Noida Special Economic Zone

For setting up a manufacturing, trading or service units in SEZ, 03 copies of project proposal in the format prescribed at ‘Form F’ of the SEZ Rules, 2006 to be submitted to the Development Commissioner (DC) of the SEZ

Approval Mechanism

All approvals to be given by the Development Commissioner. Clearance from the Board of Approvals wherever required will be obtained by the Development Commissioner, before the Letter of Permission/Letter of Intent is issued.

Policy on Special Economic Zone (SEZ) Units

Policy framework for SEZ units - See Policy Page.

• SEZ units have to achieve positive net foreign exchange earning and for this purpose, a Bond-cum-Legal Agreement is required to be executed by the unit with the Development Commissioner & Dy. Commissioner of Customs jointly.
• The units have to provide annual reports to the DC, SEZ and Zone Customs in prescribed format given in Form-1 of SEZ Rules.

Salient Features and facilities to SEZ Units

• A designated duty free enclave and to be treated as foreign territory for trade operations and duties and tariffs.
• No licence required for import.
• Exemption from Customs duty on import on capital goods, raw materials, consumables, spares etc.
• Exemption from Central Excise duty on procurement of capital goods, raw materials, consumable spares etc. from the domestic market.
• Supplies from DTA to SEZ units treated as Deemed Exports. Domestic supplier may claim DEPB in lieu of drawback, provided payments for the supply are made from Foreign Exchange account of the unit..
• Exemption of Central Sales Tax on domestic purchases against Form-I.
• 100% Income tax exemption for 05 years and 50% for next 05 years thereafter, and 05 years of the ploughed back export profit for next five years for units setup till 01.04.2020
• SEZ units may be for manufacturing, trading or service activity.
• SEZ units to be positive net foreign exchange earner to be cumulatively for a period of five years.
• Performance of the units to be monitored by an Approval Committee headed by the Development Commissioner and consisting of Customs.
• 100%FDI in manufacturing sector allowed through automatic route barring a few sectors.
• Facility to retain 100% foreign exchange receipts in EEFC Account.
• Facility to realize and repatriate export proceeds within 12 months.
• Re-export imported goods found defective, goods imported from foreign suppliers on loan basis etc. without G.R. Waiver with the permission of the Development Commissioner.
• Overseas investment by SEZ units from EEFC account through automatic route.
• Release of foreign exchange to DTA units to buy goods from units in SEZs.
• Facility to setup offshore banking units.
• No cap on foreign investments for SSI reserved items.
• Exemption from industrial licensing requirement for items reserved for SSI sector.
• Profits allowed to be repatriated freely without any dividend balancing requirement.
• Domestic Sales on payment of full duty subject to import policy in force.
• No fixed wastage norms.
• Full freedom for subcontracting including subcontracting abroad.
• Subcontracting facility available to jewellery units.
• Duty free goods to be utilized in 05 years.
• Job work on behalf of domestic exporters for direct exports allowed.
• No routine examination by Customs of export and import cargo.
• No separate documentation required for Customs and Foreign Trade Policy.
• In-house Customs clearance.
• Support services like banking, post office, clearing agents etc. provided in Zone complex.
• Developed plots and ready-to-use built-up space.
• Exemption from Customs / Excise Duty for import / domestic procurement of goods for setting up units in the zone.

For setting up a unit in special Economic Zone, the applicant has to apply in form-“F” given in SEZ Rules, 2006 along with the following documents:(Form-F needs to be filled online at )

The Approval Committee will consider the proposal and approve. After approval, the unit is issued Letter of approval (LOA).

On receipt of the LOA, the unit has to accept the terms and conditions of the LOA in terms of condition No. (Xii) of LOA and also has to apply for allotment of plot/SDF, for implementation of the project. On completing the formalities of allotment of plot/SDF, the unit has to execute Bond cum legal undertaking in form –H of SEZ Rules on a non judicial stamp paper of Rs. 100/- bought in the UP or state where the unit is located and notarized by a Notary public registered in the concerned State.

After acceptance of the Bond cum Legal undertaking, the unit has to apply for issuance of import-Export code number in the format as given in Ayaat Niryat form along with following documents:

• D.D. for Rs. 250/- as application fee.
• Bankers certificate regarding maintenance of current account.
• Two passport size photographs.
• Copy of PAN of the company.

For issuance of RCMC, the unit has to submit application in App. 19 of Handbook of procedures Vol- I along with the following documents:

• Copy of IEC issued to the company.
• Bankers certificate regarding financial soundness of the applicant.

In addition to above, the unit has to submit following applications with State government/departments:

• NOC from pollution Control Board
• Power connection from UPPCL
• Building plan form the O/o the DC
• Trade TAX registration from Commercial Tax Deptt. UP

The Development commissioner, Noida SEZ has been delegated the powers of Labour Commissioner by the government of Uttar Pradesh to resolve Labour disputes and issue licences under Factory Act/ Contract Labour( R& A)Act/ Shop & Commercial establishment Act.

SDF is allotted to valid Letter of Approval(LOA) holders by DC on the recommendation of Allotment Committee. Tenancy Period is 5 year only.

Allotment fee is Rs. 1,750/- per sq. mtr.(non-refundable). Security deposit is equivalent to one year lease rent(refundable).

Lease rent is Rs.2100/- per sq. mtr. per annum.

Maintenance Charges is Rs. 25/- per sq. mtr per annum. Water charges is Rs. 2373/- per SDF per Quarter .