A qUARteRly NewSletteR By - EPCES · A qUARteRly NewSletteR By export Promoion Council for eoUs &...

April-June 2014 | EPCES NEWS 1

Vol. 10 No. 1 Apr. - Jun. 2014

A qUARteRly NewSletteR By

export Promotion Council for eoUs & seZs

8G, 8th Floor, Hansalaya Building

15, Barakhamba Road, New Delhi-110001

tel: 011-23329766-69, Fax: 23329770

email: [email protected], [email protected]

website: www.epces.in

www.sezindia.nic.in

CHAIRMAN

P. C. Nambiar

VICe-CHAIRMAN

A. K. Jain

DIReCtoR GeNeRAl

Madhup Vyas

RegioNAl ChAiRPeRsoNs

Rahul Gupta (Noida SeZ Region)

Srikanth Badiga (VSeZ Region)

Nilesh Parekh (Falta SeZ Region)

H.P. Srivastava (SeePZ SeZ Region)

V. Anantharaman (Cochin SeZ Region)

S.P. Hirpara (Kandla SeZ Region)

t.C. thiagarajan (MePZ SeZ Region)

eDItoR: o. P. Kapoor, Dy. DG, ePCeS

Printed & Published by

o. P. Kapoor on behalf of

export Promotion Council for eoUs & SeZs

Published at

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15, Barakhamba Road, New Delhi-110001

and printed at

Tara Art Press Pvt. ltd.

Hans Bhawan

Bahadur Shah Zafar Marg,

New Delhi

ediTiNg & desigNiNg By

iNdiA eMPiRe PUBliCATioNs

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Contents

H.E. Mrs. Deepa Gopalan Wadhwa, Ambassador, Embassy of India, Tokyo, Japan and

Shri Rajeev Kher, Commerce Sercretary lighting the lamp at fair at Tokyo, Japan

nEwS

EPCESEPCES

Pre-Budget consultations meeting with Shri Arun Jaitley ....................... 07

World Free Zones Organization ............................................................... 08

Visit of High Powered Delegation to China .............................................. 10

Tokyo Fair ................................................................................................. 11

Meeting with Shri Pravir Kumar, DGFT .................................................... 14

Taking up contemporary issues ............................................................... 16

Meeting with Commerce Secretary ......................................................... 17

Interaction of EOUs and SEZs on Pre-Budget Proposals .......................... 18

Visit of MBA Students in Noida SEZ ......................................................... 20

L to R : Mr. P.C. Nambiar, Director and Secretary WFZO, Dr. Mohammed Al Zarooni,

Chairperson – WFZO, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice

President and Prime Minister of UAE and Ruler of Dubai, Mr. Luis Pellerano, Vice

Chairperson WFZO and Ms. Rose Hynes, Treasurer WFZO


From the Chairman’s Desk

Dear Exporter Friends,

At the outset, I congratulate Shri Narendra Modi for taking the oath as Hon-ourable Prime Minister of India.

The EOU and SEZ community is fully confident that under his able and dy-namic leadership the country’s exports will reach greater heights and there willbe remarkable growth of economic activities, manufacturing, investments andemployment in the country.

I congratulate Shri Arun Jaitley for taking over as Honourable Minister for Fi-nance. I also felicitate Smt Nirmala Sitharaman on taking over as HonourableMinister of State for Commerce and Industry.

I would like to inform that there are 566 approved SEZs in the country, out ofwhich 388 are notified and 185 are operational. By providing a stable and con-ducive SEZ policy, we should be able to make more SEZs operational, which willresult into a quantum jump in investment, employment generation and export ofgoods and services from SEZs.

Friends, I had the opportunity to highlight the issues of EOUs and SEZs at thepre-budget consultations meeting with Honourable Finance Minister held onJune 6, 2014 in connection with the framing of Union Budget 2014-15. We aresure that new Government at the centre will definitely look into the issues ofEOUs and SEZs, like applicability of MAT on the SEZ developers and SEZ units,exemption from levy of Dividend Distribution Tax and payment of service tax.The details of the same have been published in this issue of EPCES News.

During a meeting with Shri Pravir Kumar, IAS, Director General of ForeignTrade, Ministry of Commerce and Industry held on May 9, 2014, EPCES had sub-mitted its suggestions to DGFT for formulation of Foreign Trade Policy 2014-19.The details have been given in this issue of bulletin.

I have the pleasure to inform you that EPCES in association with FICCI hasarranged an “India Show” – Japan 2014. This will be held alongside INTERPHEXand INPHARMA 2014 at Tokyo International Exhibition Centre, Tokyo, Japan be-tween July 2 and 4, 2014. The “India Show” will provide an opportunity for pub-licising the concept of SEZ scheme abroad and will also provide opportunity tomembers of the council to highlight the facilities and incentives available in SEZsin India before the Japanese businessmen, investors and buyers for attractingvaluable foreign direct investments in SEZ scheme of India.

I am happy to inform you that World Free Zone Organisaton was launched onMay 19, 2014 at Dubai. The details of the same have been published in this bulletin.

I am thankful to all the development commissioners for their whole-heartedsupport for strengthening the council by enrolling new members for the council.

I request all those EOUs and SEZs, who are not members of the council, to en-roll themselves with EPCES as its members. This will help the council in takingup the issues of EOUs and SEZs in an effective manner.

P.C. NambiarChairman


From the Director General’s Desk

Dear Esteemed Member of EPCES,

It is with a sense of honour and privilege that I take upon myself the assignedresponsibility of duties as Director General, Export Promotion Council for EOUsand SEZs (EPCES).

EPCES was set up in 2003 to service the export promotional needs of 100% Ex-port Oriented Units, SEZ Developers and Units and represents over 6000 opera-tional EOUs and SEZs spread all over the country. Exports from EOUs and SEZshave been to the tune of almost Rs. 6 lakh crores in 2013-14.

The exports from SEZs during the year 2013-14 were about Rs.4.94 lakh crores.This sector is providing employment to around 13 lakh people in the countryand includes investments worth about Rs. 3 lakh crores.

