proposed for trading activity will be exported to South East Asian countries.

proposal for addition of item in trading activity (subject to unit submitting specific description of item) 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. This clause will have overriding effect for any approval granted in LoA now or before. ii) iii) The items falling under Chapter 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). iv) v) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities.

vi) Further, the unit will give an undertaking that none of the items 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. 188.2.6 Request for addition of Trading activity in their existing Letter of Approval No. KASEZ/IA/03/2019-20 dated 23.05.2019 for manufacturing activity, as amended issued to M/s Universal Confectionary and Food Products Pvt. Ltd. (Unit-II), KASEZ

M/s Universal Confectionary and Food Products Pvt. Ltd. (Unit-II), KASEZ is an approved unit for Manufacturing Activity of Double Edged Shaving Blades vide LoA No. KASEZ/IA/03/2019-20 dated 23.05.2019, as amended from time to time.

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

Shri Anand Mehta, Authorized Representative of the company explained their proposal. Shri Mehta stated that they are in KASEZ for manufacturing of Double Edged Shaving Blades and now they wish to include trading activity in their existing LoA. He further stated that for the proposed trading items, 80% of the traded items will be procured from India and 20% will be imported.

proposal for addition of 4 items as per agenda in their 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. This clause will have overriding effect for any approval granted in LoA now or before. 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) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. vii) Further, the unit will give an undertaking that none of the items 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. 188.2.7 Request of M/s. Sun Products, KASEZ for Broad-banding of additional items in manufacturing activity in their existing LoA of manufacturing activity.

M/s. Sun Products, KASEZ is an approved unit for manufacturing activity of Pan Masala, Pan Masala containing tobacco-Guthka, Zarda and Khaini vide Letter of Approval F.No. KASEZ/IA/012/2013-14/6247 dated 18.09.2013, as amended.

Now the said unit has requested for broad banding of their LOA in manufacturing activity.

Shri Anand Mehta, Authorised Representative of the firm explained their proposal. Shri Mehta stated that they are in KASEZ for manufacturing and export of Pan Masala, Gutkha & Zarda etc. and now they wish to include additional items such as white tobacco and other products in their manufacturing activity as they are receiving enquiries from European countries for white tobacco as it contains less tobacco contents. He further stated that the raw material viz. Nicotine will be imported and the rest of the raw materials will be procured locally.

proposal for addition of 05 items in manufacturing activity in their existing LoA subject to standard terms and conditions:-

i) Any restrictions on import/export of manufacturing items and its raw materials will apply.
ii)

iii) iv) No DTA sale is allowed for the proposed manufactured items. v) vi) items proposed and its raw materials are falling under negative list and if the items are found in negative list, penal action will be initiated against them.

AGENDA ITEM NO. 188.2.8 Addition of new items in their LoA for Trading and Warehousing Service Activity – Request of M/s. Star World, KASEZ.

M/s. Star World, KASEZ is an approved unit for Trading and Warehousing service activity in Kandla Special Economic Zone vide Letter of Approval No. KASEZ/IA/17/2022-23 dated 28.11.2022.

Now the said unit has requested for addition of new items in their LoA for Trading and warehousing service activity.

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.

proposal for addition of items in trading and warehousing service activity except items at Sr. No. 2 & 3 of the proposal/Agenda 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) 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. 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.
vii) Further, the applicant will maintain separate stock register for trading and warehousing service which will be subject to regular checking by the KASEZ customs authorities. viii) ix) items proposed above are falling under negative list and are not hazardous or require environmental clearance for storage/ transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

188.3 MISCELLANEOUS ITEMS

AGENDA ITEM NO. 188.3.1 Intimation for change in name of the company from M/s FURNACE FABRICA INTERNATIONAL LTD, KASEZ to M/s. FF INTERNATIONAL LIMITED.

M/s Furnace Fabrica International Ltd, KASEZ is an approved unit for manufacturing activity vide Letter of Approval No. KASEZ/IA/10/2008- 09/8575 dated 22.09.2008, as amended. The LoA of the unit is valid upto 30.05.2025.

