| Eligibility |
6.1 |
Units undertaking to export their entire production of goods and
services (except permissible sales in DTA), may be set up under the Export
Oriented Unit (EOU) Scheme, Electronic Hardware Technology Park (EHTP) Scheme,
Software Technology Park
(STP) Scheme or Bio-Technology Park (BTP) Scheme for
manufacture of goods, including repair, re-making, reconditioning,
re-engineering and rendering of services. Trading units are not covered under
these schemes. |
| Export and Import of goods |
6.2 |
- An EOU / EHTP / STP / BTP unit may export all kinds of and services except items that are prohibited in ITC Goods (HS). Export
of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET)
shall be subject
to fulfillment of the conditions indicated in ITC(HS).
Procurement and supply of export promotion material like brochure / literature,
pamphlets, hoardings, catalogues, posters etc. up to a maximum value limit of
1.5% of FOB value of previous years exports shall also be allowed.
- An EOU / EHTP / STP / BTP unit may import and / or procure, from DTA or
bonded warehouses in DTA / international exhibition held in India, without
payment of duty, all types of goods, including capital goods, required for its
activities, provided they are not prohibited items of import in the ITC (HS).
Any permission required for import under any other law shall be applicable.
Units shall also be permitted to import goods including capital goods required
for approved activity, free of cost or on loan / lease from clients. Import of
capital goods will be on a self certification basis. Goods imported by a unit
shall be with actual user condition and shall be utilized for export production.
- State Trading regime shall not apply to EOU manufacturing
units. However, in respect of Chrome Ore/Chrome concentrate, State Trading
Regime as stipulated in export policy of these items, will be applicable to
EOUs.
- EOU / EHTP / STP / BTP units may import / procure from DTA, without payment
of duty, certain specified goods for creating a central facility. Software EOU /
DTA units may use such facility for export of software.
- An EOU engaged in agriculture, animal husbandry,
aquaculture, floriculture, horticulture, pisciculture, viticulture, poultry or
sericulture may be permitted to remove specified goods in connection with its
activities for use outside bonded area.
- Gems and jewellery EOUs may source gold / silver / platinum through
nominated agencies on loan / outright purchase basis. Units obtaining gold /
silver / platinum from nominated agencies, either on loan basis or outright
purchase basis shall export gold / silver / platinum within 90 days from date of
release.
- EOU / EHTP / STP / BTP units, other than service units, may export to
Russian Federation in Indian Rupees against repayment of State Credit / Escrow
Rupee Account of buyer subject to RBI clearance, if any.
- Procurement and export of spares / components, up to 5% of FOB value of
exports, may be allowed to same consignee/ buyer of the export article, subject
to the condition that it shall not count for NFE and direct tax benefits.
|
| Second Hand capital goods |
6.3 |
Second hand , without any age limit, may also be
Capital Goods imported duty free. |
| Leasing of
Capital Goods |
6.4 |
- An EOU / EHTP / STP / BTP unit may, on the basis of a firm
contract between parties, source capital goods from a domestic / foreign leasing
company without payment of customs / excise duty. In such a case, EOU / EHTP /
STP / BTP unit and domestic / foreign leasing company shall jointly file
documents to enable import / procurement of capital goods without payment of
duty.
- An EOU / EHTP / BTP / STP unit may sell capital goods and lease back the same
from a Non Banking Financial Company (NBFC) subject to the following conditions:
- The unit should obtain permission from the jurisdictional Deputy / Assistant
Commissioner of Customs or Central Excise, for entering into transaction of
‘Sale and Lease Back of Assets’, and submit full details of the goods to be sold
and leased back and the details of NBFC;
- The goods sold and leased back shall not be removed from the unit’s
premises;
- The unit should be NFE positive at the time when it enters into sale and
lease back transaction with NBFC;
- A joint undertaking by the unit and NBFC should be given to pay duty on goods in case of violation or contravention of any
provision of the notification under which these goods were imported or procured,
read with Customs Act, 1962 or Central Excise Act, 1944, and that the lien on
the goods shall remain with the Customs / Central Excise Department, which will
have first charge over the said goods for recovery of sum due from the unit to
Government under provision of Section 142(b) of the Customs Act, 1962 read with
the Customs (Attachment of Property of Defaulters for Recovery of Govt. Dues)
Rules, 1995.
|
| Net Foreign Exchange Earnings
(NFE) |
6.5 |
EOU / EHTP / BTP / STP unit shall be a positive net foreign
exchange earner except for sector specific provision of Appendix 14-I-C
of Handbook, where a higher value addition shall be required. NFE
Earnings shall be calculated cumulatively in blocks of five years, starting from commencement of production.
