Guidelines for FTWZ/Warehousing Units in SEZs

Government of India Ministry of Commerce & Industry Office of the Development Commissioner SEEPZ Special Economic Zone Andheri (E), Mumbai - 400096 gnaneri (cl, murnoai

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Subject: Guidelines for FTWZ/Warehousirrg

Units in SEZs-reg. In pursuance of the Instruction No.ll7 issued vide F.No.K-43022/24/2024-SEZ dated 24.09.2024 by Govt. of India, Ministry of Commerce & Industry, Department of Commerce, SEZ Division, New Delhi, the following guidelines/order are issued for compliance by the Officers and the FTWZ/Warehousing Units:- (i) In respect of New Units application the concerned ADC will obtain the KYC details

of the
applicant company

as well
as the
clients.

Aadhaar based authentication for Indians and Passport based authentication for foreign clients may be obtained and the detailed note may be submitted before the DC and thereafter before Approval Committee. In respect of existing Units, concerned

ADC shall
obtain the following details through Specified Officer for verification and submit to DC office within one month. Copy of Aadhar Card Copy of PAN Card ITR (Company & Director/ Partners)-last 03 Financial years. GSTR 9 (Annual GST Return) last 03 Financial years. Copy of IEC Past expertise in the commodity. Any Foreign Exchange pending beyond permissible limit of RBI. Page I of 4

(ii) The Warehousing Unit shall submit the KYC details as mentioned in 1 above of their
clients
to the DC
office
and
Specified

Officer

before
cornmencing

first transaction. The Specified Officer with his comments forward it to DC office. The concerned ADC shall scrutinized the same and
submit the report before Competent Authority within 15 days time. In case no response is received to the unit the same shall be treated as deemed accepted by this office. (iii)
The FTWZ unit shall ensure that their facilities are under CCTV surveillance with

storage of data for at least
one year.
The
DC and
his authorized representatives shall be given
access to
the CCTV
footage at any point
of time.
50s
to obtain undertaking from the units
in this behalf and
submit to Development Commissioner, (iv) The FTWZ unit shall corfirm that they have a tamper-proof ERP/SAP system and no FTWZ/ Warehousing Unit shall be allowed without such system. DC and hiS authorized representatives

should be given access to view the system and also seek specific reports from this system.

The Officers authorized shall periodically inspect/check the units based on Risk Management. 50s to obtain undertaking from existing units in this behalf and within one month shall submit to Development

Commissioner. For new units such
undertaking shall
be submitted along-with application. (v) It shall be ensured that manual entries/processing of Customs clearances is strictly prohibited and
responsibility

should be fixed
on any
officer

violating the same.
Further,

it is noted
that
SEZ-Online

and ICEGATE

are already interlinked for trans-shipment

for requisite cargo movements

Accordingly, it is mandatory on both sides to enable cargo clearance only through

designated modules.

Further, the Customs

officers

are to be instructed to access
NIDB regularly while assessing cargo to ensure that the scope for over/under valuation is mitigated. (vi)
The transfer of goods from one FTWZ to another FTWZ should not be allowed except in specific and exceptional cases after consideration by the UAC.

The Specified Officer will send the request of the unit for such transfer with his comments to DC Office within

2 working

days
for
taking

up before
the Approval Committee. Page 2 of 4

(vii)
The following team has been constituted for periodical physical verification of Warehousing Units. (f) JDC, SEEPZ DDC, SEEPZ ADC, In-charge LDC/UDC/Asstt. In-charge One Authorized Officer (Superintendent/ Appraiser) other posted in the concerned FTWZ One Authorized Officer (PO/ Inspector/ EO) other than posted in the concerned FTWZ The ADC/Dealing
Assistance and the Customs officers shall inspect the warehousing units and shall submit the report as per the checklist (attached) based on local risk assessment.

Thereafter, based
on the report Unit shall be visited by DDC/JDC/DC. (viii)

The
unit shall submit the APR as per the timeline prescribed in the SEZ Rule i.e. on or before 30.09.2024. In case of any delay in submission, they shall not be permitted to carry out their Authorized Operation. The
Assistant

Commissioner

(Audit)

shall
take
up
the
matter

with jurisdictional Custom Authorities for periodic audit as per Rule 79 of the SEZ Rule and submit a report to DC on monthly basis. (ix) The Specified Officer shall submit the details of undervaluation/ overvaluation and unscrupulous units to the Development Commissioner on monthly basis so that the same can be also be shared to all the DCs. (xi) The Specified Officer/DDC shall prepare a detail list of high risk/ sensitive cornrnodities being dealt by FTWZ/Warehousing Units so that the same can be regularly reviewed by Approval Committee based on risk perceptions.

Such first list shall be provided by 50s on or before 20.11.2024 to take up the same before UAC & scheduled on 25.11.2024. Thereafter, the said list shall be updated on quarterly basis and
this
will
be a standing

agenda
for
every Approval Committee Meeting. Page 3 of 4

(xii)
The
existing

units
shall
submit

the details
of area
allocated

to them
by the Developer/Co-Developer along-with the map for keeping their goods as well as goods of their clients in the warehouse for longer period and clearance of the same as and
when needed
to avoid
scope of misuse of the facility for malpractices.

The unit shall provide the map
indicating the
area boundary (xiii)

No
subletting

of space
SEZ
units
is permitted

under

SEZ Law.
Appropriate action
will
be initiated

against
the unit
including cancelation of LOA
for violation. (xiv)

The above instructions are to be followed by officers posted in FTWZs, Unit- holders & Clients of units. (xv)
Any difficulties in implementation of the same may be brought to the notice of undersigned. This issues with the approval of Development Commissioner, SEEPZ-SEZ. (CPS
uhan) Joint Development Commissioner SEEPZ-SEZ Page 4 of 4

Checklist for inspection of Warehousing/Trading units of FTWZ l Name of the Unit 2 LOA No. & Date 3 Validity of LOA 4 Authorised

Operation 5 Export/Import/NFE

in last
5 years (Rs. In Crores) Year Export Import NFE 6 Commodities handled 7 Whether APRs duly certified by the Chartered Accountant is submitted within prescribed timeline or not? 8 Whether

any
CAG
Objection

is pending against

the unit
or not? Indicate the details thereof g Whether any
SCN

issued to
the Unit or not?

Indicate the details thereof 10 Whether the
area occupied by the unit

has
been

approved

by
the Approval Committee and submitted the
area

map

to
DC Office/Specified Officer. 11 En'iployment 12 Whether the unit is operating ERP /SAP systems for their operations. 13 Whether the CCTV installed by the unit in the
FTWZs

premises

are operational and
Access has been given to SO or not? 14 Details

of
Foreign

Exchange pending

of
the
unit

and
theit clients. 15 Whether

the unit
has
carried

out n"ianual

customs

clearance

aftex issuance

of
Instruction

No. 117 dated 24.09.2024.

16 Whether the uniti has
sublet

the aCroemamaitpteperovfeo"r \hei'rheAuAtphporri0sVeadl Operation. I j j I j I 17 Whether the unit has submitted the KYC details of their unit as well as the clients to the iDC Office before commencing

first'

transaction

by that client. I j j