Form - H
BOND-CUM-LEGAL UNDERTAKING FOR SPECIAL ECONOMIC ZONE UNIT.
(See rule 22)
A bond-cum-legal undertaking made this _____________day of ___________ 20__ between M/s.
_________________________________(legal status i.e. a company or firm), a unit in a Special Economic Zone
(SEZ) having its registered office at ___________________ and factory/service unit at ___________
(hereinafter referred to as “the obligors” which expression shall, unless repugnant to the context or meaning
thereof, include its heirs, successors, executors, administrators, liquidators, legal representatives and assignees)
hereby hold and firmly bind ourselves jointly and severally unto the President of India acting through the
Development Commissioner of ……………..Special Economic Zone and the Specified Officer (hereinafter
jointly referred to as “Government”) in the sum of Rs. --------- (Rupees------------- only) for which payment to
be well and truly made, we, the obligors, bind ourselves by these presents.
Whereas the Development Commissioner has issued Letter of Approval No. ___________ dated
_________ to the obligors, containing the terms and conditions for setting up and operating the unit in the
Special Economic Zone, including the requirement of achieving positive Net Foreign Exchange Earning as
provided under the Special Economic Zone Rules, 2006 and orders made there-under, hereinafter referred to as
the rules, and the obligors have duly accepted the terms and conditions of the said Letter of Approval, vide their
letter No.__________ dated __________.
And whereas we, the obligors have been authorized the use of the premises, namely,
___________________ in the ____________ Special Economic Zone wherein dutiable goods, imported or
procured from Domestic Tariff Area or procured from Export Oriented units or
Zone or other Special Economic Zone for the purpose of carrying out the authorized operations, hereinafter
referred to as the goods availing exemption from payment of duties, taxes or cess or drawback and concessions
under sections 7 and 26 of the Special Economic Zones Act, 2005 could be admitted and deposited for a period
which is co-terminus with the validity period of Letter of Approval.
And whereas the obligors can clear duty free imported goods from ports or airports or inland container
depots or specified land custom stations or customs warehouse or international exhibitions held in
case may be, for admission into the Special Economic Zone.
And whereas the obligors may remove the goods or goods manufactured or services, without payment of
duty and dispatch the same by air or sea or rail or road or courier or post for export to foreign countries or
supply to other export oriented units or to electronic hardware technology park units or to software technology
park units or to units in the same or other Special Economic Zone, without payment of duty.
And whereas the obligors have been permitted to remove the said goods or goods partially manufactured
or processed there-from to any other place in the Domestic Tariff Area without payment of duty for the purpose
of sub-contracting or test or repair or calibration or re-engineering or re-conditioning or display and to be
returned to the unit thereafter as per the provisions of the Special Economic Zones Act, 2005 and rules and
orders made there-under.
And whereas the Specified Officer has permitted provisional assessment of goods brought into the
special economic zone or manufactured by the obligors from time to time which could not be finalized for want
of full information as regard to value or description or quality or the proof thereof or for the non-completion of
the chemical or other tests in respect thereof or otherwise at the request of the obligors.
NOW THE CONDITIONS OF THE ABOVE WRITTEN BOND-CUM-LEGAL UNDERTAKING ARE
1. We, the obligors shall abide by all the provisions of the Special Economic Zones Act, 2005 and the
rules and orders made there-under in respect of the goods for authorized operations in the Special Economic
2. We, the obligors shall pay on or before a date specified in a notice of demand, all duties chargeable on
the goods not removed on termination of validity here-in-stated-above of the Letter of Approval.
3. We, the obligors shall furnish to the Asstt. Commissioner of Customs or Dy. Commissioner of
Customs, as the case may be, at port or air-port or inland container depot or land customs station or a warehouse
evidence to his satisfaction within a period of forty-five days from the date of dispatch from any warehouse or
unit that the said goods have duly arrived in our unit in the Special Economic Zone.
4. We, the obligors shall be wholly and solely responsible for ensuring that there shall be no pilferage
during transit of the said goods when dispatched from the place of import or the factory of manufacture or from
the warehouse to the unit in the Special Economic Zone and vice versa and we, the obligors, shall pay the duty
on pilfered goods, if any.