Whenever a unit is unable to export due to prohibition/restriction
imposed on export of any product mentioned in LoP, the five year block
period for calculation of NFE earnings may be suitably extended by BoA.
(This Para inserted by
DGFT Notification No.
21(RE-2008)/2004-2009, Dated : 01-07-2008) |
Letter of Permission / / Letter of Intent and
Legal Undertaking
Investment Criteria |
6.6 |
- On approval, a Letter of Permission (LoP) / Letter of
Intent Permission/ (LoI) shall be issued by Development Commissioner/ Letter of
designated officer to EOU / EHTP / STP / BTP unit. LoP/ Intent and LoI shall
have an initial validity of 3 years, by which time unit should
have commenced production. Its validity may be extended further up to 3 years by
competent authority.
However, proposals for extension beyond six years shall be
considered in exceptional circumstances, on a case-to-case basis by BoA. Once
unit commences production, LoP / LoI issued shall be valid for a period of 5
years for its activities. This period may be extended further by DC for a period
of 5 years at a time.
- LoP / LoI issued to EOU / EHTP / STP / BTP units by concerned authority
subject to compliance of provision in para 6.2 above, would be construed as an
Authorisation for all purposes.
- Unit shall execute a LUT with DC concerned. Failure to ensure positive NFE
or to abide by any of the terms and conditions of LoP / LoI / IL / LUT shall
render the unit liable to penal action under provisions of the FT (D&R) Act and
Rules and Orders made thereunder, without prejudice to action under any other
law / rules and cancellation or revocation of LoP / LoI / IL.
Investment Criteria
- Only projects having a minimum investment of Rs.1 Crore
in Plant & Machinery shall be considered for establishment as EOUs . This shall,
however, not apply to existing units and units in EHTP / STP / BTP, Handicrafts
/ Agriculture / Floriculture / Aquaculture / Animal Husbandry / Information
Technology, Services, Brass Hardware and Handmade
jewellery sectors. Board of Approval (BoA) may also allow
establishment of EOUs with a lower investment criteria.
|
| Application & Approval |
6.7 |
- Applications for setting up of units under EOU scheme, other
& Approvals than proposals for setting up of units in services sector (except
R&D, software and IT enabled services, or any other service activity as may be
delegated by BoA), shall be approved or rejected by the Units Approval Committee
within 15 days
as per criteria indicated in HBP v1.
- In other cases, approval may be granted by BoA set up for this purpose as
indicated in HBP v 1.
- Proposals for setting up EOU requiring industrial licence may be granted
approval by Development Commissioner after clearance of proposal by BoA and DIPP
within 45 days.
-
Applications for conversion into an EOU/EHTP/STP/BTP unit from
existing DTA units, having an investment of Rs. 50 crores and above
in plant and machinery or exporting Rs. 50 crores and above
annually, shall be placed before BoA for a decision.