Now the said unit has intimated that their company’s name stands changed from “FURNACE FABRICA INTERNATIONAL LTD” to “FF INTERNATIONAL LIMITED” with effect from 15.12.2022. The unit has submitted the copy of ‘Certificate of Incorporation pursuant to change of

name” dated 15.12.2022, ROC documents pursuant to change of name, copy of PAN of the company, details of Directors of the company and copy of GSTIN of the company. Further, they have stated that there is no change in directors of the company.

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

approve and take on record the proposal of change in the name of the unit from “FURNACE FABRICA INTERNATIONAL LTD” to “FF INTERNATIONAL LIMITED” subject to fulfilment of conditions as stipulated vide Instruction No. 109 dated 18.10.2021and unit is directed to submit the undertaking that if there is any case or inquiry is pending against them from any other Govt department/other agencies or otherwise.

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

AGENDA ITEM NO. 188.3.2 Intimation for change in constitution of M/s Neutec International, KASEZ

M/s. Neutec International is an approved unit for trading and warehousing activity in KASEZ. The unit has been granted Letter of Approval No. 13/2018-19 dated 12.09.2018 as amended and is valid up to 07.09.2027.

Now the said unit has intimated regarding change in constitution from proprietorship to partnership. They have submitted copy of notarized partnership deed dated 20.01.2023 alongwith their application. Further, the unit has also submitted copy of Form-G issued from Registrar of Firms, Gandhidham regarding constitution of partnership firm.

take on record the proposal of change in constitution from proprietorship firm to Partnership 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. 188.3.3 Intimation of change in Partnership deed of M/s Kutch Polymers, KASEZ.

M/s Kutch Polymers, KASEZ is an approved unit for manufacturing of All types of reprocessed plastic raw material in granules, Agglomerates, shredding, grinding pieces, crushing chips form, lumps and chunks, etc. in Kandla Special Economic Zone vide Letter of Approval No. FTZ/IA/1689/97/10487 dated 27.01.1998, as amended.

Now the said unit has intimated regarding change in partners of the firm wherein one partner has retired from the firm and submitted copy of supplementary partnership deed of Retirement dated 27.12.2021. Further, the unit has also submitted copy of Form-G issued from Registrar of Firms, Ahmedabad City, Ahmedabad regarding change in partnership deed.

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, updated KYC and IT returns of existing partners 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. 188.3.4 Permission to warehouse goods on behalf of DTA Client – Request of M/s. Amrin Impex Pvt. Ltd., KASEZ, Gandhidham.

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

The Committee further noted that their request for change in Directors was taken up for discussion in the last UAC and the Committee decided to 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.

defer their proposal with direction to the Development Commissioner office to first examine the space issue of the sister concern unit to be utilized by this unit for authorised operation.

AGENDA ITEM NO. 188.3.5 Permission to warehouse goods on behalf of DTA client/Foreign Client - Request of M/s. Shriji Overseas, KASEZ.

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

The Committee further noted that a case has been booked by KASEZ Customs for mis-declaration and the same has been adjudicated by Kandla Customs.

defer their proposal with direction to the Development Commissioner office to first initiate proceedings against the unit under the SEZ Act/Rules read with FTDR Act and after the adjudication process is completed then only permit the unit for additional items in warehousing activity.

AGENDA ITEM NO. 188.3.6 One time permission for export of used/second hand shoes accumulated out of segregation of used & worn clothing – Request of M/s. U.S. Clothing India Pvt. Ltd., KASEZ.

M/s. U.S. Clothing India Pvt. Ltd., KASEZ is approved unit for manufacturing of Reprocessing, Sorting, Grading, Cutting, Mutilation, etc. of Used Garments/Textiles/Clothes/Used Clothing/Consumer Products and scrap (other than plastic scrap) vide LoA No. KASEZ/IA/1865/2001/2128- 33 dated 31-12-2001, as amended from time to time.

Now the said unit has requested to grant them one time permission for export of 120 MT of used/second hand Shoes. The unit has stated that during the period of last many years of import of used clothing, Worn/Second Hand Shoes has been accumulated during the process of segregation of Worn Clothing CTH of Worn & Second Hand Shoes also fall under ITC (HS) Code 6309 0000 viz. Worn clothing and other worn articles. The unit has requested to grant them one time permission to Export 120 MT of Worn/Used Shoes under Rule 34 of SEZ Rules, 2006.