Since the inception of SEZ Act and Rules in 2006, 566 SEZs have been grantedformal approval out of which, 388 SEZs have been notified and 185 SEZs are op-erational.

I would request all members and other exporters to send their valuable sug-gestions and to participate in Open House Meets which provide an opportunityfor sharing views & experiences, and to interact with the officials of Central andState Government.

EPCES also intends to organise Road Shows in national and international mar-ket for bringing investments into SEZs and it will continue to organise exportpromotion activities in India and abroad for the benefit of its members.

Madhup Vyas, IASDirector General


he Export Promotion Councilfor EOUs and SEZs (EPCES)participated in a consulta-

tions meeting with Shri Arun Jaitley,Honourable Finance Minister onJune 6, 2014 at New Delhi in connec-tion with the framing of UnionBudget 2014-15. Shri P.C. Nambiar,Chairman EPCES, attended the meet-ing on behalf of the Council. Seniorofficers of the Ministry of Financeand Minstry of Commerce and In-dustry were also present.

Shri P.C. Nambiar, Chairman,EPCES informed that the council rep-resents EOU and SEZ sector whichhas approximately 7000 operationalEOUs and SEZs in different parts ofthe country. The sector contributesone-third to total national exportsand provides employment to morethan 15 lakhs people in the country.He further informed that out of 566formally approved SEZs, 388 havebeen notified and only 185 are in op-eration. These operational SEZs

have shown a remarkable exportgrowth of 21 times that is from Rs 2,840 crore in the financial year 2005-06 to Rs 4, 94,077 crore in the finan-cial year 2013-14.

Shri Nambiar further apprisedthat in case the remaining non-oper-ational 203 SEZs become opera-tional, the exports from SEZs willcross Rs10, 00, 000 crores. He addedthat we should take sincere steps tomake the remaining 203 SEZs opera-tional.

Chairman EPCES also submittedthe following issues for considera-tion:-

� In order to offer long term andstable economic policy, to at-tract investment, SEZ Act andRules should not be altered byany other Act or Rule.

� To preserve valuable foreign ex-change, DTA sale by SEZs shouldbe allowed at best import duty

rates as available to ASEAN-FTAcountries.

� Chapter 3 benefits of ForeignTrade Policy, being export mar-keting support, may be ex-tended to exporters from SEZs.

� As envisaged under Section 26of the SEZ Act, Minimum Alter-nate Tax (MAT) on SEZs shouldbe exempted. If the extemptionis not feasible, it should be atleast reduced to 7.5 per cent, en-abling them to avail the set offwithin the allowed period of 10years.

� Exemption may be providedfrom Dividend Distribution Tax(DDT) to SEZ developers.

� Grandfathering of existing pro-vision to all those SEZs whichare notified as on the date onwhich the DTC comes into ef-fect.

� Gems and jewellery tradingunits that are situated withinthe zone, should be allowed toimport materials from foreign

T

Shri P.C. Nambiar, Chairman EPCES highlights issues of

EOUs and SEZs during Pre-Budget consultations meeting with

Shri Arun Jaitley, Honourable Union Minister for Finance

Shri Arun Jaitley, Honourable Union Minister for Finance (extreme right) during Pre-Budget consultations with Trade and Industry

8 EPCES NEWS | April-June 2014

countries for distribution tothe users within the zone. Cur-rently trading of preciousmetal or articles is not al-lowed.

� As SEZs have established manu-facturing capacity, mostly theyare under- utilized for want ofexport orders. Sub-contracting,in SEZs, for and on behalf of DTAunits on payment of appropriate

duties and taxes should be per-mitted for proper utilisation ofsuch capacity.

� Exemption from service tax orsimplification of the refund pro-cedure.

� Recommendations of PandaCommittee Report on EOUScheme should be implementedimmediately to revive thescheme as the EOUs are predom-

inantly located in rural areas.

The meeting was also attendedby Chairman CII, Chairman FICCI,President FIEO, Chairman Bharti En-terprises, Chairperson Biocon,Chairman Essar Group, ChairmanSuzlon Group, Chairman Videocon,President Assocham, Chairman PHDChamber and other leaders of Tradeand Industry. �

Under the patronage of His High-ness Sheikh Mohammed Bin Rashid AlMaktoum, Vice President and PrimeMinister of UAE and Ruler of Dubai,the global launch and unveiling ofWorld Free Zones Organization tookplace on May 19, 2014 at JumeirahEmirates Towers Hotel, Dubai. ShriP.C. Nambiar, Chairman, EPCES, hasbeen elected as Director and Secre-tary of World Free Zone Organization.

It was informed during the pro-gramme that the World Free ZonesOrganization (World FZO) is a newnon-profit entity operating as an as-sociation for all free zones aroundthe world, which is set to transform

the way in which many economiesaround the world operate. WorldFZO is established in Geneva,Switzerland and headquartered atthe Dubai Airport Free Zone in UAE.World FZO will provide global lead-ership in terms of knowledge of freezones, enhance public and generalknowledge and the perception of freezones, provides a range of servicesfor its members and the community.The organisation will also help in in-creasing awareness about the advan-tages of free zones in terms ofeconomic and social developmentand foreign and direct investment.

Further, it was apprised that the

World FZO, which is open to allmember nations of the United Na-tions, comprises representatives ofestablished free zones as well aslocal, regional and international freezone associations from across theworld. The official office holders onthe board of directors, which wereannounced during the press confer-ence, include Dr. Mohammed Alza-rooni (UAE) as Chairperson, Mr LuisPellerano (Dominican Republic) asVice Chairperson, Shri P.C. Nambiar(India) as Secretary and Ms. RoseHynes (Ireland) as Treasurer.

During the launch, Chairperson Dr.Mohammed Alzarooni said: “We are

Global Launch of World Free Zone Organisation on May 19, 2014 at Dubai

L to R : Dr. Mohammed Al Zarooni, Chairperson - WFZO, Mr. Luis Pellerano, Vice Chairperson WFZO, Mr. P.C. Nambiar, Director

and Secretary WFZO and Ms. Rose Hynes, Treasurer WFZO during the launch of World Free Zone Organization


EPCES Compliments Shri Pravir Kumar on his appointment as DGFT

EPCES welcome Shri Pravir Kumar (IAS,1982 batch UP cadre) as new Director General of Foreign Trade, Ministry of Com-merce and Industry.