(This para is added by
DGFT NOTIFICATION No 95/2008, dated : 13-03-2009
)
|
| DTA Sale of Finished Products /
Rejects / Waste / Scrap /Remnants and
By-products |
6.8 |
- Entire production of EOU / EHTP / STP / BTP units shall be exported subject to following: and Units, other than gems and jewellery units, may sell goods upto 50% of FOB value of exports, subject to fulfilment of positive
NFE, on payment of concessional duties. Within entitlement of DTA sale, unit may
sell in DTA, its products similar to goods which are exported or expected to be
exported from units. However, units which are manufacturing and exporting more
than one product can sell any of these products into DTA, upto 75% of FOB value
of export of the specific products, subject to the condition that total DTA sale
does not exceed the overall entitlement of 50% of FOB value
of exports for the unit, as stipulated above. No DTA sale at concessional duty
shall be permissible in respect of motor cars, alcoholic liquors, books, tea
(except instant tea), pepper
& pepper products, marble and such other items as may be notified from time to
time. Such DTA sale shall also not be permissible to units engaged in activities
of packaging / labeling / segregation / refrigeration / compacting /
micronisation / pulverization / granulation / conversion of monohydrate form of
chemical to anhydrous form or vice- versa. Sales made to a unit in SEZ shall
also be taken into account for purpose of arriving at FOB value of export by EOU
provided payment for such sales are made from Foreign Exchange Account of SEZ
unit. Sale to DTA would also be
subject to mandatory requirement of registration of pharmaceutical products
(including bulk drugs). An amount equal to Anti Dumping duty under section 9A of
the Customs Tariff Act, 1975 leviable at the time of import, shall be payable on
the goods used for the purpose of manufacture or processing of the goods cleared
into DTA from the unit.
- For services, including software units, sale in DTA in any
mode, including on line data communication, shall also be permissible up to 50%
of FOB value of exports and /or 50% of foreign exchange earned, where payment of
such services
is received in foreign exchange.
- Gems and jewellery units may sell upto 10% of FOB value of exports of the
preceding year in DTA, subject to fulfillment of positive NFE. In respect of
sale of plain jewellery, recipient shall pay concessional rate of duty as
applicable to sale from nominated agencies. In respect of studded jewellery,
duty shall be payable as applicable.
- Unless specifically prohibited in LoP, rejects within an overall limit of
50% may be sold in DTA on payment of duties as applicable to sale under
paragraph 6.8(a) on prior intimation to Customs authorities. Such sales shall be
counted against DTA sale entitlement. Sale of rejects upto 5% of FOB value of
exports shall not be subject to achievement of NFE.
- Scrap / waste / remnants arising out of production process or in connection
therewith may be sold in DTA , as per SION notified under Duty Exemption Scheme,
on payment of concessional duties as applicable, within overall ceiling of
50% of FOB value of exports. Such sales of scrap / waste / remnants shall not be
subject to achievement of positive NFE. In respect of items not covered by
norms, DC may fix ad-hoc norms for a period of six months and within this
period, norms should be fixed by Norms Committee. Ad-hoc norms will continue
till such time norms are fixed by Norms Committee. Sale of scrap / waste /
remnants by units not entitled to DTA sale, or sales beyond DTA sale
entitlement, shall be on payment of full duties. Scrap / waste / remnants may
also be exported.
- There shall be no duties / taxes on scrap / waste / remnants, in case same
are destroyed with permission of Customs authorities.
- By-products included in LoP may also be sold in DTAsubject to achievement of
positive NFE, on payment of applicable duties, within the overall entitlement of
paragraph 6.8(a). Sale of by-products by units not entitled to DTA sales, or
beyond entitlements of paragraph 6.8 (a), shall also be permissible on payment
of full duties.
- EOU / EHTP / STP / BTP units may sell finished products, except pepper and
pepper products and marble, which are freely importable under FTP in DTA, under
intimation to DC, against payment of full duties, provided they have achieved
positive NFE. An amount equal to Anti Dumping duty under section 9A of the Customs Tariff Act, 1975 leviable at the time of import, shall
be payable on the goods used for the purpose of manufacture or processing of the
goods cleared into DTA from the unit.
- In case of units manufacturing electronics hardware and software, NFE and
DTA sale entitlement shall be reckoned separately for hardware and software.
- In case of DTA sale of goods manufactured by EOU/ EHTP/ STP/BTP, where basic
duty and CVD is nil, such goods may be considered as non-excisable for payment
of duty.
- In case of new EOUs, advance DTA sale will be allowed not exceeding 50% of
its estimated exports for first year, except pharmaceutical units where this
will be based on its estimated exports for first two years.
