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Core Purpose

The Central Government hereby makes the Special Economic Zones (Amendment) Rules, 2025, further to amend the Special Economic Zones Rules, 2006, in exercise of powers conferred by section 55 of the Special Economic Zones Act, 2005 (28 of 2005).

Detailed Summary

The Ministry of Commerce and Industry (Department of Commerce) issued notification G.S.R. 364(E) on June 3, 2025, enacting the Special Economic Zones (Amendment) Rules, 2025, which come into force on their publication date in the Official Gazette. These rules amend the Special Economic Zones Rules, 2006 (principal rules). Key amendments include: in rule 5(2)(a), a new proviso and Explanation are inserted, stipulating that a Special Economic Zone exclusively for manufacturing semiconductors or electronic components (including display module, camera module, battery sub-assemblies, printed circuit board, li-ion cells, mobile/IT hardware, hearables, and wearables) shall have a contiguous land area of ten hectares or more. In rule 7(1), a new proviso allows the Board to relax the condition of encumbrance-free area if mortgaged or leased to the Central Government, State Government, or their authorized agency, with recorded reasons. Rule 18(6)(a) is amended by substituting "shall" with "may". Rule 18(6)(c) is substituted to specify that finished goods shall be exported, transferred to a Customs Bonded Warehouse maintained by an Overseas Entity, supplied to the Domestic Tariff Area with applicable duties, or transferred to a Free Trade and Warehousing Zone Unit maintained by an Overseas Entity in the same or different Special Economic Zone, as per the Overseas Entity's instructions. A new paragraph (E) is inserted after paragraph D in rule 53, stating that for units providing manufacturing services in the semiconductor sector, the value of goods received and supplied free of cost shall be included in Net Foreign Exchange calculations, determined by customs valuation rules. Finally, in Annexure II, against serial no. 3, in column (4), "20 hectares" is substituted with "4 hectares". The principal rules were initially published via G.S.R 54(E) dated February 10, 2006, and last amended by G.S.R. 786(E) dated December 26, 2024.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-03062025-263574 EXTRAORDINARY PART II-Section 3-Sub-section (i) PUBLISHED BY AUTHORITY No. 321] NEW DELHI, TUESDAY, JUNE 3, 2025/JYAISTHA 13, 1947 MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) NOTIFICATION New Delhi, the 3rd June, 2025 G.S.R. 364(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 further to amend the Special Economic Zones Rules, 2006, namely- 1. (1) These rules may be called the Special Economic Zones (Amendment) Rules, 2025. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Special Economic Zone Rules, 2006 (hereinafter referred to as the principal rules), in rule 5, in sub-rule (2), in clause (a), after the proviso, the following proviso and Explanation shall be inserted, namely- "Provided further that where a Special Economic Zone is exclusively set up for manufacturing of semiconductors or electronic components, the contiguous land area shall be ten hectares or more. Explanation. - For the purposes of this proviso, the electronic components include display module sub-assembly, camera module sub-assembly, battery sub-assembly, various types of other module sub-assemblies, printed circuit board, li-ion cells for batteries, mobile and information technology hardware components, hearables and wearables." 3. In the principal rules, in rule 7, in sub-rule (1), after the proviso, the following proviso shall be inserted, namely: "Provided further that the Board may relax the condition of encumbrance free area, in cases where the area is mortgaged or leased to the Central Government or State Government, or their authorized agency on mortgage or for lease, for reasons to be recorded in writing." 4. In the principal rules, in rule 18, in sub-rule (6), – (i) in clause (a) for the word "shall", the word "may" shall be substituted; (ii) for clause (c), the following clause shall be substituted, namely: "(c) finished goods shall be exported out of the country or transferred to the Customs Bonded Warehouse to be maintained by the Overseas Entity or supplied to the Domestic Tariff Area with payment of applicable duties or transferred to the Free Trade and Warehousing Zone Unit to be maintained by the Overseas Entity in the same or different Special Economic Zone as per the instructions of the Overseas Entity;" 5. In the principal rules, in rule 53, after paragraph D, the following paragraph shall be inserted, namely: "(E) For units providing manufacturing services in the semiconductor sector, value of goods received as well as value of goods supplied on free of cost basis shall be included in Net Foreign Exchange calculations and such value shall be determined in accordance with the customs valuation rules, as applicable." 6. In the principal rules, in Annexure II, against serial no. 3, in column (4), for the figures and word "20 hectares", the figures and word "4 hectares" shall be substituted. [F. No. K-43022/150/2024-SEZ ] VIMAL ANAND, Jt. Secy. Note: - The principal rules were published in the Gazette of India, Extraordinary, Part -II, Section3, Sub-section(i) vide notification number G.S.R 54(E) dated the 10th February, 2006 and lastly amended vide notification number G.S.R. 786(E) dated the 26th December, 2024.

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