Shri Pravir Kumar has a backgroundof exports, having served as Develop-ment Commissioner of Kandla SEZ andDahej SEZ earlier.

The EOU and SEZ Sector in India isgrowing and day to day problems of in-terpretation and decision making needquick decisions for smooth operations.EPCES hopes that under his dynamicleadership, the decision making in DGFTwill speed up and quick decisions willbe taken on files.

Shri Pravir Kumar

Director General

of Foreign Trade

His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President

and Prime Minister of UAE and Ruler of Dubai (Centre)

L to R : Mr. P.C. Nambiar, Director and Secretary WFZO, Dr. Mohammed Al Zarooni,

Chairperson – WFZO, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President

and Prime Minister of UAE and Ruler of Dubai, Mr. Luis Pellerano, Vice Chairperson WFZO and

Ms. Rose Hynes, Treasurer WFZO

Group photograph of members of WFZO with

His Highness Sheikh Mohammed Bin Rashid

Al Maktoum, Vice President and Prime Minister

of UAE and Ruler of Dubai

excited to be launching The WorldFree Zones Organization today; thiswill promote a spirit of collaboration,dialogue and guidance. It will providehelp to nations that can benefit fromthe free zone model; whose economiesrequire foreign direct investment inorder to build strong, robust and di-verse economies for the future.”

Dr. Mohammed Alzarooni alsosaid “The creation of such an organ-isation would not be possible with-out the inspired leadership andvision of His Highness Sheikh Mo-hammed Bin Rashid Al Maktoum. Itis his vision that led us to establishthe first ever multilateral organiza-tion to grow out of Dubai.”

further enhance the development offree zones in other parts of the world.With its headquarters here, Dubaiand the UAE is positioning itself as amajor player in the world economy inthe run up to Expo 2020”, Dr. Mo-hammed Alzarooni added.

According to a recent report ofWorld Bank, the UAE is the leadingArab country when it comes to theease of doing business. The countryhas achieved this ranking throughimproving regulations and a range ofother business-critical parameters.The UAE tops the region in the cate-gories of starting a business, regis-tering property and trading acrossborders, Dr. Alzarooni added. Healso apprised that the UAE has along history of establishing freezones to attract business and for-eign investment, which has helpedposition the country as a businesshub connecting East and West. Newbusinesses have been regularly setup in one or the other free zones ofthe UAE to take advantage of lawsthat enable full ownership and repa-triation of profits.

In his closing remarks, Dr. Alza-rooni said, “I would also like to thankall of the UN agencies and multilat-eral organisations, as well as the 14founding members for their contri-bution and support in forming WorldFree Zones Organization.” �

“The UAE has been a shining ex-ample of the dynamic role free zonesplay in economic and social develop-ment, and its diversity and vibrancyas a business hub has put the coun-try on the world map. World FZO will


xport Promotion Council forEOUs and SEZs (EPCES), inassociation with Ministry of

Commerce and Industry arrangedvisit of a High Powered Delegationof Department of Commerce andmembers of EPCES to China. Thevisit was scheduled from April 14 toApril 18, 2014. The Delegation wasled by Shri Rajeev Arora, Joint Sec-retary, Ministry of Commerce andIndustry and comprised of Dr. L.B.Singhal, Additional DGFT and De-velopment Commissioner, NoidaSEZ, Shri Sanjeev Nandwani, Devel-opment Commissioner, Falta SEZ,Shri Sanjeet Singh, Director, MOC&Iand DG, EPCES, Shri R.C. Taneja,Unitech, New Delhi, Shri AmogPatankar, K. Raheja Group, Mumbaiand Shri S.K. Gupta, Shri SudeepGupta of Artha Infratech Pvt. Ltd.,New Delhi.

Embassy of India, Beijing in as-sociation with China’s Top 500 For-eign Trade Enterprises Cluborganised a roundtable meeting on‘Investing in Indian SEZs’ on April16, 2014. The meeting was at-tended by a nine-member delega-tion from Ministry of Commerceand Industry and EPCES led by ShriRajeev Arora, Joint Secretary (SEZ),Department of Commerce. ShriAshok K. Kantha, Ambassador ofIndia in China and Mr Zhao Yan, Ex-ecutive Chairman of China Top 500Foreign Trade Enterprises Clubwere also a part of the meeting.

Shri Ashok K. Kantha, Ambassa-dor of India, in his keynote remarkshighlighted that the overall FDI cli-mate in India is welcoming and thesize of Indian market and its cur-rent stage of development makes

India a natural destination for busi-ness. He further said that Chinesepresence will create employment,improve technology levels and ex-pand and its capacity that fits ex-tremely well with India’s NationalManufacturing Policy. He addedthat the larger flows of FDI fromChina into India will be one of theways of addressing the tradedeficit.

Shri Rajeev Arora, Joint Secre-tary, Ministry of Commerce and In-dustry explained in detail the SEZpolicy of India. He also in brief ex-plained the benefits that the for-eign enterprises can avail byinvesting in India. The meeting wasattended by about 30 Chinese com-panies that are amongst the 500largest foreign trade enterprises inChina. �

Visit of High Powered Delegation of Department of Commerce and members of EPCES to Beijing and

Shanghai, China from April 14 to 18, 2014

E

Shri Rajeev Arora, Joint Secretary, Ministry of Commerce and Industry (5th from left) with the members of the delegation

R to L : Shri Sanjeeet Singh, Director Deptt.of Commerce and Director General EPCES, Shri Sanjeev Nandwani, Development Commissioner Falta SEZ,

Dr. L.B. Singhal, Additional Director General of Foreign Trade and Development Commissioner (Addl. Charge) Noida SEZ, Shri Rajeev Arora, Joint Secre-

tary, Ministry of Commerce and Industry, Shri S.K. Gupta, Artha Infratech Pvt Ltd, Shri R.C. Taneja, Unitech SEZ, Ms. Chitrangana, Second Secretary

(Comm), Embassy of China and Shri Amogh Patankar, K. Raheja Group.


