Net Foreign Exchange compliance governs EOUs, setting NFE calculation and import use, reporting, and monitoring obligations. Framework prescribes approval, staged validity and renewals of Letter of Permission / Letter of Intent for EOUs/EHTPs/STPs/BTPs, execution of a Legal Undertaking, and distinct accounting identities. Duty and tax free imports of inputs and capital goods are allowed subject to Customs/Central Excise procedures, utilisation periods co terminus with LoP, and consumption based on SION with interim self declared norms. Units must be positive earners of Net Foreign Exchange, computed by crediting FOB exports and debiting CIF imports, capital goods and foreign payments, with monitoring, reporting and amortisation rules and specified sectoral conditions.