- Units in Textile and Granite sectors shall have an option to sell goods into
DTA in terms of sub-para 6.8 (a), (d), (e), (g) and (k) above, on payment of an
amount equal to aggregate of duties of excise leviable under section 3 of the
Central Excise Act, 1944 or under any other law for the time being in force on
like goods produced or manufactured in India other than in an EOU, subject to
the condition that they have not used duty paid imported inputs in excess of 3%
of the FOB value of exports of the preceding year and they have achieved
positive NFE. Once this option is exercised, the unit will not be allowed to
import any duty free inputs for any purpose.
|
| Other Supplies in DTA |
6.9 |
Following supplies effected from EOU / EHTP / STP / BTP units
to
in DTA DTA will be counted for fulfillment of positive NFE:
- Supplies effected in DTA to holders of Advance
Authorisation /Advance Authorisation for annual requirement/ DFIA under duty
exemption / remission scheme / EPCG scheme.
- Supplies effected in DTA against foreign exchange remittance received from
overseas.
- Supplies to other EOU / EHTP / STP / BTP / SEZ units, provided that such
goods are permissible for procurement in terms of paragraph 6.2 of FTP.
- Supplies made to bonded warehouses set up under FTP and / or under section
65 of Customs Act and free trade and warehousing zones, where payment is
received in foreign exchange.
- Supplies of goods and services to such organizations which
are entitled for duty free import of such items in terms of general exemption
notification issued by MoF.
- Deleted
- Supplies of Information Technology Agreement (ITA-1) items and notified zero
duty telecom / electronic items.
- Supplies of items like tags, labels, printed bags, stickers,
belts, buttons or hangers to DTA Unit for export.
- Supply of LPG produced in an EOU refinery to Public Sector domestic oil
companies for being supplied to household domestic consumers at subsidized
prices under the Public Distribution System (PDS) Kerosene and Domestic LPG
Subsidy Scheme, 2002, as notified by the Ministry of Petroleum and Natural Gas
vide notification No. E-20029/18/2001-PP dated 28.01.2003 (hereinafter referred to as
PDS Scheme) subject to the following conditions:-
- Only supply of such quantity of LPG would be eligible for which Ministry of
Petroleum and Natural Gas declines permission for export and requires the LPG to
be cleared in DTA; and
- The Ministry of Finance by a notification has permitted duty free imports of
LPG for supply under the aforesaid PDS Scheme.
|
| Export through other |
6.10 |
An EOU / EHTP / STP / BTP unit may export goods
manufactured/ others software developed by it through another exporter or any
other EOU / EHTP / STP / SEZ unit, subject to conditions mentioned in
para 6.19 of HBP v1. |
| Entitlement for Supplies from the DTA |
6.11 |
- Supplies from DTA to EOU / EHTP / STP / BTP units will
supplies from be regarded as “deemed exports” and DTA supplier shall
the DTA be eligible for relevant entitlements under chapter 8 of FTP besides
discharge of export obligation, if any, on the supplier. Notwithstanding the
above, EOU / EHTP / STP / BTP units shall, on production of a suitable
disclaimer from DTA supplier, be eligible for obtaining entitlements specified
in chapter 8 of FTP. For claiming deemed export duty drawback, they shall get
Brand Rates fixed by Development Commissioner wherever All Industry Rates of
Drawback are not available.
- Suppliers of precious and semi-precious stones, synthetic stones and
processed pearls from DTA to EOU shall be eligible for grant of replenishment authorisations at rates and for items mentioned in HBP v1.
- In addition, EOU / EHTP / STP / BTP units shall be entitled
to following:-
- Reimbursement of Central Sales Tax (CST) on goods
manufactured in India. Simple interest @ 6% per annum will be
payable on delay in refund of CST on supplies made to EOUs in
respect of reimbursement/refunds that have become due on or
after 01.04.2007 but which have not been settled within 30 days
of its final approval for payment by the Office of Development
Commissioner, SEZ.
- Exemption from payment of Central Excise Duty on goods
procured from DTA on goods manufactured in India.
- Deleted
- Reimbursement of duty paid on fuel procured from domestic
oil companies / Depots of domestic oil Public Sector
Undertakings as per drawback rate notified by DGFT from time to
time.
Re-imbursement of additional duty of excise levied on fuel under
the Finance Acts would also be admissible. (This para is
inserted
DGFT NOTIFICATION No 88/2008, Dated 26.02.2009.)