Shri Saddam, Director of the company explained their proposal. Shri Saddam explained that they have received worn/second hand shoes mixed with worn/used clothing. These have accumulated during the process of segregation of worn clothing during last 15 years and they propose to re- export the shoes as now they have buyer in UAE/Afghanistan. He further stated that the sole of shoes will be recycled by their buyers and requested to allow them export of worn/used Shoes.

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 120 MT of used/second hand Shoes (subject to inspection of unit to ascertain the exact quantity of worn/second hand shoes lying in the premises of the unit and subject to unit submitting buyer’s details) subject to the condition that the unit will submit Proof of Export to the office of the Development Commissioner, KASEZ.

AGENDA ITEM NO. 188.3.7 Request for change in description of item in manufacturing activity – Request of M/s U.S. Clothing India Private Limited, 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 Broad- banding 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.

Shri Saddam, Director of the company explained their proposal. Shri Saddam stated that they have broad-banded manufacturing activity of Fibre in their LoA in 2020 and are also exporting the said item Fibre, however, due to change in description in new Customs tariff, the KASEZ customs officers are insisting for change in description as per existing tariff viz. Cotton Waste (including Yarn Waste and Garnetted Stock): Other: - Garnetted Stock and requested for change in description of item in manufacturing activity.

The Committee noted that request of the unit was considered in the last UAC and the Committee decided to defer the proposal with a direction to first examine the issue on file.

AGENDA ITEM NO. 188.3.8 Request for DTA Sale for special projects of overseas clients – Request of M/s. B.V.H. Manufacturing India Pvt. Ltd., KASEZ.

M/s. B.V.H. Manufacturing Pvt. Ltd., KASEZ is an approved unit with LoA No. 06/2019-20 dated 05.08.2019 for manufacturing activity of Cut Wipers, Shoe Components, Bags, etc., as amended, subject to certain terms and conditions enumerated in the aforesaid Letter of Approval.

Now the said unit has requested to allow them DTA sale as their LoA does not permit DTA sale.

Mr. Steven Bethell, Equity Holder of the company explained their proposal. Mr. Bethell stated that some famous international fashion companies have approached Bank & Vogue for new projects in sustainable fashion wherein they will buy cut components from used garments from M/s. B.V.H. Manufacturing India Pvt. Ltd., KASEZ & assemble into apparels, caps, handbags & other fashion accessories at their own factories. These International customers have approached Bank & Vogue, to supply cut components from used garments through M/s. B.V.H. Manufacturing India Pvt. Ltd. KASEZ to their Partner Factories in India. These cut components will be assembled into sustainable fashion products at their Indian Partner Factories & exported out of India. These international customers through their Indian Partner factories will be supporting the Make in India initiative by the Indian Government.

He further stated that they procure raw material from KASEZ units & Haryana which is mutilated rags & cut into components as per the designs approved by the overseas clients and the said mutilated clothes falls under Chapter 63101020 and the process involved is re-manufacturing activity and not re-processing activity.

The Committee noted that the unit has been issued LoA dated 05.08.2019 with a condition that finished goods/entire production shall be 100% physically exported and no DTA sale of any goods/waste will be permitted.

The Committee asked the representative why at the time of their application for setting up manufacturing unit in KASEZ, the Committee did not allow them DTA Sale, Mr. Bethell stated that during that time they planned to export their entire production and now they have been receiving enquiry for DTA sale also and hence they have now requested for permission to allow them DTA sale also.

The Committee noted that the unit has requested for DTA sale of 5 ITC HS Codes, however, they have not submitted specific item list and directed the unit to give specific item list i.e. which item falls under which ITC HS Code. The Committee further noted that 2 of the ITC HS Codes requested are not approved in their LoA also.

The Committee also directed the unit to check the possibility of supply of their finished goods under Advance Authorisation scheme under the Foreign Trade Policy.

defer the proposal and further directed the Development Commissioner office to first examine the request of the unit on file.

