Do's

1. The development / production of the unit under the scheme shall be carried on in a customs bonded area.
   
2. Starting of production within the gestation period allowed under the STP scheme and starting exports. Intimate STPI of the date of commencement of commercial production within 30 days. If commercial production and exports are not commenced within a period of 3 years from the issue of the letter of approval (LOP) given for the establishment of the unit under the Scheme, the Latter of Permission (LOP) Lapes automatically after the expiry of 3 years.
   
3. The unit shall be a Net Foreign Exchange(NFE) earner and NFE should be positive over the period of 5 years.
   
4. The unit shall realize the amounts due for the exports made within 180 days from the date of export, or the due date under the contract, whichever is earlier.
   
5. On failure of exporters the STP unit will be liable to pay the customs duty and central excise duty on the goods procured and  other penalties and liquidated damages as may be decided by the Government.
   
6. External Commercial Borrowings(ECB) are resorted to, required permission from Ministry of finance.
   
7. To maintain separate accounts for the operation under the STP scheme.
   
8. Maintain prescribed records and document.
   
9. Apply to STPI for clearance in the following cases:
   • For any change of address, change of name or constitution of the unit.
   • For extension of premises for carrying out the operation.
   • For shifting of equipment from the bonded warehouse for repairs, temporary transfer, permanent transfer, inter unit transfer, disposal, etc.
   • For exporting the imported equipment for repairs / replacement.
   • For re-export of equipment imported on loan basis.
   • For enhancing the limit of capital goods to be imported.
   • For obtaining permission for sales in DTA.
   • For debonding of the equipment / debonding of the unit.
   • For reimbursement of CST.
   • For sale of imported capital goods and materials.
   • For disposal of obsolete equipment.
   • For donation of obsolete equipment.
     
10. Pay the dues to STPI on time.
    
11. Submit the Quarterly / Annual performance reports in the prescribed form, on time.

DONT's

1. Please do not utilize uncovered equipment under  duty free for any activity.
   
2. Please do not carry on any operation not covered under the STP scheme in the customs bonded warehouse premises.
   
3. Data circuit is meant exclusively for the purpose of transmission of data between two designated locations and sub-lease to any company or re-engineering to any other location is strictly prohibited.
   
4. As per the Indian Telecommunications Act, Data circuit should not be used for voice purpose.