Temporary Removal Manual Version 1.0

SEZ Online

Of Ministry of Commerce

Temporary Removal Manual Version 1.0

SEZ Online

Of Ministry of Commerce

Temporary Removal Manual Version 1.0

Intended Audience

This document is intended for use by SEZ units for the purpose of submitting Temporary Removal Request through SEZ online system. The document describes the process of preparation & submission of Temporary Removal Request through SEZ online system. Purpose of this document is only to facilitate the Units in preparation and filing of transactions using SEZ Online system; for any interpretation of SEZ Act 2005, Customs Act 1962, Rules made therein or any other laws and provisions please refer to relevant sources.

Table of Contents

1. Introduction ... 3

2. Preparation of Temporary Removal Form ... 3

I. General Details: ... 4

II. Item out details: ... 4

III. Item Re‐entry details ... 6

IV. Confirmation Screen: ... 7

V. General Instructions ... 7

3. Workflow of Temporary Removal at the unit: ... 8

4. Payment of Transaction charge ... 10

5. Printing Temporary Removal Challan through SEZ Online System ... 11

6. Search Temporary Removal Request ... 12

SEZ Online

Of Ministry of Commerce

Temporary Removal Manual Version 1.0

1. Introduction

According to SEZ Rule 50 & 51, SEZ Unit may temporarily remove the goods from the SEZ for following purposes:‐ • Capital goods for repairs

• Goods for job work, test, repair, refining, calibration, re‐engineering, re‐conditioning and R&D • Goods for display , export promotion or exhibition

• Laptop or notebook computers or video Projection Systems for use by employees of the unit/Developer • Any other goods with the prior permission of the authorised officer

However such goods needs to be brought back to SEZ within 120 days of removal or extended time as permitted by the Specified Officer, else duty may be demanded from the unit.

This document explains the procedure of preparation & submission of requests for Temporary removal of goods from SEZ unit to a DTA unit / SEZ unit of a different zone / EOU / EHTP / STPI / BTP unit.

If an SEZ Unit has to send goods abroad, temporarily, a shipping Bill should be submitted through SEZ Online System If an SEZ Unit has to send goods to another SEZ unit of the same SEZ, temporarily, an Intra Unit Transfer request should be submitted through SEZ Online System.

The following are the steps for preparation and submission of Request for Temporary Removal to Customs office: • Preparation of Temporary Removal Form by Unit Maker and its submission to Unit Approver.

• Verification of Temporary Removal Form by Unit Approver and its submission to Authorized officer electronically, using Digital Signature Certificate.

• Obtain Print out of Challan from SEZ Online System & submit it to Authorized officer along with necessary supporting documents.

• On Approval of the Temporary Removal ‘Goods Out’ Request, the goods may be taken out of the SEZ with the permission of the Authorized Officer at the gate.

• Intimation regarding arrival of Goods into SEZ, to Authorised Officer, by unit Approver by specifying details of the goods brought in.

• Approval of the temporary Removal ‘Goods In’ Request, by the Authorised Officer

2. Preparation of Temporary Removal Form

For Preparation of Temporary Removal Form, a Maker‐Checker concept has been incorporated at the unit’s end, in SEZ Online system.

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Temporary Removal Manual Version 1.0

'Unit Maker' user can prepare a Temporary Removal Request and submit it to 'Unit Approver' user who verifies/checks the correctness of the Temporary Removal Request before its submission to Custom's Office.

The Temporary Removal Form is divided into following three sections: I. General Details

II. Item Out Details

III. Item Re‐Entry details (This section will be available to the unit while the Goods are being brought back into SEZ) The various sections/tabs of the Temporary Removal Form are explained below:

I. General Details: The basic details of the Temporary Removal Form are captured in this section.

a. Supplying SEZ Unit Details: Details of the SEZ unit are auto‐populated.

b. Receiving Unit Details: Name & address of the unit to which goods are being transferred needs to be captured here. The type of receiving unit needs to be selected from the dropdown.

c. Package Details for removal: In this section, the package details of the goods such as, Number of packages, Package Units, Gross Weight, Net Weight, Unit of Measurement, Marks & Numbers etc have to be specified. The User has to select the Purpose of Removal of goods from the drop down provided. In case the user selects the purpose of removal as ‘Others’, the description of the same has to be provided.

