Amendments to Gem and Jewellery Sourcing in SEZs: Govt notified Special Economic Zones (Amendment) Rules, 2024

By:

The Ministry of Commerce and Industry has issued a Notification No. G.S.R. 105(E). dated February 05, 2024, amending the Special Economic Zones Rules, 2006 (“the SEZ Rules”), under section 55 of the Special Economic Zones Act, 2005 (“the SEZ Act”). The amendment, named the Special Economic Zones (Amendment) Rules, 2024, introduces a change to sub-rule (6) of rule 27 of the SEZ Rules.

Relevant Rules:

Rule 27 of the SEZ Rules:

“27.  Import and Procurement:-

(1) *****

(2) *****

(3) *****

(4) *****

(5) *****

(6) A gem and jewellery Unit may also source on outright purchase basis or loan basis, gold or silver or platinum through the Nominated Agencies “or free of charge from foreign buyer and Export thereof to the same foreign buyer” and where such sourcing is on loan basis, the same shall be subjected to the conditions applicable to such transactions under the provisions of the Foreign Trade Policy in force:

Provided that the conditions applicable to loan transaction shall not apply where the Unit converts such loan into outright purchase by paying the outstanding loan amount and interest within the period for export prescribed under the Foreign Trade Policy applicable to the loan transaction.

The Notification can be accessed at: https://www.a2ztaxcorp.com/wp-content/uploads/2024/02/Special-Economic-Zones-Amendment-Rules-2024-05.02.2024.pdf