wheather duty intrest is applicable for the eou unit which acived 'In principle Exit order from Dc'

[syed Anwar Hussain]

Sir,

Wheather duty intrest is applicabe for the EOU unit which acived positiveNFE and got 'in principle Exit Order'? IF 70% of Export obligation has been accived what will be penalty impossed? If No seperate bond officer placed for the unit Recovery charges will be recovered or not?

[RadheyShyam Mangal]

In the present FTP, there is requirement of achieving NFEP and there is no concept of Export Obligation for EOU. If the EOU has achieved positive NFEP, no penal action can be initiated. The question of interest also does not arise.

AI Summary

NFEP compliance negates duty interest and penal action for EOU units upon in-principle exit. Compliance with the Foreign Trade Policy requires EOUs to achieve a positive Net Foreign Exchange Position (NFEP); the policy does not use an export obligation for EOUs. If an EOU has achieved positive NFEP, penal proceedings and duty interest cannot be initiated under the FTP, and questions of recovery or penalties are therefore precluded by that compliance.