SEEPZ SPECIAL ECONOMIC ZONE ANDHERI (EAST), MUMBAI. SUPPLEMENTARY AGENDA FOR MEETING OF THE APPROVAL COMMITTEE FOR SEEPZ-SEZ VENUE :Through Video Conferencing on Webex Application DATE ४30० June, 2022 TIME 211.30 A.M. KRKK AKA IK KKK IKE ERE RRR

MEETING OF THE UNDER THE AEPROVAL COMMITTEE FOR SEEPZ-SEZ COMMITTEE FOR SEEPZ-SEZ UNDER THE COMMISSION ES RMANSHIP___ OF DEVELOPMENT OF DEVELOPMENT COMMISSIONER, SEEPZ-SEZ ON 305 JUNE, 2022. SEEPZ-SEZ ON 307 JUNE 2022. INDEX —————

Supplementary PE Agenda Item No. Agenda Item No. 01 M/s. Jewel Art 2- Application for Mid-term Projections for remaining 3 years 2022-23 to 2024-25 on additional Import | Agenda Item No.02 M/s. BVC Logistics Pvt. Ltd- Application for Broad Banding of Items Agenda Item No.03 M/s. Rosy Blue India Pvt. Ltd- Application for Broad Banding LL of Items है के कक के के के कक के कक के के कई के जज: के कक के के जे जे IO IORI IS IORI ICI Io I lex

OFFICE OF THE DEVELOPMENT COMMISSIONER, SEEPZ SPECIAL ECONOMIC ZONE, GOVT. OF INDIA, ANDHERI (EAST), MUMBAI RREKKREKKRR RIK AGENDA NOTE FOR CONSIDERATION OF APPROVAL COMMITTEE a. Proposal: - Application received from M /s. Jewel Art (Unit-II), Unit no.19 /22, G&J Complex No. II, SEEPZ-SEZ,. For Mid-term Revision for remaining period of 3 years i.e. 2022-293 to 2024-25. b. Specific Issue on which decision of AC is required: - Permission for Mid- term revision projection i.e. Unit no.19 /22, G&J Complex No. II, with Revised Projection for remaining period of 3 years i.e. 2022-23 to 2024-25. c. Relevant provisions of SEZ Act, 2005 & Rules, 2006 /Instruction/ Notification :- Proviso of Rule 19 (2) of SEZ Rules 2006 “Provided that the Approval Committee may also approve proposals for broad banding, diversification, enhancement of capacity of production, change in item of manufacture or services activity if it meets the requirement of Rule 18”, D. Other Information: - M/s. Jewel Art (Unit - ll) has been granted SEEPZ-SEZ/NUS/APL/GJ/33/04- 05/ 2420 dated 10.03.2005 as amended for manufacture & export of Studded Gold Jewellery &Gold, Silver, Or platinum Jewellery, plain or studded with Diamonds / Previous/ Semi- Precious Stones or in Combination etc. at Unit no.19/22, G&J Complex No. II. The unit started its commercial production w.e.f. 10.12.2004. The validity of LOA is upto 31.03.2025. Re | Heading inal a |] No. 1 Name of the Unit M/s. Jewel Art Unit II 2 Present location Unit no.19/22, G&J Complex No. II, 3 >> [०95् eणण.._....... Sq.mtr 4 LOA No. & Date SEEPZ-SEZ/NUS/APL/GJ/33/04- 0S/2420 dated 10.03.2005 as amended

fe Items of Manufacture /Service Studded Gold Jewellery &Gold, Silver, Or platinum Jewellery, plain or studded with Diamonds / Previous/ Semi- Precious Stones or in Combination thereof Date of Commencement of 10.12.2004 6 | Production 7 Validity of LOA [31.08.2025 SSS a Outstanding Rent dues NIL as on 26.06.2022 lo | Labour Dues Nd 10 alidity of Lease Agreement Sublease agreement is registered for the period 01.04.2020 to 31.03.2025 167 both the Units 11 Pending CRA Objection, if any a चलन 12 Pending Show Cause Notice/ eo! Eviction Order/ Recovery Notice/ Recovery Order issued, if an: * Further the unit vide letter dated 08.03.2022 has stated that due to the increased sales, the imports of Raw materials, components, Spares & consumables would also exceed the projected imports during the block 5 years. Hence, they wish to revise their projections for the remaining period of 3 years 1.6. 2022-23 to 2024-25. The details of the mid-term revised projections for remaining period of 3 years. (Figs. Rs. in lakhs) Approved Approved Proposed Projection for Description Projection projection for/Three year 2022-23 to 2024- For five year/Three year 2022-\25 2020-21 to/23 to 2024-25 2024-25 US $ 1 = Rs. 74.35 (Rs. In Lakhs) (Rs. In Lakhs) (Rs. In (US$ 000) Lakhs) FOB value of Exports 8200 6000 45000 60525 Import of Machinery 164 | 1207 225 303 Import of Raw 6560 4800 36000 48420 Material and| components, Spares & Consumables Damage broken & ki । i 2250 3026 Semi furnished jewellery for remaking, remelting, Repairs &| (Third Part