- CENVAT Credit on service tax paid.
|
| Other Entitlements |
6.12 |
Other entitlements of EOU/EHTP/STP/BTP units are as under:
- Exemption from Income Tax as per Section 10A and 10B of Income Tax
Act.
- Exemption from industrial licensing for manufacture of items
reserved for SSI sector.
- Deleted
- Export proceeds will be
realized within 12 months.
- Units will be allowed to retain 100% of
its export earning in the EEFC account.
- Unit will not be required to furnish bank guarantee at the time
of import or going for job work in DTA, where unit has
- a turnover of Rupees 5 crores or above;
- unit is in existence for atleast 3 years; and
- the unit:
- has achieved positive NFE / export obligation wherever applicable;
- has not been issued a show cause notice or a confirmed demand, during the
preceding 3 years, on grounds other than procedural
violations, under the penal provision of Customs Act, the Central Excise Act, the Foreign Trade(Development & Regulation) Act, the Foreign
Exchange Management Act, the Finance Act,
1994 covering Service Tax or any allied Acts or the rules made thereunder, on
account of fraud / collusion / willful mis-statement / suppression of facts or
contravention of any of the provisions thereof;
- 100% FDI investment
permitted through Automatic Route similar to SEZ units.
- Units shall
pay duty on the goods produced or manufactured and cleared into DTA on
monthly basis in the manner prescribed in the Central Excise Rules.
|
| Inter Unit Transfer |
6.13 |
- Transfer of manufactured goods from one EOU / EHTP /
Transfer STP / BTP unit to another EOU / EHTP / STP / BTP unit is
allowed with prior intimation to concerned Development Commissioner and
Customs authorities, following procedure of in bond movement of goods.
Transfer of manufactured goods shall also be allowed from EOU / EHTP /
STP / BTP unit to a SEZ Developer or Unit following procedure prescribed
in SEZ Rules, 2006.
- Capital goods may be transferred or given on
loan to other EOU / EHTP / STP / BTP / SEZ units, with prior intimation
to concerned Development Commissioner and Customs authorities.
- Goods
supplied by one unit of EOU / EHTP / STP / BTP to another unit shall be
treated as imported goods for second unit for payment of duty, on DTA
sale by second unit.
|
| Sub-Contracting |
6.14 |
-
- EOU / EHTP / STP / BTP units, including gem and
jewellery units, may on the basis of annual permission from Customs authorities,
subcontract production processes to DTA through job work which may also involve
change of form or nature of goods, through job work by units in DTA.
- These units may subcontract upto 50% of overall production of previous year
in value terms in DTA with permission of Customs authorities.
-
- EOU may, with annual permission from Customs authorities, undertake job
work for export, on behalf of DTA exporter, provided that goods are exported
directly from EOU and export document shall jointly be in name of DTA / EOU. For
such exports, DTA units will be entitled for refund of duty paid on inputs by
way of Brand Rate of duty drawback.
- Duty free import of goods for execution of export
order placed on EOU by Foreign Supplier on job work basis, would be allowed subject to condition that no DTA clearance shall
be allowed.
- Subcontracting of both production and production processes may also be
undertaken without any limit through other EOU / EHTP / STP / SEZ / BTP units,
on the basis of records maintained in unit.
- EOU / EHTP / STP / BTP units may subcontract
part of production process abroad and send Intermediate products abroad as
mentioned in Lop. No permission would be required when goods are sought to be
exported from subcontractor premises abroad. When goods are sought to be brought
back,
prior intimation to concerned Development
Commissioner and Customs authorities shall be given.
- Scrap / waste / remnants generated through job work may either be cleared
from job worker’s premises on payment of applicable duty on transaction value or
destroyed in presence of Customs / Excise authorities or returned to unit.
Destruction shall not apply to gold, silver, platinum, diamond, precious and
semi precious stones.
- Sub-contracting / exchange by gems and jewellery EOUs through other EOUs or
SEZ units or units in DTA, shall be as per procedure indicated in HBP v1.
|
| Sale of Unutilized Material |
6.15 |
- In case an EOU / EHTP / STP / BTP unit is unable to
utilize
Material goods and services, imported or procured from DTA, it may be
(i) transferred to another EOU / SEZ / EHTP / STP / BTP unit; or
(ii) disposed off in DTA with approval of Customs authorities on payment of
applicable duties and submission of import authorization; or
(iii) exported. Such transfer from EOU / EHTP / STP / BTP unit to another such
unit would be treated as import for receiving unit.