EPCES participates in “IndiaShow” and INTERPHEX & IN-PHARMA Fair 2014 held from 2nd to4th July, 2014 at Tokyo, Japan.

EPCES along with its membershas participated in “India Show”and INTERPHEX & INPHARMA Fair2014 held from 2nd to 4th July, 2014at Tokyo, Japan. The Show was or-ganized by Ministry of Commerce &Industry and Federation of IndianChamber of Commerce & Industry(FICCI).

The Made in India Show was in-augurated by Shri Rajeev Kher,Commerce Secretary, Ministry ofCommerce & Industry where over100 leading Indian pharma compa-nies are showcasing their productsin one of the biggest pharma prod-ucts show in the world and haveput up one of the finest India

Shri Rajeev Kher, Commerce Secretary (Centre) addressing the participants at the fair

A view of the audience

India Show” and INTERPHEX &

INPHARMA Fair 2014 at Tokyo, Japan


H.E. Mrs. Deepa Gopalan Wadhwa, (Centre), Ambassador, Embassy of India, Tokyo, Japan with EPCES Members.

Shri P.C. Nambiar, Chairman, EPCES (6th from Right) and Shri O.P. Kapoor, Dy. DG, EPCES (4th from Right)

Shri P.C. Nambiar, Chairman, EPCES (right) presenting memento to

H.E. Mrs. Deepa Gopalan Wadhwa, (Centre), Ambassador, Embassy of India,

Tokyo, Japan. On extreme left is Shri O.P. Kapoor, Dy. DG, EPCES

branded marketing initiative everin a foreign market.

Shri Rajeev Kher, Commerce Secretary, Ministry of Commerce &Industry said that India is rebrand-ing itself not only as the pharmacyof the world but also as the respon-sible health care given to the world.Indian medicines are affordable andof top quality as it meets the re-quirement of the toughest regula-tory markets in the US and EU. Indiais doing cutting edge work in biolog-ics and biotechnology as well asnanotechnology. In terms of drugdiscovery and R&D spend, India fig-ures amongst world’s top threecountries. He emphasized that thereis a win-win possibility for both Indiaand Japan in pharma cooperation.

H.E.Mrs.Deepa Gopalan Wadhwa,Ambassador, Embassy of India,Tokyo, Japan assured Indian com-panies about the fullest cooperationof Embassy of India for increasingtrade between Japan and India. Shri


Shri P.C. Nambiar, Chairman, EPCES (centre) and Shri O.P. Kapoor,

Dy. DG (extreme left) with members of the Council at EPCES Stall

Representatives of Indian companies with: Shri Rajeev Kher, Commerce

Secretary and Shri P.C. Nambiar, Chairman, EPCES

P.C. Nambiar, Chairman, EPCES in aone to one meeting with H.E.Mrs.Deepa Gopalan Wadhwa, Ambassador, Embassy of India,Tokyo, Japan briefed about the SEZScheme of India. During discus-sions, it was suggested that EPCESmay arrange visit of a delegation ofSEZ Developers and prominent unitsto Japan in November 2014/January2015 comprising of members repre-senting electronic hardware, foodprocessing, automotive componentsand energy saving apparatus sec-tors. Her Excellency also met Indianparticipants and held detailed dis-cussions with them and assuredthem about the cooperation of Em-bassy of India for increasing tradebetween the two countries.

Shri P.C. Nambiar, Chairman,EPCES explained to the Japanesebusinessmen about the compre-hensive package available for Foreign Direct Investment for in-

vestment in setting up of SEZ orunits in SEZs. He explained that at-tracting FDI is one of the stated ob-jectives of SEZs and for this SEZScheme offers one of the best com-petitive package. He also informedthe Japanese businessmen that re-sponse to this scheme from inter-national investors has been veryencouraging so far. He explainedthe Japanese delegates aboutsalient features of SEZ Scheme andsaid there is a vast scope for For-eign Direct Investments in India inthe SEZ Scheme. He also briefedvarious provisions of the SEZ Actand Rules, which have been in op-eration in India.

Shri Nambiar further informedthat there are 7 Government Spe-cial Economic Zones in the country.Out of 388 notified SEZs in thecountry, 185 SEZs are in operationand our focus is to make the re-maining 203 SEZs in operation for

increasing investment, employ-ment generation and exports fromthe country. Japanese business-men appreciated the efforts ofIndia and assured their fullest co-operation for making investmentsin SEZs in India.

EPCES along with its followingmembers has participated in thepharma fair: � M/s Wockhardt Ltd., Mumbai

SEZ Unit/SEZ Developer� M/s Biocon Ltd., Bangalore,

SEZ Developer� M/s Chemsworth, Sachin,

SEZ Unit� M/s Ranbaxy Laboratories Ltd.,

SEZ Unit� M/s Sri City Pvt.Ltd., Chennai

SEZ Developer� M/s Unique Pharmaceutical

Laboratories, Mumbai, EOU� M/s Maharashtra Airport De-

velopment Co., Mumbai. SEZDeveloper. �

Renewal of Membership Subscription for 2014-15The intimation/notice to members of the Council requesting to renew their member-

ship with EPCES for the year 2014-15 have been sent separately.

The members are requested to kindly renew their membership with the Council andpay their membership subscription for the year 2014-15 as per the intimation/notice sentto them to enable the Council to take up the issues of the members with the concernedGovernment authorities in an effective manner.


xport Promotion Council forEOUs and SEZs (EPCES) at-tended a meeting with Shri

Pravir Kumar, IAS, Director General ofForeign Trade, Ministry of Commerceand Industry held on May 9, 2014.The meeting was called to take thefeedback of exporters for formulationof Foreign Trade Policy 2014-19.

The meeting was attended byShri Sanjeet Singh, Director, Min-istry of Commerce and Industryand DG, EPCES, Shri Rahul Gupta,Regional Chairman, EPCES, ShriNaresh Sharma, Convenor, Panel onFinance and Budget and Shri Vib-has Joshi and Shri Anil Nauriyal ofMoser Baer India Ltd.

