TaxTMI 
TaxTMI 
ours unit has got Inprinciple exit order from the Development commissioner in favour of eou exit .We have paid all customs and central excise duty as per central excise officials. we want to know wheather de bonding will be done now or after final exit order issued by Dc.We want know that wheather penalitywill be imposed on us as we done minimum export obligation is 0.70milion usd and ours export is 10 time than the imported capital goods. please give us suggestion.
EOU exit debonding will be done after the final exit order?
16 Mar 2012 
5 Replies 
17204 Views Asked by
Debonding procedure requires clearance of customs and excise dues before final debonding order, restricting duty free procurement.
EOU debonding requires written intimation to Development Commissioner and jurisdictional Customs/Central Excise, self assessment and submission of duty liabilities, confirmation by Customs/Central Excise and issuance of a No Dues Certificate, then application for final debonding; between No Dues Certificate and final debonding order the unit cannot procure duty free goods. Duty must be discharged (with interest) to avoid penalties, payment typically arises from account current and may convert to CENVAT credit; depreciation on capital goods is subject to export obligation limits. (AI Summary)
EOU debonding requires written intimation to Development Commissioner and jurisdictional Customs/Central Excise, self assessment and submission of duty liabilities, confirmation by Customs/Central Excise and issuance of a No Dues Certificate, then application for final debonding; between No Dues Certificate and final debonding order the unit cannot procure duty free goods. Duty must be discharged (with interest) to avoid penalties, payment typically arises from account current and may convert to CENVAT credit; depreciation on capital goods is subject to export obligation limits. (AI Summary)