Repatriation ०. dividends and profits| to foreign collaborates a Royalty | Lumpsum fee Know how Design & Drawing fees Payment of technicians foreign| Payment on training o Indian tech. Abroad Commission on export Foreign Travels 45 [| sos” 30 [40 [Amount of interest to | | | |८& | | Po Ibe paid on ECB Any other payment 25 15: 30 40 (Specify details) publicit Total 6794 | 4965 | 38535 | 57829 | re 1406 | 70355 | 6465 8695 It is seen from the above, there is incre projection. The approved and actual export import performance ase in the projection as compared to earlier | Export 7] Import of RM+Spares Import of CG Year Projected ctual Projected {Actual Projected (Actual | 2015-16 | 1500 208.54 [1180 | | 156.71 | 50 | 2.19 | 2016-17 2000 336.50 1570 339.59 50 0.63 2017-18 2500 266.54 [1960 | 184.08 50 4.07 2018-19 3500 2139.15 2750 1648.32 50 | 60.75 | | 2019-20 | 3000 722.76 | 3925 | 484.79 50 | 32.70 | Total 14500 3673.49 11385 2813.49 | 250 | 40.34 NFE status:- Year NFE (Rs. In lakhs) on cumulative basis | 2015-16] Pei: tS | 2016-17 | नील | 2017-18 का 2018-19 609.80 2019-20 पा.“ फऊफ

The proposal of the unit for monitoring of performance was placed before the Unit Approval Committee in its meeting held on 26.08.2021. The Committee in its meeting noted the performance of the unit for the period 2019-20, as unit had achieved the Positive NFE on cumulative basis in terms of Rule 54 of SEZ Rules, 2006. E. ADC’s 4DC’s Recommendation: The proposal of the unit mid-term Projections of 3 years i.e. 2029-23 to 2024- 25 due to increase in the projections on additional import and exports in terms of Rule 19 (2) of the SEZ Rules 2006 is placed before Unit Approval Committee for consideration.

OFFICE OF THE DEVELOPMENT COMMISSIONER, SEEPZ SPECIAL ECONOMIC ZONE, GOVT. OF INDIA, ANDHERI (EAST), MUMBAI KRKKKKKKK KKK AGENDA NOTE FOR CONSIDERATION OF APPROVAL COMMITTEE a) Proposal: - Application received from M/s. BVC Logistics Pvt Ltd., for Broad Banding application of following items :- Sr. Description of the items to be Proposed Capacity No. newly manufactured 01 | Assortment, grading and imaging activities of Cut & Polished Diamond 02 Videography/Photography Processing Services Not Required for Service Unit b) Relevant provisions of SEZ Act, 2005 & Rules, 2006/Instruction/ Notification :- In terms of proviso of Rule 19 (2) of SEZ Rules, 2006, “Provided that the Approval Committee may also approve proposal for broad banding, diversification, enhancement of capacity of production, change in the items of manufacture or service activity, if it meets the requirement of Rule 18”. ०) Other Information: - M/s. BVC Logistics Pvt Ltd, were granted Letter of Approval No. SEEPZ-SEZ/IA- V/BVC/17/2020-21/15204 dated 03.12.2000 as amended for manufacture and export of Transport Services-Freight and related services-CPC Code 748 & 749, other Business Services such as Inventory management Services CPC Code 862, other Processing services-CPC code 741 where housing services including storage Services-CPC Code 742 Services Auxiliary to all modes of Transport-Logistics and related Services, cargo handling Services CPC Code 741. The unit is yet to commence activity. The validity of LOA has been extend upto. 02.12.2022. Sr. | Heading Details No. | 1 | Name of the Unit- M/s. BVC Logistics Pvt Ltd., 2 Location Basement SDF-III 3 LOA No. & Date- SEEPZ-SEZ/IA-I/BVC/17/2020-21/15204 dated 03.12.2020 as amended 4 Authorized Operation- Transport Services-Freight and related services- CPC Code 748 & 749, other Business Services such as Inventory management Services CPC Code 862, other Processing services-CPC code 741 where housing services including storage Services-CPC Code 742 Services Auxiliary to all modes of Transport-Logistics and related Services, cargo handling Services CPC Code 741