Fig. 1 General Details

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Temporary Removal Manual Version 1.0

Fig. 2 Item Details • Invoice Details:

In the Invoice Details section, the Invoice details such as Invoice No. & Invoice Date has to be provided. Invoices can be added by clicking on ADD button provided in the ‘Invoice Details’ section. On clicking ADD button, the Invoice related fields are displayed. The mandatory details Invoice No, Invoice Date, *) have to be entered to add an invoice. An invoice will get added only if the user enters the Invoice no & Date & clicks on SAVE button.

On addition of invoice, the details are displayed in a tabular form.

a. Addition of multiple Invoices ‐ To add multiple invoices, the ADD button provided in the ‘Invoice Details’ section may be used.

b. View /Edit the details of an Invoice ‐ The details of any invoice can be viewed/ edited by clicking on Invoice no. from the table in the ‘Invoice Details’ section.

c. Deletion of an ‘Invoice’ ‐ If user wants to delete an already added invoice, he can do so by selecting the particular invoice and clicking on DELETE button.

• Item Details:

The details of the item which are to be sent out are captured in this section. On clicking ADD button of the ‘Item Details’ section, fields for entering the item details is displayed. An item will get added successfully only as the user enters all the mandatory fields of the Item details section and clicks on SAVE button

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Temporary Removal Manual Version 1.0

a. Addition of multiple Items: To add multiple items & click on ADD button.

b. View / Edit the details of an Item: The user can view/edit the item details by clicking on Item Sr. no. from the table in the ‘Item Details’ section.

c. Deletion of an Item: If user wants to remove a particular item he can do so by selecting the particular item from the table in the ‘Item Details’ section & clicking on DELETE button.

III. Item Re‐entry details

This section/tab will be displayed to the unit when the Temporary Removal request returns to the unit after Goods are ‘Passed Out’ of the zone by the Authorised Officer.

In this section, details of the items which had been sent out are auto populated (as shown in the screen shot below). The unit will have to enter the quantity of goods that are being brought into the zone. The unit may either bring in the entire quantity of goods which had been sent out at once or may bring in the goods incrementally in partial quantities. The ‘Type of Re‐Entry’ can be selected as ‘Partial’ if the goods are being brought back into the SEZ in partial quantities else as ‘Complete’ if the unit brings in the entire quantity of goods.

Fig. 3 Item Re‐entry Details

For each item which is being brought in, the user has to specify the quantity of the item in the field called as ‘Current returned quantity’

The field ‘Returned Quantity’ & ‘Remaining Quantity’ are calculated by the system. In case, a particular item had been brought into the SEZ in partial quantities earlier, the total quantity of the item returned earlier will be populated in the field ‘Returned Quantity’ and the balance quantity which is to be brought into the SEZ will be populated in the field ‘Remaining Quantity’.

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Temporary Removal Manual Version 1.0

Consider an e.g. where 100 Pieces of handsets had been temporarily removed from the SEZ and have been returned back to the zone in two lots of 60 & 40 pieces respectively.

When the 1st lot of 60 pieces is being returned to the SEZ, ‘Current Returned Quantity’ should be entered as 60, ‘Returned Quantity’ will be populated as 0 & ‘Remaining Quantity’ will be populated as 40

When the 2nd lot of 40 pieces is being returned to the SEZ, ‘Current Returned Quantity’ should be entered as 40, ‘Returned Quantity’ will be populated as 60 & ‘Remaining Quantity’ will be populated as 0

If the unit selects ‘Type of Re‐Entry’ as ‘Complete’ and enters ‘Current Returned Quantity’ less than ‘Remaining Quantity’, ‘Reason for shortfall’ has to be specified.

IV.

Confirmation Screen

After preparation of the Temporary Removal Form, as the user clicks on SUBMIT button, a confirmation screen is displayed to the user. In the confirmation page, the contents of the Temporary Removal are displayed. The user may either confirm or cancel the submission of Request using the buttons provided in this page.

Following is the outcome on clicking on these buttons:

• CONFIRM Æ The request gets submitted & it will go to the Unit Approver. The message “Request submitted successfully” is displayed to the user.

• CANCEL Æ Confirmation is cancelled and request remains with the unit maker. The unit maker can make the necessary changes and submit it later.

