The Ministry of Commerce and Industry (“Ministry”) has notified the Special Economic Zones (Amendment) Rules, 2025 (“Amendment Rules”) to further amend the Special Economic Zones Rules, 2006 (“Principal Rules”). The Amendment Rules inserts proviso related to minimum requirements of land area for establishing Special Economic Zone (“SEZ”) or Free Trade Warehousing Zone.
Key Highlights:
- Introduction of new proviso for establishing SEZ or Free Trade Warehousing Zone, where a SEZ is exclusively set up for manufacturing of semiconductors or electronic components, the contiguous land area shall be ten hectares or more. Further, the Ministry also inserts explanation to electronic components which include display module sub-assembly, camera module sub-assembly, battery sub-assembly, various types of other module sub-assemblies etc.
- The Board may relax the condition of encumbrance free area, for cases where the area is mortgaged or leased to the Central Government or State Government, or their authorized agency on mortgage or for lease, for reasons to be recorded in writing.
- Introduction to supply finished goods to the Domestic Tariff Area with payment of applicable duties or may also be transferred to the Free Trade and Warehousing Zone Unit to be maintained by the Overseas Entity in the same or different Special Economic Zone as per the instructions of the Overseas Entity.
- The units providing manufacturing services in the semiconductor sector, value of goods received as well as value of goods supplied on free of cost basis are included in Net Foreign Exchange calculations and the value will be determined as per the customs valuation rules.
- The minimum requirement of land area for Textiles and Articles of Textiles in the state of Gujarat has been decreased from 20 hectares to 4 hectares.
Source: Ministry of Commerce and Industry
