Prior Contracts to be Protected in FTWZ Trading, Restriction on DTA Sale in Sector Specific Zones to Come into Effect from Contracts Concluded after 12.11.2010
[SEZ Instruction No. 76 dated 22nd March 2011]
Sub: Clarification on FTWZ issues
The undersigned is directed to refer to the Instruction No. 49 dated 12.3.2010 and Instruction No. 71 dated 12.11.2010 on the subject mentioned above. Instruction No. 71 was issued to amend the point No. IV of the Instruction 49. It was clarified that the units in FTWZ in sector specific SEZ can store goods required for development of the zone or setting up of units or for manufacturing and export/DTA sale of goods and services or finished products of the units in that particular sector specific zone. The provisions contained in instruction No. 71 are to be followed in letter and spirit from the date of issue of these instructions. However, trading and warehousing activities done in respect of any product by FTWZ located in sector specific SEZ between the period from 12.3.2010 to 12.11.2010 (both dates inclusive) and also the contracts signed in this period to be discharged in future may remain valid and may be treated accordingly till 31.3.2011. Thereafter, all cases including cases where contract was signed on or before 12.11.2010 shall also be regulated by instruction No. 71 w.e.f. 1.4.2011.