Conversion of DTA unit in EOU

[Narendra Soni]

Dear Experts.

A owner has two units 'A' & 'B'. Both are manufacturing excisable products.

In unit 'A', semi finished and finished products are manufactured. Finished product are sold directly from this unit,semi finished products sent to unit 'B' for further processing under Job work and exported directly from unit 'B'.

like wise this, In unit 'B', finished and semi finished products are manufactured. Finished product are sold directly from this unit,semi finished products sent to unit 'A' for further processing under Job work and returned back to unit 'B' and exported from unit 'B'.

Both the units also doing job work for other manufactures and sending for job work to other manufacturer under Notification No.214/86.

There are 20 % domestic sale and 80% export, hence owner wants to convert in EOU,please suggest procedure in details.

AI Summary

Owner Seeks Conversion of Manufacturing Units to Export Oriented Units for Enhanced Export Operations Under EOU Rules. An owner with two manufacturing units, 'A' and 'B,' seeks to convert these into Export Oriented Units (EOUs) due to a business model involving 80% exports and 20% domestic sales. Unit 'A' produces semi-finished and finished products, sending semi-finished goods to Unit 'B' for further processing and export. Unit 'B' operates similarly. Both units engage in job work for other manufacturers. For conversion to EOUs, the procedure involves applying to the Development Commissioner, obtaining a Letter of Permission, executing a Legal Undertaking, and applying for a private bonded license with the Customs/Central Excise authority.