Export Oriented Units (EOU)

Introduction

Introduced in 31st December 1980,by Ministry of Commerce.

Purpose
To boost exports by creating additional production capacity.
Notification No. is 052/2003

Duty Free Imports allowed under EOU Scheme

Second Hand Captial Goods

Repair and Return of Goods

EHTP/STPI

Decision are taken by Board Of Approvals (BOA) ,under Ministry of Commerce.
—
EOU’s are licensed to manufacture goods within the bonded premises.
—
Period of bond is 5 years (extendable for another 5 years with the permission of development of commissioner)
—
The imported capital goods are allowed to be warehoused for a period of 5 years. For other goods the period is 1 year.

Eligibility Criteria—

EOU can be set up by any entrepreneur for manufacturing of goods and also for rendering services. 

—
EOU can be set up for repair, reconditioning , re-engineering also.
—
EOU unit is required to achieve only positive NFE over a period of 5 years.

Main Objective

The main objectives of the EOU scheme is to :-
—
Increase Exports
—
Earn Foreign Exchange for the country
—
Generate additional employment

Salient Features—Exemption on customs duty on imports of capital goods, raw materials, consumables, spares, packing materials etc.
—
100% foreign direct investment permissible.
—
Even second hand plant and machinery can be imported.
—
EOU’s get up to 5 years for utilization of imported capital goods, and up to 3 years for other items.

Documents Required for EOU—

LOP (Letter of Permission)
Green card with LOP
Bonded warehouse license copy
I.E Code Registration certificate
B-17 bond with B.G (Bank Guarantee)
Require STPI Approval for STPI clearance.

Import Procedure for EOU

Application for registration to Deputy/Asst Commissioner of customs at port of import. Accompanied with following documents: 

Copy of LOP, Pvt.bonded warehouse License copy, Green card, IEC no.

The B/E should filled and assessed based on the import documents. 

B-17 block transfer should be debited for movement of goods (Procurement Certificate in case if unit is located outside i.e., not within the city limits)

After all clearance formalities goods shall be sent to bonded premises of the EOU. 

Importer have to apply for open examination of the cargo from superintendent of EOU.

The EOU Inspector will inspect the goods to ensure the quantity, marks and numbers etc and the inspector will give his report. After inspection the superintendent will verify all the documents and will issue the re-warehousing certificate.