During the meeting Shri Pravir

Kumar, Director General of ForeignTrade appreciated the efforts madeby EOUs and SEZs to boost exports.He also mentioned that the sectoris doing exceedingly well in termsof exports, manufacturing, invest-ments and generating employmentfor the country. He further in-formed that suggestions given byvarious Export Promotion Councilswill be considered while formulat-ing the FTP 2014-19. DGFT assuredfull cooperation to the councils inresolving the issues being faced bythe EOUs and SEZs.

Shri Sanjeet Singh, Director,Ministry of Commerce and Industryand Director General, EPCES men-tioned that benefits of specialschemes like Vishesh Krishi and

Gram Upaj Yojana Scheme, FocusMarket Scheme and Focus ProductScheme may be extended to all SEZunits. He further highlighted thefollowing issues for consideration:

As regards Imposition of threetime Cess on EOUs, it was informedthat EOUs are required to pay ex-cise duty cess three times on clear-ance of its finished goods from EOUto DTA. As per Section 3 of the Cen-tral Excise Act 1944, the manufac-tured goods cleared from EOU toDTA are subject to payment of cus-toms duty, it is required to be paidat the time when similar goods areimported. Customs duty at the timeof import levied two time cess only.However, the EOUs are forced topay three time cess. Necessary

EPCES apprises Shri Pravir Kumar, DGFT on the concerns

of EOUs and SEZs at meeting held on May 9, 2014 on the

formulation of Foreign Trade Policy 2014-19

E

Shri Pravir Kumar, DGFT (extreme left) during the meeting

R TO L : Shri Sanjeet Singh, Director, Deptt. Of Commerce and DG EPCES, Shri Naresh Sharma, Serum Instt. Of India Ltd,

Shri Rahul Gupta, Regional Chairman EPCES, Shri Vibhas Joshi, Moser Baer India Ltd, Shri Anil Nauriyal, Moser Baer India Ltd


amendment is required to be madein the policy to relieve the manu-facturing units in EOU, EHTP, STPand BTP units.

As regards deletion of sectorspecific clause from FTP underEOU Section as per Appendices 14-I-C and Rule 18 Section IV(c) ofChapter III of SEZ Policy, it was re-quested that provision for renewalof existing licence holders beclearly added in Para 7 pertaining toTextiles in Appendix 14-I-C of HBPon similar lines as done for SEZ’s soas to avoid any ambiguity in policyinterpretation by the concerned au-thorities

As regards Issuance of EPCGLicense for procurement ofDiesel Generator Sets, it was in-formed that EPCG license for pro-curement of diesel generator setshave been stopped. It is re-quested that there should be adifferentiation between powerplants and power generating setsdepartment and amendmentshould be made in the notifica-tion no: 07 (RE-2013)/2009-14dated April 18, 2013. It was alsorequested that the diesel and gasgenerating sets should be re-moved from the negative list ofitems. This notification has reallycrushed the generator set manu-facturing industry as a wholesince last more than one year.

As regards Sale of Marble inDTA at concessional duty underPara 6.8(a) and Para 6.8(h), it wasrequested that EOUs engaged inexport of natural stones wouldsubstantially grow their exporteven on low margins if they are al-lowed to import marble blocks forprocessing and sales in the DTAwhere margins are higher. Thiswould incentivise these units togrow more and more exports evenif the margins are negligible asthese units will have to achievethe positive NFE and therefore willhave to push exports.

As regards CST reimbursementfor products procured by one EOUfrom another EOU, it was informedthat claims for CST refund are beingrejected on the grounds that reim-bursement of CST is eligible only forthe supplies made by DTA to EOU.There is no specific mention aboutreimbursement of CST for the sup-plies made by an EOU to EOU, theclaims could not be processed andsanctioned. It was requested thatthe reimbursement of CST for supplyof goods from one EOU to anotherEOU for inter-state transactions maybe allowed. It was also requested tomake necessary amendments in theFTP 6.9 (E) and FTP 6.8 (H).

Shri Rahul Gupta, RegionalChairman, EPCES requested thatnecessary notifications in respect

of some of the accepted recom-mendations of committee set up toreview, revamp and remodel EOUScheme may be issued. Shri RahulGupta thanked Shri Pravir Kumar,DGFT for patiently hearing to theissues of EOUs and SEZs.

Prior to this meeting a delega-tion of EPCES members comprisingShri Sanjeet Singh, Director Min-istry of Commerce and Industryand Director General EPCES alongwith Shri Rahul Gupta, RegionalChairman EPCES, Shri NareshSharma, Serum Institute of IndiaLtd, Shri Vibhas Joshi, Moser BaerIndia Ltd, Shri Anil Nauriyal, MoserBaer India Ltd, Shri Shri DeepakGoel – Geetanjali Woollens Pvt Ltd,Shri S.S. Acharya – Sudhir GensetsLtd and Shri C. H. Parashar – Auto-lite India Ltd., had a meeting withthe officials of directorate generalof foreign trade, on May 2, 2014, todiscuss the issues relating to for-eign trade policy concerning EOUsand SEZs.

From DGFT, Shri D.K. Singh, Ad-ditional Director General, ShriJaikant Singh, Additional DirectorGeneral, Shri Darshan Singh, Addi-tional Director General of ForeignTrade, Shri Jaykaran Singh, JointDGFT, Shri Hardeep Singh, JointDGFT, Shri K.C. Raju, Deputy DGFTand other senior government offi-cials have attended this meeting. �


Mayar Infrastructure Development Pvt. Ltd. is ready with its State

of the Art Research and development facility at Sohna, Gurgaon

EPCES in association with JaganInstitute of Management Studies(JIMS) organised a training and ori-entation programme on “Contempo-rary issues in International PaymentSystems, Letters of Credit and Guar-antees” on June 20, 2014 at NewDelhi.

The training and orientation pro-gramme was organised for the bene-fit of exporters, importers, tradinghouses and trading companies. Theprogramme also aimed at providinghelp to the exporters in their day-to-day operations. The event was at-tended by more than 35 participantsserving as middle level officials atvarious firms of different sectors.