- Capital goods and spares that have become obsolete/ surplus, may either be
exported, transferred to another EOU/ EHTP / STP / BTP / SEZ or disposed of in
DTA on payment of applicable duties. Benefit of depreciation, as applicable,
will be available in case of disposal in DTA only when the unit has achieved
positive NFE taking into consideration the
depreciation allowed. No duty shall be payable in case capital
goods, raw material, consumables, spares, goods manufactured, processed or
packaged, and scrap / waste / remnants / rejects are destroyed within unit after
intimation to Customs authorities, or destroyed outside unit with permission of
Customs authorities. Destruction as stated above shall not apply to gold,
silver, platinum, diamond, precious and semi precious stones.
- In case of textile sector, disposal of left over material / fabrics, upto 2%
of cif value or quantity of import, whichever is lower, on payment of duty on
transaction value, may be allowed, subject to certification of Central Excise /
Customs officers that these are left over items.
- Disposal of used packing material will be allowed on payment of
duty on transaction value.
|
| Reconditioning/ repair, &
Re-engineering |
6.16 |
EOU / EHTP / STP / BTP units may be set
up with approval of BoA
and to carry out reconditioning, remaking, testing, calibration,quality improvement, up-gradation of technology and
re-engineering activities for export in foreign currency. Provisions of
paragraphs
6.8, 6.9, 6.10, 6.13, 6.14 of FTP and para 6.29 of HBP v1 shall not, however,
apply to such activities. |
| Replacement/ Repair of
Imported/ Indigenous Goods |
6.17 |
- General provisions of FTP relating to export / import of
Repair of replacement / repair of goods would also apply equally to imported/
EOU / EHTP / STP / BTP units. Cases not covered by these Indigenous Goods
provisions shall be considered on merits by DC.
- Goods sold in DTA and not accepted for any reasons, may be brought back for
repair / replacement, under intimation to concerned jurisdictional Customs /
Excise authorities.
- Goods or parts thereof, on being imported / indigenously procured and found
defective or otherwise unfit for use or which have been damaged or become
defective subsequently, may be returned and replacement obtained or destroyed.
In the event of replacement, goods may be brought back from foreign suppliers or
their authorized agents in India or indigenous suppliers. The unit can take free
of cost replacement (duty paid) from the authorized agents in India of foreign
suppliers, provided the defective part is re- exported or destroyed. However
destruction shall not apply to precious and semi precious stones and precious
metals.
|
| Exit from EOU Scheme |
6.18 |
- With approval of DC, an EOU may opt out of scheme.
EOU Scheme Such exit shall be subject to payment of Excise and Customs duties
and industrial policy in force.
- If unit has not achieved obligations, it shall also be liable to
penalty at the time of exit.
- In the event of a gem and jewellery unit ceasing its operation, gold and
other precious metals, alloys, gem and other materials available for manufacture
of jewellery, shall be handed over to an agency nominated by DoC, at a price to
be determined by that agency.
- An EOU/EHTP/STP/BTP unit may also be permitted by Development Commissioner,
to exit from the scheme at any time on payment of duty on capital goods under
the prevailing EPCG Scheme for DTA Units. This will be subject to fulfillment of
positive NFE criteria under EOU scheme, eligibility criteria under EPCG Scheme
and standard conditions indicated in HBP v 1.
- Unit proposing to exit out of EOU scheme shall intimate DC and Customs and
Central Excise authorities in writing. Unit shall assess duty liability arising
out of debonding and submit details of such assessment to Customs and Central
Excise authorities. Customs and Central Excise authorities shall confirm duty
liabilities on priority basis, subject to the condition that the unit has
achieved positive NFE, taking into consideration the depreciation allowed. After
payment of duty and clearance of all dues, unit shall obtain “No Dues
Certificate” from Customs and Central Excise authorities. On the basis of “No
Dues Certificate” so issued by the Customs and Central Excise authorities, unit
shall apply to DC for final debonding.