2 5 Date of Commencement- Yet to Commence. Confirmation on DCP awaited from SO | | Validity of LOA 02.12.2021 extension granted for period of one year LOA valid upto 02.12.2022 id Execution of BLUT [Yes ७ /(

Existing approved items to be manufactured:- Sr. Description of the items to be Approved Capacity No. manufactured 01 Other Business Services Such as Inventory Management Services CPC Code-862, Order Processing Services CPC Code-862, Customs Clearance Services CPC Code-741 02 Services Auxiliary to all modes of Transport-Logistics and related Not Required for Service Unit Services, cargo handling Services CPC Code-741 03 | Transport Services-Freight and related Services CPC Code 748 & 749 04 | Warehousing services including storage Services CPC Code-742

» Broad Banding of Items:-

Sr. | Description of the items to be Proposed Capacity No. | newly manufactured 01 Assortment, grading and imaging activities of Cut & Polished Diamond 02 | Videography/Photography Processing Services Not Required for Service Unit Further unit vide letter dated 05.05.2022 has stated the following: seek your permission to commence assortment, grading & Imaging/activities for Cut & Polished diamonds at their service unit-SDF-III CPD Assortment, Grading & Imaging:- activities include: Cut & Polished Diamonds- ITC HS Code-7102 XXXX are imported into the BVC Service unit on behalf of their customers (Indian and/ or Foreign). Cut & polished Diamonds are available in assorted sizes (caratage) and attributes (cut, clarity, brilliance). These are required to be graded after due sorting size-wise/attributes- wise.

3 Tools used- the assortment of CPD is done using either a Sieve method or Eye-Glass method and equipment like Smart-Eye, Imagining equipment etc, are used. Such assorted CPS is sold by their Customers (India and/or Foreign) , to jewellery manufactures based out of SEEPZ-SEZ/other SEZs/DTA Jewellery manufacturing and diamond dealers/Overseas Buyers. Currently, most of the global cut & polished Diamond” assortment, grading & imaging activities are happening overseas-in Europe primarily, where the costs of such operations are quite high. If this activity shifts to India, the transaction cost for such assortment/grading/imaging including the freight & other planning costs will become quite economical, relatively. This also allows employment opportunities and becomes a steady source of foreign exchange earnings. B. 3D Photography & Cataloguing of Doamonds- Photography & Cataloguing of Doamonds-This is another activity that is unit popular in the Diamond industry, which is presently being done elsewhere in the world. This too presents a great opportunity for forex earnings and employment generation, if permitted to be done at their service unit. They at their service unit in SEEZ-SEZ have created a facility to cater to this requirement and the highlights of the same are enumerated as follows;- 1. CPD Assortment, Grading & Imaging- Assortment, Grading & Imaging- a) Dedicated assortment room with a worktable to accommodate up to 8 sorters at a time, along with their equipment. b) Appropriate lighting for the activity. c) Dedicated assortment area. d) Ease of access of the facility in terms of proximity to international airport and public transport services. e) Availability of skilled resources with potential users of this service in close proximity/ within Mumbai. f) Uninterrupted power supply. g) In-house logistics services support- for Customs clearance, international air freight Operations (EXIM), secure transportation from Mumbai Air Cargo Complex- the gateway port for both inbound as well as outbond traffic for this activity Security- a) The entire premise is under continuous CCTV surveillanceQinternally as well as externally. b) In-situ Control Room and 24*7 security deployed with a senior security officer in charge through out. ¢) Continuous surveillance by BVC’s main Control Room as well as in addition to above. d) Multiple CCTV cameras to cover the entire assortment area. e) Well-defined security protocols/ processes including physical frisking and restricted ingress/egress to the diamond assortment area of the facility. f) Locker facilities for all members of the diamond sorting/ assortment activity to place all personal belongings like lunch bags, mobile phones, keys helmets etc outside the assortment area.

i 4 g) No visitor entry permitted to the assortment area. h) Real time access of the assortment area/activity via a CCTV link can be provided to SEEPZ-SEZ/Customs authorities for audit/viewing.

