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Core Purpose

Notification of the Special Economic Zones (Fourth Amendment) Rules, 2023, substituting rule 43A of the Special Economic Zones Rules, 2006 to permit hybrid working by SEZ unit employees.

Detailed Summary

The Department of Commerce, Ministry of Commerce and Industry, issued G.S.R. 824(E) on 7 November 2023 under section 55 of the Special Economic Zones Act, 2005 (28 of 2005), titled the Special Economic Zones (Fourth Amendment) Rules, 2023, effective from the date of publication. It substitutes rule 43A of the Special Economic Zones Rules, 2006 to permit SEZ units to allow specified categories of employees (IT/ITeS staff, temporarily incapacitated employees, travelling employees, and offsite employees) to work from any location outside the Special Economic Zone, subject to the facility remaining valid up to 31 December 2024, prior email intimation to the Development Commissioner, maintenance of records of permitted employees for verification, continued unit operation from its approved premises, work restricted to the unit's approved services and project, accounting of export revenue by the unit, and surrender of identity cards when an employee ceases hybrid work. Units may also allow duty-free equipment (laptops, desktops, electronic equipment) to be taken outside the SEZ without payment of duty or IGST on a temporary basis commensurate with the hybrid-work period, subject to proper record-keeping and payment of duty if goods are not returned in time. The principal Special Economic Zones Rules, 2006 were notified vide G.S.R. 54(E) dated 10 February 2006 and were last amended vide G.S.R. 481(E) dated 4 July 2023. The notification is filed under K-43013(12)/1/2021-SEZ and signed by L. Satya Srinivas, Additional Secretary.

Full Text

7021 GI/202 3 (1) रजिस्ट्री सं. डी.एल.- 33004/99 REGD. No . D. L. -33004/99 EXTRAORDINARY PART II —Section 3 —Sub-section ( i) PUBLISHED BY AUTHORITY No. 644] NEW DELH I, TUES DAY , NOVEMBER 7, 2023/ KARTIKA 16, 1945 CG-DL-E-07112023-249940 MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce ) NOTIFICATION New Delhi, the 7th November, 2023 G.S.R. 824(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. Short Title and Commencement (1) These rules may be called the Special Economic Zones (Fourth Amendment) Rules, 2023. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Special Economic Zones Rules, 2006, for rule 43A, the following rule shall be substi tuted, namely : - ‘43A. Hybrid working. - (1) A Unit may, as per its requirements, permit its employees, specified in sub -rule (2), to work from any place outside the Special Economic Zone in accordance with this rule. (2) The following employees are covere d under sub -rule (1), - (i) employees of Information Technology Units and Information Technology enabled services; (ii) employees, who are temporarily incapacitated; (iii) employees, who are travelling; and (iv) employees, who are working offsite. (3) The permission granted under sub -rule (1) shall be applicable up to the 31st December, 2024. (4) The facility for hybrid work may cover all the employees of the Unit. (5) Where a Unit permits its employ ees for hybrid work under this rule, it shall intimate the same to the Development Commissioner through an e -mail on or before the date on which the facility for hybrid work is permitted. (6) The Unit shall not be required to submit the lists of employees who are allowed hybrid work but shall maintain the lists of employees who have been permitted hybrid work in the Unit and it shall be submitted for verification whenever is required by the Development Commissioner. (7) The hybrid work facility shall b e admissible if the Unit continues to operate from the premises as per their letter of approval. (8) The work to be performed by the employee permitted hybrid work under this rule shall be as per the services approved for the Unit, and the work is related to a project of the Unit. (9) The Unit shall ensure export revenue of the resultant products or services to be accounted for by the Unit to which the employee is permitted for hybrid work. (10) Where an employee ceases to be part of the project of the Un it, the employee shall be relived from the Unit and the Unit shall surrender the identity card as per the provisions of sub -rule (2) of rule 70. (11) The Unit may provide to an employee duty -free goods, including laptop, desktop, and other electronic equi pment needed by the employee for hybrid work and the same shall be allowed to be taken outside the Special Economic Zone without payment of duty or integrated goods and services tax on temporary basis: Provided that the Units while opting for hybrid work facility shall ensure that such duty -free goods are duly accounted for in the appropriate records as per the extant rules and are available for verification, if necessary. (12) Notwithstanding anything in sub -rule (1) of rule 50, the temporary removal of such duty -free goods shall be allowed for a period commensurate with the validity of the facility for hybrid work: Provided that if a Unit fails to bring back the duty -free goods into the Special Economic Zone within the period specified in this sub -rule, the duty applicable on such goods shall be paid by the Unit. (13) In this rule, - (a) the expression “employees” shall include all persons employed on the rolls of the Unit or under a direct contract or where the Unit is the principal employer under a con tract with another organisation where such persons are expected to report on a day -to-day basis for work to the Unit and the Unit administers the control on their attendance; (b) the expression "Hybrid working" refers to a flexible work model whereby an employer may permit its employees to work from office or from any location outside the employer's office from time to time.’. [F. No. K-43013(12)/1/2021 -SEZ] L. SATYA SRINIVAS , Addl. Secy. Note : The principal rules were published in the Gazette of India, Extraordinary, Part -II, Section 3, 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 481 (E) dated the 4th July, 2023. Uploaded by Dte. of Printing at Government of India Press, Ring R oad, Mayapuri, New Delhi -110064 and Published by the Controller of Publica tions, Delhi -110054.

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