Net Foreign Exchange requirement governs EOUs' duty free entitlements and compliance for imports, exports and reporting obligations. The Scheme prescribes application and approval procedures for EOUs, EHTPs, STPs and BTPs, issues LoP/LoI as primary authorization, requires execution of a Legal Undertaking, and vests specified administrative, adjudicatory and monitoring powers in Development Commissioners and designated officers. Duty free import and domestic procurement of inputs and capital goods are allowed subject to utilization, temporary removal and sectoral conditions. Units must achieve positive Net Foreign Exchange calculated by FOB exports minus CIF imports and foreign payments, maintain detailed accounts and periodic digitally signed reports, and failure to comply attracts penalties and potential cancellation of permissions.