Subsequently unit vide letter dated 15.07.2022 has stated the following unit vide letter dated 15.07.2022 has stated the followin They have not required for additional investment. They had provided for manpower for this activity in their earlier Form F submission and hence no further increase in manpower, similarly, their revenue projections too remain the same as their earlier Form F submission. Further they have submitted the SAC codes for this service activity are as under:- (i) 9988- services by way job work in relation to diamonds failing under Chapter 71 in the first schedule to the customs Tariff Act, 1975 (51 of 1975). (ii) 99838- videography/photography processing services. Also unit vide letter dated iso unit vice letter dated 27.06.2022 has submitted the Form F3 for broad banding of has submitted the Form F3 for broad banding of items The Specified officer vide letter dated 21.06.2022 has furnished their following comments:-

1. The goods to be imported and exported must be examined 100% in order to establish the identity.
2. The unit needs to as how they purpose to establish the identity of finally assorted, graded and imaging activity goods with imported goods, in view of accepted fact, that the imported goods will be a single mixed lot and exported goods will be in multiple packages after above mentioned process.
3. Every import invoice/procurement from domestic tariff area and export invoice of cut & polished diamond to have specific declaration to the effect that the material supplied is cut & polished diamonds.

Unit has to maintain separate account for import or procurement form domestic tariff area of Cut & Polished Diamonds. 5) In case the made of work is that of a service provider, the unit should not undertake the activity of “Manufacture” as stated in Para 9.31 of the Foreign Trade Policy. Attention is invited to proviso of Rule 19 (2) of SEZ Rules, 2006 which stipulates that “provided that the Approval Committee may also approve proposal for broad banding, diversification, enhancement of capacity of production, change in the items of manufacture or Service activity, if it meets the requirement of Rule 18].”

D) ADC’s Recommendation: The proposal of the unit for Broad Banding of items within the existing projections is placed before Unit Approval Committee for consideration. HRA 8.5 KK 5 5 RKRREE

OFFICE OF THE DEVELOPMENT COMMISSIONER, SEEPZ SPECIAL ECONOMIC ZONE, GOVT. OF INDIA, ANDHERI (EAST), MUMBAI RRKKEARKKKEKKEEK AGENDA NOTE FOR CONSIDERATION OF APPROVAL COMMITTEE a) Proposal: - Application received from M/s. Rosy Blue (India) Pvt Ltd., for Broad Banding application of following items :- Sr. | Description of the items to be Proposed Capacity No. newly manufactured 01 | Laboratory Created/Laboratory within existing Grown/Manmade/Synthetic approved Capacity Diamonds and Gemstones b) Relevant provisions of SEZ Act, 2005 & Rules, 2006/Instruction/ Notification :- In terms of proviso of Rule 19 (2) of SEZ Rules, 2006, “Provided that the Approval Committee may also approve proposal for broad banding, diversification, enhancement of capacity of production, change in the items of manufacture or service activity, if it meets the requirement of Rule 18”. c) Other Information: - M/s. Rosy Blue (India) Pvt Ltd, was granted Letter of Approval No. SEEPZ- SEZ/NUS/APL/GJ/63/99/12550 dated 29.10.1999 as amended for manufacture and export of Plain & Studded Gold Jewellery, Plain & Studded Platinum Jewellery, Plain & Studded Silver Jewellery and Plain & Studded Combination Jewellery Gold of Platinum & Silver etc. The unit has commenced production w.e.f. 01.02.2002 The validity of LOA is upto 31.03.2025. Sr. | Heading Par No. [1 | Name of the Unit- M/s. Rosy Blue India Pvt Ltd., 2 | Unit No. GJ-18, SDF-VII 3 LOA No. & Date- SEEPZ-SEZ/NUS/APL/GJ/63/99/12550 dated 29.10.1999 as amended 4 Authorized Operation- Plain & Studded Gold Jewellery, Plain & Studded Platinum Jewellery, Plain & Studded Silver Jewellery and Plain & Studded Combination Jewellery Gold of Platinum & Silver ete 5 Date of Commencement- 01.02.2002 |6 | Validity of LOA [31.03.2025 s~“‘~~~STM 7 Outstanding Rent dues NIL as on 27.06.2022 [8 | Validity of Lease Agreement Sub-lease agreement is registered for 30 years lo | Pending CRA Objection, if any [NI t~—‘“SSCdCY

2 ial Pending Show Cause Notice/] NIL Eviction Order/Recovery Notice/ Recovery Order issued, if any 11. | Monitoring of Performance Yes. The monitoring performance of the unit was placed before the Unit Approval Committee in its meeting held on 26.08.2021. After deliberation, the Approval Committee noted the performance of the unit for the period 2019-20, that the unit has achieved positive NFE on cumulative basis in terms of Rule 54 of SEZ Rules, 2006.

