Special Economic Zones Rules, 2006 (PART-I)
NOTIFICATION DT. 10/02/2006
Special Economic Zones Rules, 2006
 GSR No: (E) In exercise of the powers conferred by section 55
of the Special Economic Zones Act, 2005 (28 of 2005), the Central Government
hereby makes the following rules, namely:-
 CHAPTER I
PRELIMINARY
 1. Short title and commencement.-
(1) These rules may be called the Special Economic Zones Rules, 2006.
(2) They shall come into force on the date of their publication in the Official
Gazette.
2. Definitions.-
(1) In these rules, unless the context otherwise requires, -
(a) Act means the Special Economic Zones Act, 2005 (28 of 2005);
(b) Advance Licence means an Advance Licence issued under Duty Exemption and
Remission Scheme of the Foreign Trade Policy;
(c) Authorised Officer means an Inspector or Preventive Officer or Appraiser or
Superintendent of Customs posted in the Special Economic Zone and authorized by
the Specified Officer to discharge any of his functions under these rules;
(d) Bio Technology Park unit means a unit approved under the Bio-Technology Park
Scheme of the Foreign Trade Policy;
(e)"capital goods" means any plant, machinery, equipment or accessories required
for manufacture or production, either directly or indirectly, of goods or for
rendering services, or for development of Special Economic Zone, including those
required for construction, replacement, modernization, technological upgradation
or expansion and also include material handling equipment, packaging machinery
and equipments, refractories for initial lining, refrigeration equipment, power
generating sets, machine tools, equipment and instruments for testing, research
and development, quality and pollution control system, for use in manufacturing,
construction, mining, agriculture, aquaculture, animal husbandry, floriculture,
horticulture, pisciculture, poultry, sericulture and viticulture, and in the
services sector;
(f) "component" means one of the parts of a sub-assembly or assembly of which a
manufactured product is made up and into which it may be resolved and includes
an accessory or attachment to the component;
(g) "consumable" means any item, (including fuels, high speed diesel oil, light
diesel oil and other such petroleum products) which is required for a
manufacturing process, which may or may not be substantially or totally consumed
during a manufacturing process but does not necessarily form part of the end
product;
(h) custodian means any person referred to in section 45 of the Customs Act,
1962;
(i) Customs Act means the Customs Act, 1962 (52 of 1962);
(j) "drawback" means drawback referred to in the Customs Act, 1962;
(k) Duty Entitlement Pass Book Scheme means the Duty Exemption Pass Book Scheme
framed under the Foreign Trade Policy;
(l) Duty Free Replenishment Certificate means Duty Free Replenishment
Certificate issued under the Foreign Trade Policy;
(m) "Electronic Hardware Technology Park unit means a unit approved in
accordance with the Electronic Hardware Technology Park Scheme framed under the
Foreign Trade Policy;
(n) Export Oriented Unit means a unit approved in accordance with the Export
Oriented Unit scheme framed under the Foreign Trade Policy;
(o) Foreign Trade Policy means the Foreign Trade Policy notified from time to
time by the Central Government under section 5 of the Foreign Trade (Development
and Regulation) Act 1992 (22 of 1992);
(p) Form means the form appended to these rules;
(q) Handbook means the Handbook of Procedures framed under the Foreign Trade
Policy;
(r) Import Trade Control (Harmonized System) Classifications of Export and
Import Items means the items notified from time to time by the Central
Government under section 5 of the Foreign Trade (Development and Regulation)
Act, 1992 (22 of 1992);
(s) infrastructure means facilities needed for development, operation and
maintenance of a Special Economic Zone and includes industrial, business and
social amenities like development of land, roads, buildings, sewerage and
effluent treatment facilities, solid waste management facilities, port,
including jetties, single point moorings, storage tanks and interconnecting
pipelines for liquids and gases, Inland Container Depot or Container Freight
Station, warehouses, airports, railways, transport system, generation and
distribution of power, gas and other forms of energy, telecommunication, data
transmission network, information technology network, hospitals, hotels,
educational institutions, leisure, recreational and entertainment facilities,
residential and business complex, water supply, including desalination plant,
sanitation facility;
(t) Nominated Agency means:-
a) the MMTC Ltd, being a company registered under the Companies Act, 1956 (1
of 1956);
b) the Handicraft and Handloom Export Corporation Limited, being the company
registered under the Companies Act, 1956 (1 of 1956);
c) the State Trading Corporation of India Limited, being the company
registered under the Companies Act, 1956 (1 of 1956);
d) the Projects and Equipment Corporation of India Limited being the company
registered under the Companies Act, 1956 (1 of 1956); and
e) any other agency authorized by the Reserve Bank of India;
(u) raw material" means:-
(a) basic materials which are needed for the manufacture of goods, but which
are still in a raw, natural, unrefined or un-manufactured state; and
(b) any materials or goods which are required for the manufacturing process
(including, catalysts for initial charge), packing material, whether they
have actually been previously manufactured or are processed or are still in
a raw or natural state;
(v) Replenishment Licence means the Replenishment Licence issued under the
Foreign Trade Policy;
(w) section means the section of the Act;
(x) Sector means one or more products or one or more services falling under a
category such as engineering, textiles and garments, pharmaceuticals and
chemicals, handicrafts, gem and jewellery, electronics hardware and software,
including information technology enabled services and biotechnology;
(y) Software Technology Park unit means a unit approved under the Software
Technology Parks Scheme of the Foreign Trade Policy;
(z) "spares" means a part or a sub-assembly or assembly for substitution, that
is ready to replace an identical or similar part or sub-assembly or assembly and
includes a component or an accessory;
(za) Special Economic Zone for multi-product means a Special Economic Zone where
Units may be set up for manufacture of two or more goods in a sector or goods
falling in two or more sectors or for trading and warehousing or rendering of
two or more services in a sector or rendering of services falling in two or more
sectors;
(zb) Special Economic Zone for specific sector means a Special Economic Zone
meant exclusively for one or more products in a sector or one or more services
in a sector;
(zc) Special Economic Zone in a port or airport means a Special Economic Zone in
an existing port or airport for manufacture of goods in two or more goods in a
sector or goods falling in two or more sectors or for trading and warehousing or
rendering of services;
(zd) Specified Officer in relation to a Special Economic Zone means Joint or
Deputy or Assistant Commissioner of Customs for the time being posted in the
Special Economic Zone;
(ze) "status holder means an exporter recognized under the Foreign Trade Policy;
(2) All other words and expressions used in these rules and not defined but
defined in the Act shall have the meanings respectively assigned to them in the
Act.