V.

General Instructions

i. After entering details of each tab, SAVE button has to be clicked to save the information entered.

ii. The fields marked with a red asterix mark “*” are mandatory. The Temporary Removal cannot be submitted without entering information in the mandatory fields.

iii. A unique request id will be generated by the system as the Unit Maker user clicks on the SAVE button for the first time. Temporary Removal Request can be tracked in future by using this no.

iv. On submission of the Temporary Removal Request by Unit Approver to Authorised Officer, the Temporary removal Challan No. is generated by the system. The format of the challan no. is DC Code/SEZ Code/ Unit code/TR/Running Serial number. The challan No. generated by the system can be viewed in the GENERAL DETAILS tab of the Temporary Removal Request.

v. The unit will not be able to make any changes in the Temporary Removal Request after submitting it to customs. vi. At any given point of time, only one user can work on the request. The user in whose inbox the Temporary

Removal Request is laying can only take action.

vii. If there are multiple Unit Approvers who have been assigned the same Module, Unit Approver user has to accept the request before taking action on it. The unit Approver will be able to process a request without accepting if there is only one unit approver for that particular Module in SEZ Online System.

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Temporary Removal Manual Version 1.0

3. Workflow of Temporary Removal at the unit:

1. Preparation of the Temporary Removal Form by Unit Maker and its submission to Unit Approver

2. Submission of Temporary Removal request by Unit Approver to Authorized Officer after signing digitally through SEZ Online system.

As Unit Maker submits the request electronically, it moves to the ‘Inbox’ of Unit Approver. The Unit approver can open, view & edit the request through his Inbox. The Unit Approver can take any of the following actions on a Temporary Removal Request submitted by the unit maker

i. Unit Approver can edit (if required) the contents and Submit the Temporary Removal Request to customs. ii. Unit Approver can cancel the request by selecting cancel in request status

iii. Submit the Temporary Removal Request to DC Customs

After viewing the contents of the Temporary Removal Form, if Unit Approver finds that the details are in order, he may submit it to the Authorized Officer at DC’s Office.

Before submission, a confirmation screen appears in which the entire contents of the Temporary Removal Form are displayed to the user. The Confirmation screen contains CONFIRM and CANCEL buttons. Following is the outcome on clicking on these buttons:

• CONFIRM Æ The system prompts the user for using his Digital Signature certificate. As the user selects his DSC and clicks on OK, the request gets submitted to the Authorised Officer at DC’s Office. The message “Request submitted successfully” is displayed to the user. Once the Temporary Removal Form is submitted to customs, the unit cannot make any changes in the Temporary Removal

• CANCEL Æ Confirmation is cancelled and request remains with the unit Approver. Unit Approver can make the necessary changes and submit it later.

iv. Send back the Temporary Removal request

v. The Unit Approver can send back the request to Unit maker user who has prepared it. In this case, the request shall reach the Inbox of Unit Maker user who in turn can edit and resubmit the request to Unit Approver again. 3. Approval of Temporary Removal ‘Goods Out’ Request

i. As the unit submits the Request, the Authorised Officer shall be able to view and process it. However, the Authorised Officer shall process the same after receipt of the physical copies of the Challan (print obtained from SEZ Online System) along with the supporting documents.

ii. In case the Authorised Officer finds everything to be in order, he / she can approve the Request and update the status as ‘Passed Out’ in the SEZ Online system. Further, the Authorised officer shall affix his signature and stamp on the physical copies of the Challan.

iii. On Approval of the Temporary Removal ‘Goods Out’ Request by the Authorised Officer, it moves to the inbox of the Unit Approval for Intimation regarding arrival of Goods into SEZ to Authorised Officer, by specifying details of the goods brought in.

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Temporary Removal Manual Version 1.0

iv. However, while processing the Request, if the Authorised Officer finds a discrepancy or needs a clarification, he /she can raise a 'Query' to the unit electronically, asking for clarification.

v. The unit (Unit Approver user), after receiving the Temporary Removal Request marked as 'Raised Query', can view the Form & reply to the query. The unit shall also be able to edit the Request (if required) and re‐submit. However, if the unit user makes any changes in the request, he should take a fresh print of the Challan and submit it for approval. In that case, the print of Challan previously taken will be redundant.

vi. As the unit replies to the query electronically, the Request moves to the inbox of Authorised Officer who will be able to view and process it.