5. We, the obligors shall maintain accounts of all goods imported or procured from the Domestic Tariff
Area or consumed and utilized, in proper form, including those remaining in stock and those sent temporarily
out side the Special Economic Zone in the Domestic Tariff Area under our obligation and shall produce such
accounts for inspection of the Specified Officer or Authorized Officer.
6. We, the obligors shall intimate the date of commencement of the production/service activities for
export within one month of such date to the Development Commissioner.
7. We, the obligors shall, after the commencement of production or service activities, submit to the
Development Commissioner and the Specified Officer, Annual Performance Return within a period of ninety
days following the close of financial year, in the form prescribed under the Special Economic Zone Rules, 2006,
certified by a Chartered Accountant. In case of wrong submission of such information or failure to submit such
information within the stipulated time, the permission granted to us for carrying out the authorized operations
may be withdrawn and/or the permission for further imports and sales in the Domestic Tariff Area may be
8. We, the obligors shall achieve positive Net Foreign Exchange Earning and shall fulfill other conditions
stipulated in the Letter of Approval and in case of failure to achieve the said positive Net Foreign Exchange
Earning, except when the fulfillment of such conditions is prevented or delayed because of any law & order,
proclamation or regulation or ordinance of the Government, we shall be liable for penal action under the
provisions of the Foreign Trade (Development and Regulation) Act, 1992.
9. We, the obligors shall pay the duties on the goods and services sold in Domestic Tariff Area in terms of
Special Economic Zones Act, 2005 and the rules and orders made there-under.
10. We, the obligors shall refund an amount equal to the benefits of exemptions, drawback, cess and
concessions availed on account of the goods and services in terms of provisions of rule 25 of Special Economic
Zones Rules 2006.
11. We, the obligors shall not dispose of goods and services admitted into the Special Economic Zone or
goods manufactured or services to the Domestic Tariff Area except as provided under Special Economic Zones
Act, 2005 and the rules and orders made there-under.
12. We, the obligors shall comply with the conditions and limitations stipulated in the rules on temporary
removal of goods to the Domestic Tariff Area, without payment of duty, for the purposes of sub-contracting or
test or repairs or reconditioning or processing or display.
13. We, the obligors shall not change the name and style under which we, the obligors are doing business
or change the location of the manufacturing premises except with the written permission of the Development
14. We, the obligors shall intimate any changes in the Board of Directors/Partners, telephone No., E-mail
address, Web-Site, Pass port No., Bank Address and Factory address, forthwith, to the Development
Commissioner and the Specified Officer.
15. The Government through the Specified Officer or any other authorized officer may recover the sums
due from the obligors as provided for in condition 2 above.
Provided that the President of India shall, at his option, be competent to make good all the loss and
damages from the amount of the bond or by endorsing his rights under the above written bond or both.
16. Any other order issued by the Central Government in this regard shall be final and binding and we, the
obligors hereby undertake to comply unconditionally with such an order.
17. We, the obligors shall be bound by the changes, if any, made in the provisions of the Special Economic
Zones Act, 2005 and the rules.
18. Any stamp duties payable on this document or any document executed there-under shall be borne by
If each and every one of the above conditions is duly complied with by us, the obligors, the above
written bond-cum-legal undertaking shall be void and of no effect, otherwise the same shall remain in full force
and effect and virtue.
It is hereby declared by us, the obligors, and the Government as follows –
1. The above written bond-cum-legal undertaking is given for the performance of an act in which
the public are interested.
In these presents the words imposing singular only shall also include the plural and vice versa where the
context so requires;
IN WITNESS WHEREOF these presents have been signed this day…………………of……………20__
hereinbefore written by the obligor(s).
Date Signature of the Obligor
Name and Residential address
Witness (1) Address (1) Occupation (1)
(2) Address (2) Occupation (2)
Accepted for and on behalf of the President of India on _____ day of ____ 20_______.
Signature and date Signature and date
Name_______ Name ____________
Development Commissioner/ Jt./Dy./Asstt. Commissioner of Customs
Joint/Deputy Development Commissioner
2006 allindiantaxes.com | All rights reserved
website designing India & CMS development: Softlogics & Developments