AGENDA ITEM NO. 188.3.9 Inclusion of “Transport of Goods in Vessel” as default Authorised Services for units in SEZs so that SEZ units may continue to avail zero- rated supply of services without paying IGST

The Committee noted that Kandla SEZ Industries Association vide its email dated 25.01.2023 has forwarded DOC vide their letter F. No. K- 43013(13)/5/2022-SEZ dated 24.01.2023 addressed to DC, KASEZ has referred to EPCES’s letter No. EPC/SEZ/AM-22/F-14 NSEZ/Cus/Tech/ 03/2021 dated 04.10.2021 referring to Kandla SEZ Industries Association’s representation on inclusion of “Transport of Goods in Vessel” and further stated that the UAC is empowered to approve any additional input services if the same is connected to authorised operations of unit. DOC has advised that the matter of inclusion of “Transport of Goods in Vessel” may please be placed before UAC for its consideration as per merits of the case.

The Committee further noted that the Inclusion of “Transport of Goods in Vessel” as default Authorised Services for units in SEZs will be applicable to all the SEZs and not for any particular SEZ as the DOC letter dated 24.01.2023 is addressed to only DC, KASEZ and not to other DCs. Further, the said DOC letter has also not been received in DC’s office.

defer the proposal and directed the Development Commissioner office to first examine the issue on file and if need be write to DOC and other SEZs for clarification.

AGENDA ITEM NO. 188.3.10 Ratification of SCNs issued to Kandla SEZ units

The Approval Committee ratified the following Show Cause Notices issued by Development Commissioner, KASEZ and authorised the Development Commissioner, KASEZ to adjudicate the show cause notices issued: -

Sr. No. Name of the Unit Show Cause Notice No. & Date Issue in brief
1. Naman Marketing KASEZ-IA1/6/2022-SEZ- KANDLA dated 30.12.2022 Customs Audit Objection - Parallel

SCN for contravention of provisions of SEZ Act and SEZ Rules 2. Jay FE Cylinders Ltd. KASEZ/IA/050/2006- 07/Vol.I dated 30.12.2022 Non-achievement of positive NFE during the 5 year block period ending 2021-22 3. Royal Petro Oil Refinery LLP KASEZ/IA/006/2013-14 dated 30.12.2022 Audit Objection - Import of Used Oil - contravention of provisions of SEZ Act and SEZ Rules

Rule 18(4)(d)

Hindustan Oils Industries KASEZ/IA/006/2013-14 dated 30.12.2022 Audit Objection - Import of Used Oil - contravention of provisions of SEZ Act and SEZ Rules

Rule 18(4)(d)

Narayan Marine Tech Pvt. Ltd. KASEZ-IA1/11/2022-SEZ- KANDLA dated 30.12.2022 Contravention of provisions of SEZ Act and SEZ Rules

Rule 18(4)(d) - DTA Sale

AGENDA ITEM NO. 188.3.11 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. He further informed that he has already acquired sufficient space in the e- auction held on 21.02.2023 and requested to permit them additional items for warehousing.

The Committee after due deliberation decided to permit the additional items, except items at Sr. No. 2, 3, 4, 5, 6, 8, 11, 12 & 14 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) allowed to be 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) 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 iii) iv) v) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. vi) items proposed falls under negative list or is hazardous or requires environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

SUPPLEMENTARY AGENDA ITEM NO. 188.4.1 Application for setting up of a Warehousing unit in KASEZ namely M/s. Soobaika Warehouse LLP, Plot No. 371, Sector – 1A, Gandhidham – Kutch – 370 201.

A proposal has been submitted by M/s Soobaika Warehouse LLP, Gandhidham for setting up a new unit in Kandla SEZ for Warehousing activity.

Shri Anand Mehta, Authorised Representative of the firm explained their proposal and informed that they wish to set up a warehousing unit in KASEZ. He further stated that the partners of the firm are based in Gandhidham and funding for the proposed warehousing unit in KASEZ will be made from their own source.

proposal for warehousing service activity (subject to applicant submitting specific description/specific list of items along with 08 digit ITC HS codes in respect of items at Sr. No. 7 to 10 and KYC of their clients on whose behalf they will warehouse goods) and 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 72 & 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). 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) allowed to be warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. v) vi) 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) ix) items proposed and its raw materials are falling under negative list and are hazardous or require environmental clearance for storage/transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

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 cancellation including action 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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