In case there is no proceeding pending under FT(D&R) Act, DC shall issue final
debonding order within a period of 7 working days. Between “No Dues Certificate”
issued by Customs and Central Excise authorities and final debonding order by
DC, unit shall not be entitled to claim any exemption for procurement of capital
goods or input. Unit can, however, claim Advance Authorisation / DEPB / Duty
Drawback. Since the duty calculations and dues are disputed and take a long
time, a BG / Bond / Installment processes backed by BG, shall be provided for
expediting the exit process.
- In cases where a unit is initially established as DTA unit with machine
procured from abroad after payment of applicable import duty, or from domestic
market after payment of excise duty, and unit is subsequently converted to EOU,
in such cases removal of such capital goods to DTA after deboning would be
without payment of duty. Similarly, in cases where
a DTA unit imported capital goods under EPCG Scheme and after completely
fulfilling export obligation gets converted
into EOU, unit would not be charged customs duty on capital
goods at the time of removal of such capital goods in DTA
when debonding.
- An EOU / EHTP / STP / BTP Unit may also be permitted by Development
Commissioner to exit under Advance Authorization as a one time option. This will
be subject to
fulfillment of positive NFE criteria.
|
| Conversion |
6.19 |
- Existing DTA units, may also apply for conversion into an
EOU / EHTP / STP / BTP unit, and Income Tax benefits under Section 10A and 10B
will be available for plant, machinery and equipment already installed.
- Existing EHTP / STP units may also apply for conversion / merger to EOU unit
and vice-versa. In such cases, units will remain in bond and avail exemptions in
duties and taxes as applicable.
|
| Monitoring of NFE |
6.20 |
Performance of EOU / EHTP / STP / BTP units shall be
monitored
by Units Approval Committee as per guidelines in HBP v1. |
| Export through |
6.21
|
EOU/EHTP/STP/BTP are permitted to: Exhibitions/
Export Promotion
- Export goods for holding / participating in exhibitions
abroad
Tours/Export through with permission of DC.
showrooms abroad/
- Personal carriage of gold / silver / platinum jewellery,
Duty Free Shops precious, semi-precious stones, beads and articles.
- Export goods for display / sale in permitted shops set up abroad.
- Display / sell in permitted shops set up abroad, or in showrooms of their
distributors / agents.
- Set up showrooms / retail outlets at International Airports.
|
| Personal Carriage |
6.22
|
Import / export through personal carriage of gem and
jewellery items
of Import/Export may be undertaken as per Customs procedure. Export proceeds
Parcels Including shall, however, be realized through normal banking channel.
Import
through Foreign / export through personal carriage by units, other than gem and
bound Passengers jewellery units, shall be allowed provided goods are not in
commercial quantity.
An authorized person of Gems & Jewellery EOU may also import Gold in
primary form, upto 10Kgs. in a financial year through Personal carriage,
as per guidelines prescribed by RBI and Department of Revenue. (This
para is inserted by
DGFT NOTIFICATION No 88/2008, Dated 26.02.2009.)
|
| Export/Import |
6.23
|
Goods including free samples, may be exported / imported by
by Post/Courier airfreight or through Foreign Post Office or through courier, as
per
Customs procedure. |
| Administration of EOUs / Powers of
Development Commissioner |
6.24
|
Details of administration of EOUs and powers of are given in HBP v1.
Development
Commissioner |
| Revival of Sick Units. |
6.25 |
Subject to a unit being declared sick by appropriate authority, proposals for revival of the unit or its take over may be considered
by BoA . |
| Approval of EHTP/STP |
6.26 |
In case of units under EHTP / STP Schemes, necessary approval / permission under relevant paragraphs of this Chapter shall be granted
by officer designated by Ministry of Communication and Information Technology,
Department of Information Technology, instead of Development Commissioner, and
by Inter-Ministerial Standing Committee (IMSC) instead of BoA. |
| Approval of BTP |
6.27
|
Bio-Technology Parks (BTP) would be notified by DGFT on
recommendations of Department of Biotechnology. In case of units
in BTP, necessary approval / permission under relevant provisions of this
chapter will be granted by designated officer of Department
of Bio-Technology. |