As per Para 6.08 (a), EOU unit may clear goods by paying concessional rate of duty upto the 90% of FOB value Export and Expected to Export of a specific product.
Please clarify the obligation if the material is cleared against expected to be export basis.
Clarifying EOU Obligations: Selling Goods Domestically Under 2015-2020 Foreign Trade Policy Provisions and 'Expected to Export' Definition. A discussion in a forum addresses the obligations of Export Oriented Units (EOUs) under the Foreign Trade Policy (FTP) for 2015-2020. The primary focus is on the provisions allowing EOUs to sell goods in the Domestic Tariff Area (DTA) up to 50% of the FOB value of exports at concessional duties. If an EOU manufactures multiple products, it can clear products in the DTA up to 90% of the FOB value of the specific product exported or expected to be exported, within the overall 50% limit. Clarifications are sought on the term 'expected to export' and its implications. (AI Summary)
TaxTMI 
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