4. Intimation of arrival of Goods into SEZ by the Unit

If the Authorized officer has marked the request as “Passed Out”, it moves back to Unit Approver so that, when the goods are brought back to the zone, the unit may intimate the Authorised Officer.

At this stage, a new section “Item Re‐entry Details” will get added in the request to enable the unit to enter information about items that are about to be brought back to the zone. When goods are brought back, it can either be brought in full or partial quantity.

Now the Unit Approver will have following options in request status. In all cases, the request moves from Unit Approver to Authorised Officer for approval

• Close Request

In case entire goods are being brought back, unit has to select ‘Item Re‐Entry Type’ as ‘Complete’ & select request status as ‘Close Request’. Once unit approver selects close request & submits, this request moves to Authorized officer.

• Request Extension

If the unit is not able to bring the goods back to SEZ within 120 days of removal, request for extension of the time period may be submitted. In this case, the unit has to select the status as ‘Request Extension’ & specify the ‘Reason for Extension’ & the proposed extension date in the Temporary Removal Request. Upon submission of request for extension of the time required for return of goods, the request will move to Customs Department (Authorised Officer & Specified Officer) for reviewing and approving the request.

• Request Re‐entry

If goods are being brought into the SEZ in partial quantity, unit has to select ‘Item Re‐Entry Type’ as ‘Partial & select request status as ‘Request Re‐entry’, indicating that remaining goods will be received subsequently.

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Temporary Removal Manual Version 1.0

Note:‐If the unit selects ‘Item Re‐Entry Type’ as ‘Complete’, request status cannot be selected as ‘Request Re entry’.

5. Approval of ‘Goods In’ Request by Authorised Officer:

1. As the unit submits the ‘Goods In’ request, the Authorised Officer shall be able to view & process it. However, the Authorised Officer shall process the same after receipt of the supporting documents.

2. In case the Authorised Officer finds everything to be in order, he shall approve the Request and update the status of the same in SEZ Online system. Further, the Authorised officer shall affix his signature and stamp on the physical copies of the Challan

a. If the Unit had selected status as ‘Close Request’, & the authorised officer approves the same, the Temporary Removal Request gets closed in SEZ Online System.

b. If the Unit had selected the status as ‘Request Extension & the DC Customs officials approves it, the Temporary Removal Request moves back to Unit Approver for Intimation of arrival of Goods into SEZ in future.

c. If the Unit had selected the status as ‘Request Re‐Entry’ & the Authorised officer approves it, the Temporary Removal Request moves back to Unit Approver for Intimation of arrival of remaining quantity of goods into SEZ.

3. However, while processing the Request, if the Authorised Officer finds a discrepancy or needs a clarification, he might ‘Raise Query' to the unit electronically, asking for clarification.

4. The unit (Unit Approver user), after receiving the Temporary Removal Request marked as 'Raised Query', can view the Form & reply to the query. The unit shall also be not be able to edit any field of the ‘General’ & ‘Items Out’ section of the request.

5. As the unit replies to the query electronically, the Request moves to the inbox of Authorised Officer who will be able to view and process it.

6. In case the unit has submitted the ‘Goods In’ request by selecting ‘Type of Re‐Entry’ as ‘Complete’ & status as ‘Close Request’ & for any item there is shortfall i.e. total quantity of item sent out is more than total quantity of goods brought in, DC Customs Officials may decide to levy duty. In this case, the request will return to the Unit Approver for duty payment, entry of challan details & resubmission, for verification & approval by authorised officer

4. Payment of Transaction charge

Once Unit Approver confirms submission of the Temporary Removal after digitally signing it, system will prompt for payment of Transaction charge. The following options will be available for payment:

i. My Account: User can avail Account deposit scheme for the purpose of payment of transaction charges. Payment can be made to this account by Unit Approver user. Unit approver user can top‐up any amount to this account. The payment to this account can be made either through Cheque or Demand draft or through online payment gateway

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ii. Online Payment using Gateway: In case if the applicant user selects the Online Payment Gateway, then user will be directed to payment gateway site from where payment can be made using credit card or through internet banking option.

