Subject: Letter of Approval to SEZ units – Authorized operations - Clarifications - Reg.

Sir/Madam,

Clarification has been sought by some of the Special Economic Zones as to whether goods required for construction of building for setting up of the Units could also be included in the letter of approval (Form – G) as part of authorized operations.

2. It is hereby clarified that the authorized operations include setting up, operation, maintenance and expansion of the Unit, as approved by the Approval Committee. In fact, this facility was already available under paragraph 7.2 (f) of the Foreign Grade Policy before the Act/Rules came into force. Attention of the SEZs are also drawn to sub-rule (2) of Rules 27 which provides that any question as to whether any goods or services are required for authorized operation or not, shall be decided by the Development Commissioner.

3. This is to clarify the provisions of Rule 27 (2) and Form – G.