TaxTMI 
TaxTMI 
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?
TRADING IN EOU
30 Dec 2015 
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Trading in EOUs permitted only for legacy units with prior authorization subject to strict non DTA and non transfer conditions.
Trading activities in EOUs are generally prohibited; duty free procurement must be used for manufacture for export to meet export obligations. An administrative exception permits pre existing trading EOUs with a valid Letter of Permission to import for trading, subject to prohibitions on sale into the domestic tariff area, export via merchant exporters, transfer to other EOUs or EHTP/STP/SEZ units, and removal outside bonded premises for jobwork. The Foreign Trade Policy separately excludes trading units from certain export schemes. (AI Summary)
Trading activities in EOUs are generally prohibited; duty free procurement must be used for manufacture for export to meet export obligations. An administrative exception permits pre existing trading EOUs with a valid Letter of Permission to import for trading, subject to prohibitions on sale into the domestic tariff area, export via merchant exporters, transfer to other EOUs or EHTP/STP/SEZ units, and removal outside bonded premises for jobwork. The Foreign Trade Policy separately excludes trading units from certain export schemes. (AI Summary)