Shri O.P. Kapoor, Deputy DirectorGeneral, Export Promotion Councilfor EOUs and SEZs (EPCES) ex-plained the members about the func-tioning of Export Promotion Councils(EPCs). He mentioned that there arevarious EPCs in India but EPCES isthe only multi-product export pro-motion council that caters to exportpromotional needs of EOUs and SEZsin the country. EPCES representsmajor industrial sectors, like textile,garments, yarn, gem and jewellery,food and agro products, electronicand software, pharmaceuticals, engi-neering, minerals, granites, stones,plastic and other products. He fur-ther briefed the participants aboutthe advantages of becoming mem-

bers of the council. He also ex-plained the Market Development As-sistance Scheme for participation intrade fairs and exhibitions abroad.

Shri Kapoor also explained thesalient features of SEZs and in-formed that during the year 2013-14,the exports from SEZ sectoramounted for Rs.4,94,077 crore. Hefurther informed that the seven Gov-ernment SEZs are functioning allover India and over to which 566SEZs has already been approved bythe Government in the country. Outof these, 388 SEZs have been notifiedand 185 SEZs are in operation. Theparticipants were also briefed about

The Chairman of Mayar Group ofCompanies Mr. A.K. Sud is pleased toinform the members that a com-pletely Integrated Life Sciences,Biotech and Research and Develop-ment focused SEZ with in-campus fa-cility for laboratories and centralhub of instrumentation BioPORT tosupport facilities such as knowledgecentre, bio-business set up, labora-tory incubator and training complexfor the industrial units is ready foroccupation.

The Project is spread across 160acres of land which is north India’sfirst SEZ focused on research anddevelopment and technology ledmanufacturing.

� It is strategically located nearDelhi and in the close vicinity ofbusiness hub of Gurgaon.

� Four lane road connectivityfrom Gurgaon, South Delhi

and Faridabad.

� The project is integrated com-plex having 3 phases:

� Phase I: A world class labo-ratory space with all elite serv-ices with built up area of over2,50,000 square feet is ready foroccupation. Termed as KeystoneKnowledge Park with multidisci-plinary flexible lab space andplots for manufacturing and re-search and development. � Phase II: Spread over 100acres is proposed for industrialpark and low density ecofriendly colony.� Phase III: a Wellness Resortand Golf Course spread over anarea of 50 acres.

While identifying the gap in thefrontier area of Biotechnology, theproject offers a promise to boost in-dustry in whole life sciences sector

range from agriculture to health andenvironment. The venture is basedon a holistic view of development ofhuman life and nature wherein it willbe a location in future to nurture andsustain the talent for excellence inBiotechnology and will have its di-rect impact on raising quality of lifethrough improvement in economics,environment and health outputs.The venture is not limited to the nar-row confines of industry and com-mercial considerations, but goes farbeyond to raise the standard ofhuman life and protection of theflora and fauna.

Considering that we have daredto invest in a high risk technologyoriented venture which carries thepromise of overall development, welook forward to the support andguidance from the Government sothat the simultaneous developmentof an integrated SEZ in biotechnol-ogy becomes possible. �

Taking up contemporary issues in international payment systems

Contd. on page 17


meeting of Export Promo-tion Councils with Shri Ra-jeev Kher, Commerce

Secretary was held on 28.5.2014 atUdyog Bhavan, New Delhi. Themeeting was attended by Shri San-jeet Singh, Director, MOC and I andDG, EPCES and Shri Rahul Gupta, Re-gional Chairman, EPCES. During themeeting, EPCES submission wasmade and major and concrete issuesof EOUs and SEZs were highlighted.

The following 4 issues, relating toEOUs and SEZs, were submitted byEPCES:-

Applicability of MAT on the SEZDevelopers and SEZ Units: Sub-clause (6) of Sec 115 JB of the In-come Tax Act be reinserted:

“The provisions of this sectionshall not apply to the income ac-crued or arising on or after the 1stday of April, 2005 from any businesscarried on, or services rendered, byan entrepreneur or a Developer, in aUnit or Special Economic Zone, asthe case may be”

For this purpose, amendmentshould be made in section 103 of theDTC so as to exclude SEZ developersand Units from payment of MAT.

Exemption from levy of Divi-dend Distribution Tax

Subclause (6) of Section 115(O)

of the Income Tax Act is reinserted:

“Notwithstanding anything con-tained in this section, no tax on dis-tributed profits shall be chargeablein respect of the total income of anundertaking or enterprise engagedin developing or developing and op-erating or developing, operating andmaintaining a Special EconomicZone for any assessment year on anyamount declared, distributed orpaid by such Developer or Enter-prise, by way of dividends (whetherinterim or otherwise) on or after the1st day of April, 2005 out of its cur-rent income either in the hands ofthe Developer or Enterprise or theperson receiving such dividend notfalling under clause (23G) of section10.]”

Status quo should be maintained- Developers should continue to beexempted from DDT as providedunder section 27 of the SEZ Act, 2005read with Schedule II. For this pur-pose, amendment should be made insection 112 of the Code so as to ex-clude SEZ developers from paymentof DDT.

Exemption from levy of Service tax

Exemption from Service Tax toSEZ units and developer must be ex-plicitly provided under Service taxlaw. Notification 12/2013 dated July

1, 2013 issued by service tax depart-ment should be amended to provideab-initio exemption based on ap-proval by SEZ Authority alone.

Investment based exemptionprovided in the Direct Tax Code toSEZ Developer and Units For De-velopers notified up to date of DTCbecoming effective

Enabling provisions should be in-serted in the code to continue theperiod of availing profit based in-centives (to avoid hybrid system ofproviding exemption) for both de-velopers and co-developers.

For Developers notified after DTCbecoming effective – Exemptionshould continue as is currently avail-able under section 80IAB of the ITAct for both developers and co-de-velopers.

FOR UNITSFor SEZ Units commencing op-

erations up to date of DTC becom-ing effective:- Enabling provisionsshould be inserted in the code tocontinue the export linked incen-tives as are currently availableunder section 10AA.

For SEZ Units commencing op-erations after date of DTC becom-ing effective:- Similar to section10AA of the IT Act may be intro-duced in the code. �

Meeting of Export Promotion Councils with Commerce Secretary on May 28, 2014

at Udyog Bhavan, New Delhi

A

Taking up contemporary issues in international payment...

the performance of SEZs.