Existing approved items to be manufactured:- g approved items to be manufactured:- Sr. Description of the items to be newly Approved Capacity No. manufactured 01 | Plain & Studded jewellery made out of Gold 450.00 kgs 02 Plain & Studded jewellery made out of 100.00 kgs Platinum 03 Plain & Studded jewellery made out of 200.00 Kgs Platinum 04 Plain & Studded Jewellery made with the 30.00 kgs combination of precious metals viz. gold Platinum and Silver 05 Plain & Studded Palladium Jewellery 1000.00 grams i Assortment grading calibration grouping 20,000.00 carat sizing bagging, recuting of polished diamonds 07 | Assorting grading calibration grouping sizing 20,000.00 carat recuting of rough diamonds "| Import of semi-polished diamonds natural 75,000.00 Pes and for making final cut and polished diamonds | | Import of semi-finished synthetic diamonds 25,000.00 Pcs for making final cut and polished diamonds

Broad Banding of Items:- Sr. Description of the items to be Proposed No. newly manufactured capacity 01 | Laboratory Created/Laboratory Grown/Manmade/Synthetic approved Capacity Diamonds and Gemstones within existing

3

Further unit vide letter dated 21.06.2022 has requested to amend the same in order to cover broad banding activities for Lab Grown Diamonds/Manmade/Synthetic Diamonds and Gemstones and also stated that the following: (0). The application submitted in the prescribed format. (ii) The application is submitted in SEZ online system i.e. Form F3 vide request id- 422200180511. (ili) The current application is for Board Banding services. The services are to be provided for broad banding activity of Laboratory created/Laboratory Grown/Manmade/Systhetic Diamonds and Gemstones. The ITC (HS) code for the proposed item to be board banding is 71049010 (Laboratory- created or Laboratory-grown or manmade or systhetic Diamonds.. (iv) _ This is within their existing approved projection and capacity. (v) There is no further foreign exchange Investment required. The Specified officer vide letter dated 21.06.2022 has furnished their following comments:- 1) The goods to be imported and exported must be examined 100% in order to establish the identity. 2) The unit needs to submit as how they propose to establish the identity of finally assorted, grading, sieving, shading, mapping, planning, marking etc goods with imported goods in view of accepted fact, that the imported goods will be a single mixed lot and exported goods will be in multiple packages after above mentioned process. 3) Every import/procurement from domestic tariff area and export invoice of lab grown diamonds to have specific declaration to the effect that the material supplied is lab grown diamonds. 4) Unit has to maintain separate account for import or procurement from domestic tarrif area of lab grown diamonds. 5) Import/domestically procured consignments of lab grown diamond may be 5 % randomly checked and representative sample may be forwarded to approve agencies as per FTP for testing to verify whether the correctness of description is as declared. Attention is invited to the letter no. SEEPZ-SEZ/IA-I/Policy/46/08-09/3042 dt. 25.03.2009 read with the letter No. SEEPZ-SEZ/IA-I/ Policy/46/2008-09 dated 25.09.2019 regarding Broad Banding of items listed in Chapter 71 of Customs Tariff wherein it is mentioned that “.... Articles remained classified under sub heading 7113, 7114, 7116, 7117 and 7118 of Chapter 71 of the Customs Tariff (excluding articles of Base metal clad with precious Metals), there is no need to approach the Development Commissioner's Office for Broad Banding permission”.

4 However, when the Articles get classified under 7115 and/or excluded from Chapter 71 by notes under Chapter 71 of Customs Tariff or are articles of base metals clad with precious metal, broad banding permission will have to be obtained Further, the goods classified under the aforesaid tariff heading should be in compliance with Instruction No. 91 dated 28.11.2018 and DGFT Notification No. 43/2015-2020 dated 05.11.2018. Further condition of any Allied At or any other law in Jorce, if required, for the import of raw material for manufacturing of jewellery shall be Julfilled at the time of export". Also Attention is invited proviso of In terms of Para Rule 19 (2) of SEZ Rules, 2006 which stipulates that provided that the Approval Committee may also approve proposal for broad banding, diversification, enhancement of capacity of production, change in the items of manufacture or service activity, if it meets the requirement of Rule 18]. D) ADC’s Recommendation: The proposal of the unit for Broad Banding of items within the existing projections is placed before Unit Approval Committee for consideration. RRR EKER REEKKE EKER EERE ERR