When Unit Approver selects a mode of payment and clicks on PAY and then on CONFIRM option, request gets submitted to the Customs Assessor at DC’s Office. The message “Request submitted successfully” is displayed to the user.

5. Printing Temporary Removal Challan through SEZ Online System

After submission of the Temporary removal request electronically, the Unit has to obtain print out of Challan from SEZ Online System and submit it to DC's office along with necessary supporting documents in physical form. Following are the instructions for obtaining print out from SEZ Online System

a. To obtain print out, the Unit users have to search for the Temporary Removal through “Search Request” facility after submission of the Temporary Request to the Authorized officer.

b. Print can be obtained either by the Unit Maker User (who has prepared the Temporary removal) or the Unit Approver User.

c. While assessment, if the Authorized officer/Custom approver raises a Query & the unit needs to make any change in the contents of the Temporary Removal Request, a fresh print of the Temporary Removal Challan should be taken from the system (after assessment) as the contents of the Temporary Removal Request have changed. The Customs Assessor will affix his stamp and signature on the final copy of the Temporary Removal Challan.

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Temporary Removal Manual Version 1.0

Fig. 4: Challan for Temporary Removal of Goods

6. Search Temporary Removal Request

The unit users can search for any Temporary Removal Request that they have prepared/submitted to Customs Office by using the search facility provided in the SEZ Online system. The users can track the status of their Temporary Removal by using this facility.

Temporary Removal can be searched on the basis of the following parameters i. Date of submission of the Temporary Removal to Customs

ii. Request ID

iii. Status of the Temporary Removal

All Temporary Removal requests submitted by the unit are visible to ‘Unit Maker’ & ‘Unit Approver’ users. However, only those Temporary Removal requests which have been prepared by the Unit maker but has not yet submitted to the Unit Approver cannot be searched through the search facility provided.

7. Various status of Temporary Removal

Sr.

No Status Description

Action to be taken by

Action options available to the Unit User

1 Created

Temporary Removal Request has been created by Unit Maker User but hasn’t been submitted to Unit Approver

Unit Maker Submit to Unit Approver

2 Request Initiated

Temporary Removal Request has been submitted by Unit Maker User to Unit Approver

Unit Approver

1. Submit to Authorised Officer 2. Send back to Unit Maker User 3. Cancel the request

3 Waiting For

Payment

Transaction charges are to be paid

Unit

Approver Make payment

4 Payment successful

The transaction charges have been paid by the unit Approver. This is a temporary status.

NA

No action has to be taken by the unit users as it is a transitional & temporary status.

4 Submitted

Temporary Removal Request has been submitted by Unit Approver to Authorised Officer but, he has not yet started processing it

Authorised Officer

No action has to be taken by the unit users, as the request is under process with DC Customs Officials

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5

Authorised Officer After Submission Raise Query

A query has been raised by Authorised Officer Unit Approver 1. Query Response 2. Forward Query 8 Entity Approver Forward Query

Unit approver can send back the request to Unit Maker to resolve query

Unit Maker Unit Maker has to make corrections & submit to Unit Approver

9

Entity Maker After Submission Query Response

Unit Maker responded / reply to the query

Unit Approver 1. Query Response 2. Forward Query 10 Entity Approver After Submission Query Response A response/reply to the query raised by Authorised Officer has been submitted by the unit

Authorised Officer

No action can be taken by the unit as the request is under process with Authorised Officer

11 Authorised Officer Passed Out

Authorised Officer has approved the ‘Goods Out’ request Unit Approver 1. Close Request 2. Request Extension 3. Request Re‐entry 12 Authorised Officer Passed In Partial

Authorised Officer has approved the ‘Goods In’ request Unit Approver 1. Close Request 2. Request Extension 3. Request Re‐entry 13 Customs Assessor After Misused Incident‐ Raise Query Unit Approver 1. Query Response 2. Forward Query 14 Entity Approver Request Extension

Unit Approver has requested for extension of time limit for bringing the goods into the SEZ

Authorised Officer

No action has to be taken by unit users, as the request is under process with DC Customs Officials

15 Customs Approver Extension Approved

DC Customs Officials have approved the request for extension of the time limit

Unit Approver

8. Close Request 9. Request Extension 10. Request Re‐entry