During the programme, Dr. AshokBhagat, Dean, International Business,Jagan Institute of Management Studies(JIMS) and Professor S.C. Kapoor, ex-

plained about the various paymentsystems and related risks. They alsotalked about bank payment obliga-tions, availability, scrutinizing andstructuring letters of credit as per busi-ness need, and LOC operations, types,

responsibilities of different parties.

The participants appreciated theefforts of JIMS and EPCES for organ-ising a very useful and educationalprogramme. �

Contd. from page 16


Interaction of EOUs and SEZs on Pre-Budget Proposals held on May 22, 2014 in the Conference Room of EPCES

An interaction of prominent EOUs and SEZs underthe chairmanship of Shri Sanjeet Singh, Director, MOCand I and Director General, EPCES was held on Thurs-day, May 22, 2014 in the Conference Room of EPCES.The meeting was held to the take feedback from mem-bers for preparation of a Document EPCES Vision2020 for submission at meeting of Export PromotionCouncils with Commerce Secretary held on May 28,2014 at Udyog Bhavan, New Delhi. The meeting wasattended by Shri Rahul Gupta, Regional Chairman,EPCES, and representatives of Moser Baer India Ltd.,Unitech, Artha SEZ, KPMG, Vaish Assocaites andErnest Young.

After detailed discussion, the members decided thatfollowing points and suggestions may be submitted toMOC and I for consideration:

� Stability of SEZ Policy: The members felt that thereis a need for stable SEZ Policy. It was emphasizedthat once an Act or SEZ Policy id passed by the Par-liament, there should be no further changes madein it. As once the changes are made in, the credibil-ity of the scheme is lost and this sends wrong sig-nals to foreign businessmen and investors andcreates uncertainties in the minds of SEZ develop-ers and units. Only mother ministry should havethe power to initiate changes in it. No other min-istry should be allowed to make any kind ofchanges or amendments in it. In case changes areto be made, the same may be done after due con-sultation with trade and industry ministry. The re-sponsibility for making the changes may be withmother ministry only.

� Need for Long Term SEZ Policy: The members feltthat there is a need for long term SEZ Policy and thesame should be guaranteed for minimum 20 years.

� Restoration of original provisions: There is alsoneed for going back to the original Act. The originalprovisions have to be restored.

� To provide all duty exemptions: The members re-quested that all exemptions which have been prom-ised in Section 26 of the SEZ Act should be followed.Anything which is not being followed is ultra vires.Anything which violates the basic concept of SEZsshould be struck down.

� Funding for SEZs: This is an important issue of SEZDevelopers. The funding for SEZ Developers is aproblem because of non-transferability of land. A

clarification is to be sought on collateral facility.Lending is to be treated as priority sector for SEZUnits and Developers.

� Strengthening of Single Window Facility: The mem-bers requested that senior officers of state Govern-ments may be appointed as developmentcommissioners for smooth functioning of SEZs.

� Merger of Schemes under Chapter 3: The membersrequested that SEZs should be treated at par withany other exporters for availing benefits underChapter 3 of Foreign Trade Policy. The membersalso requested for merger of all export promotionschemes as per Chapter 3 of Foreign Trade Policyinto one or two schemes.

� Customs facilitation should be available for 24hours a day including customs clearance.

� Deemed Export benefits should be provided toservice providers.

� There should be tax incentives, which are easy toaccess and comprehend. In this regard, MAT, DDT,VAT, Service Tax and Stamp Duty are important is-sues. SEZs are finding it difficult to do anything be-cause of the present duty structure. The fundsshould be directly transferred.

� Effective EDI across the board was not only linkingSEZs with Customs but also to be linked with RBI,Port and DGFT for reducing transaction costs.

� Duty foregone should not be demanded from EOUs.

� Reduction of Transaction Cost.

� Introduction of Co-Developers.

� Implementation of SEZ Acts by States: A number ofstates have not yet implemented SEZ Acts in theirstates. All state SEZ Acts need to be uniformed.

� BPO: The members emphasized to capture the op-portunities which are likely to come in BPO sector.

� Harmonisation of other policies: NIMZ and otherschemes should be harmonised and at par with SEZScheme.

� SEZs should be classified as infrastructure project. �


EPCES arranged visit of MBA Students in Noida Special Economic Zone on April 17, 2014

EPCES, in association with theoffice of Development Commis-sioner, Noida Special EconomicZone arranged a visit of 57 Studentsof Master of International Business(MIB), Delhi School of Economic,University of Delhi on April 17, 2014to Noida Special Economic Zoneand units in Noida SEZ.

The purpose of the visit was tomake the students aware about theSEZ scheme, service, benefits and fa-cilities available in the zone and theincentives and benefits providedunder the SEZ scheme. A small pres-entation on Noida SEZ and SEZscheme was also made for students.

Shri O.P. Kapoor, Deputy Direc-tor General EPCES explained thestudents about the incentives andbenefits available under SEZScheme and role of Noida SEZ in fa-

Students at Noida Special Economic Zone

EPCES Participation in trade fairs/exhibitions abroad during 2014-15

Focus General Areas (MDA grant upto Rs.1,50,000 towards stall charges will be admissible):* Multi-products trade show at Miami, Florida USA from 8th to 10th September, 2014 Or* Buyer-Seller Meet at Japan, January, 2015 Or

Focus Latin American Countries (MDA upto Rs.2,50,000 towards economy class airfare and stall chargeswill be admissible)* Multi-products trade show FERIA International at San Salvador, El Salvador 11-16 November, 2014 Or* Multi-products trade fair “Expocomer” to be held in March, 2015 at Panama

Focus Africa (MDA upto Rs.2,00,000 towards economy class airfare and stall charges will be admissible)* Multi-products trade show at Nairobi, Kenya, 15-17 October, 2014 Or Global Expo Botswana November, 2014

Focus CIS (MDA grant upto Rs.2,00,000 towards economy class airfare and stall charges will be admissible)*Multi-products trade show Armenia Expo, 5-7 September, 2014, Yeravan, Armenia

