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of <h1>Government mandates strict segregation between Export Oriented Units and Domestic Tariff Area units to prevent duty-free goods diversion</h1> A government circular addresses monitoring concerns when Export Oriented Units and Domestic Tariff Area units operate from the same or adjacent premises after partial conversion. The circular highlights risks of duty-free imported goods being diverted from export units to domestic units, potential transfer of production between units for tariff concessions, and misuse of equipment across units. Since customs officers cannot maintain constant physical presence, complete segregation between units is emphasized. The circular mandates careful monitoring of partial conversion facilities, regular preventive checks to prevent unauthorized utilization of export unit facilities for domestic manufacturing, and maintenance of separate accurate records for each unit type.
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