TRADING IN EOU

[SURESH KUMAR]

I need to know whether trading activities can be done in EOU. What I mean is that can an EOU by raw materials / inputs without payment of duty but clear the same to DTA on payment of applicable rate of duty on regular trading basis?

AI Summary

Can Export Oriented Units trade duty-free imports domestically? Clarification: Trading halted in 2002, exceptions for pre-2002 units. A query was raised about whether Export Oriented Units (EOUs) can engage in trading activities, specifically if they can import raw materials duty-free and sell them domestically with duty. The response clarified that trading activities in EOUs were discontinued from March 31, 2002. However, a notification allows EOUs existing before this date to continue trading under certain conditions, such as prohibiting domestic sales and exports through other exporters. Additional replies emphasized that EOUs must use duty-free imports for manufacturing goods for export, as trading units are not covered under current schemes.