ECPES has launched its own website www.epces.inMembers are requrested to update their profile at the EPCES website. For futher query please contact EPCES office at 011-23329766-69

cilitating trade from this sector.Shri R.K. Kundhi, Deputy Director

EPCES was also present at theevent. �


Mr. Chen Xin - DirectorZhejiang Yongning PharmaceuticalCo Ltd4Me I hus j ing Rd. Huangyan Zhejiang China PC 318020T: 0576-84082015M: 13957639868E: [email protected]

Mr. Katsuya MiyagawaManagerCorporate Planning Dept.Mitsubishi Plastics Inc1-1-1, Marunouchi, Chiyoda-kuTokya 1008252 JapanT: +81-50-31392832E: [email protected]

Mr. Hiroshi SaitouManagerGlobal Logistics Solution DivisionNippon Express Co. Ltd1-9-3, Higashi-ShimbashiMinato-ku, Tokyo 105 8322 JapanT: 03-62511293E: [email protected]

Mr. Nagisa ShinDirector – Sales & Mktg Div.Kyodo International CorporationKY Bldg, 16-17, Toranomon, 3-CHOME, MNinato-Ku, Tokyo 105 001, JapanT: 54727022F: 54726031E: [email protected]

Mr. Toshio MorikiChief Executive OfficerInter Resource Corporation5-11-26, Honmachi, Toyonaka CityOsaka, Japan 560 021T: +81-6-68623026M: +81-80-38066828E: [email protected]

Mr. Fuyuki AsaiMarketing Planning DivisionPanasonic Industrial Devices SUNXCo. Ltd243-1, Ushiyama-cho, KasugaiAichi 4860901, JapanT: +81-568337351F: 568338174E: [email protected]

Mr. Sayaka MatsumuraN-Process Sales Section – Sales Dept.Horiba Advanced Techno. Co Ltd31, Miyanonishi, KisshoinMinami-ku, Kyoto 601 8306, JapanT: +81-753217184F: +81-753217291E: [email protected]

Mr. Manabu NakamuraManager – Sales SectionTaikisha LtdSumitomo Fudosan Shinuku Grand Tower8-17-1, Nishi-Shinjuku, Shinjuku-kuTokyo 160 6129, JapanT: 03-53385128E: [email protected]

Mr. Kimi WatanabePlanner – Management DepttNikken Sekkei Construction Management Inc4-5-33, Kitahama, Chou-ku, Osaka541 0041 JapanT: +816-62032522M: +8180 30603896E: [email protected]

Mr. Yosuke OhataOverseas Trade Dept-I,Overseas Division, NP Trading Co. Ltd4-6, Kandasurugadai, Chiyoda-kuTokyo 101 8201 JapanT: +81-3-6665 7293E: [email protected]

Mr. Sobi Thomas AbrahamManaging DirectorAcube International Co Ltd3-11-20, Ishigami, Niiza ShiSaitama ken, Japan 352 0033T: +81-424768141M: +81-90 4629 4222E: [email protected]

Mr. Naoko KoudaGroup Leader – Mktg – Intl DeptTakenaka Corporation1-1-1, Shinsuna, Koto-kuTokyo 136 0075, JapanT: +81-3-68105674E: [email protected]

Mr. Parit ChauhanGAIT Business PromotionJapan Third Party Co Ltd14F, Gotenyama-Trust Tower4-7-35, Kitashinagawa, Shinagawa-kuTokyo 140 0001, JapanT: +81-3-6408 2488E: [email protected]

Mr. Yukari IshiiResearch FellowFlora Co Ltd3-39, Hasedashi-choYokkaichi Mie 5100855, JapanT: +81-59-3451261E: [email protected]

Mr. Sawan GildaAccounting SectionMitsubishi Electric Corporation2-7-3, Marunouchi, Chiyoda-kuTokyo 100 8310 JapanT: +81-3-3218 6487E: [email protected]

—EPCES members may contact theabove mentioned Japanese compa-

nies of their interest

During the Made in India Show in Japan, following Japanese companies visited EPCES Stall


TRADE ENQUIRIESDENMARKUnigroup ApS 2, Kaervej, DK-2970 HoersholmT: (+45) 70 22 28 18F: (+45) 70 22 28 19E: [email protected]: Psyllium Husk

Connect ApS1, Marsvej, DK-7430 IkastT: (+45) 97 15 20 00F: (+45) 97 15 21 30E: [email protected]: High-Fashion Leather Handbags and Leather Belts

Bevole ApS130, AmagerbrogadeDk-2300 Copenhagen ST: (+45) 32 84 05 09E: [email protected]: Footwear, LeatherFootwear, Canvas/Textile

Pando Foods15, Margrethevej

T: (+45) 65 36 26 24F: (+45) 65 30 26 44E: [email protected]: Frozen Butter made fromSweat Cream

International ApSDK-5880 NyborgT: (+45) 48 18 30 20F: (+45) 48 18 30 19E: [email protected]: Unsalted. Packed in 25 KgCartons. Fat Min.: 80-82 per centMoisture Max: 16-18 per cent

Oriental Food ApS7, DamsholtevejGunderoed, DK-2970 HoersholmT: (+45) 48 18 30 20F: (+45) 48 18 30 19E: [email protected] : Himalayan Crystal Salt

Agro BusinessDevelopment A/S14, Hoervej, DK-3300 Frederiksvaerk

T: (+45) 47 72 47 64E: [email protected]: Electric Tray-Driers forfresh food etc

Danish Gold Import75, LumbyvejDK-5000 Odense CT: (+45) 66 18 41 20E: [email protected], [email protected]: Ladies' Gold Rings GoldChains/Colliers/Necklaces

ProxyplastT: (+45) 22 77 57 58E: [email protected]: Plast Implants/Compo-nents for dental fillings

Maxidan ApS8 A, KlampenborgvejDK-2930 KlampenborgT: (+45) 39 63 28 88E: [email protected]: LDPE Plastic Bags on rollsfor household use �

A qUARteRly NewSletteR By - EPCES · A qUARteRly NewSletteR By export Promoion Council for eoUs &...

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