Government Rolls Out Changes to Gem and Jewellery Sourcing in SEZs under SEZ ( Amendment ) Rules, 2024

The Ministry of Commerce and Industry has recently announced a significant amendment to the Special Economic Zones Rules, 2006, through Notification No. G.S.R. 105(E) dated February 05, 2024. This amendment, known as the Special Economic Zones ( Amendment ) Rules, 2024, brings about a modification to sub-rule (6) of rule 27 of the SEZ Rules, operating under section 55 of the Special Economic Zones Act, 2005.

These rules may be called the Special Economic Zones ( Amendment ) Rules, 2024and they will become effective upon their publication in the Official Gazette.

The notification stated that “In the Special Economic Zones Rules, 2006, In sub-rule (6) of rule 27, after the word “Agencies” the words “or free of charge from foreign buyer and Export thereof to the same foreign buyer” shall be inserted”

After the amendment, the Sub rule (6) of Rue 27 reads as follows:

(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.

To Read the full text of the Order CLICK HERE

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