Public Notice No. 07/2024 - Procedure for Addressing Difficulties in the Management of Bond-Cum-Legal Undertaking (BLUT) in SEEPZ SEZ

Government of India Ministry of Commerce & andustry Office of the Development Commissioner SEEPZ Special Economic Zone Andheri (E), Mumbai

• 400096 ta: www.seepz,gov.in I i-b: dcseepz-mah@nic.in I : 022-28290856/28294700 F.No: SEEPZ-SEZ/ NEWSEZ / POI,ICY/ 62 / 2011-12 / VOI,-II / 13 'f g I I)ated : 09.12.2024 Public Notice no: O I / 2024 Subiect: Procedure for Addressing Difficulties in the Management of Bond-Cum-Legal Undertaking (BLUT) in SEEPZ SEZ The
  Development

Commissioner

has
received

a representation

from

Gem
&, Jewellery units

opcrating in SEEPZ SEZ regarding challenges in the management of the Bond-Cum-Legal Undertaking

(BLUT)

value.

These issues primarily pertain to debits applied during imports in ICEGATE without corresponding credits during exports, causing operational and financial burdens on units. 2.
Similar

issue

has
been
raised

by
trade

and
stakeholdcrs

at FTWZs

in
Open House chaircd by Development Commissioner at JNPA SEZ on 28. 11.2024. 3. The concerns raised by the trade mainly includc: Unbalanced

Debit-Credit

in ICEGATE:

BLUT

values

arc
debited

for duty-free

imports

but

not

credited

during

export,

creating

an unreasonable financial burden. Additional

Bond

Submission:

Exhaustion

of
BLUT

in
ICEGATE necessitates

submission

of
additional

bonds,

causing

delays

and operational hurdles. Rationale for BLUT Adjustments: It is suggested that the BLUT amount should correspond to unutilizcd duty-free goods and the estimated duty foregone on goods required for the next quarter. Clarification

from

Ministry:

The
Ministry

of Commerce

&, Industry has clarified

that

additional

BLUT

should

only
be required

if the
scale of operations cxcccds the initial levels for which the BLUT was submitted. 4.
Legal
Position

on
BLUT

Instructirin

72
dated

30.11.2024

clarified

rule position that, in terms of Rule 22 (1) iv (di there shall be no debit and credit in
the
BLUT

and the
onus

is on
the
unit to maintain

the
accounting

and
to ensure

that

sufficient

bond

amount

is available

at any
point

of time
which shall be monitored on Quarterly/ Annually.

Prevalent Practice in SEZ Online

system

• Thcrc was no debit of bond in SEZ Online

( NSDL)

system and Units used to maintain their BLUT aligned to the projections. 6.
Unlike SEZ
Online, there is a process of
auto debit

of
BLUT

in ICEGATE however,

the
same

is not
auto
credited based

on
the
exports

of the unit and when the Bond is exhausted, further BEs can be filed only after submission of additional bond or re credit by the officer manually. 7.
Though

the

Rules

do
not

prescribe

for
debit

&, credit

mechanism, there

is
a necessity

of crediting

thc

bond

due

to
work

flow

created

on ICEGATE.

Hence,

to
address

these

concerns

it has

been

decided

that, the
re-credit will
be done
by Specified

Officer

on
the
basis

of the
application made by unit along 'w'th the undertaking (as per format attached in Annexure A) without going into further examination of the application. 8.
All units

are
advised to comply with the
above procedure in
a timely manner so as to ensure seamless operations and adherence to SEZ Rules. This

issues

with

the

approval

of the
Zonal

Development

Commissioner, SEEPZ

• SEZ. Dr. Prasad Varwantkar Dy. Development Commissioner SEEPZ SEZ

Annexure-A FORMAT FOR UNDERT AKING FOR BLUT RE CREDIT M/s
(Name of the unit)
having unit at (Address of the unit) have been duly issued
Letter of Approval
(LOA/LOP)
No............................... .........................

dated Valid

from ............

............

To
..................

have

executed Bond

cum
Legal

Undertaking

(BLUT)

and
the samc
was accepted

by
the competent Authorities under the Special Economic Zones Act, 2006 and the rules made therein on On registration of the unit ..... .and

Bond

No. granted by the system (ICEGATE). on ICEGATE, URN No. has

been As per the authorized operation under the LOA and in terms of Rule 22 (1) iv (di we are importing the goods and making exports to meet the obligations.

Further for the purpose of debit of bond amount on import and export obligation against it, We hereby 'orovide the details as under

Bond

Number

Total

BLUT

Duty

foregone (generated

@H aInOunt

anlOunt

On icegate)

importedgoods Forgone

amount

Remaining against

which

BLUT

amount export obligation. to be credited has

been completed We do hereby undertake that, I.
The

declaration made

hcrein may bc
treated

as
declaration under Rule

75 (Self -Declaration) of the SEZ, Rules 2006. 2.
With

best
of knowledge

the
amounts

mentioned

in
the above

table

have
been verified by us and arc true and correct. In case of misrepresentation or default of compliance, the unit .................................. would be solely responsible in terms of Rule 22 (1) iv (d) of SEZ Rules, 2006. Signed and declared on this day of Authorised Signatory Narnc and address of the Unit