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?

AI Summary

No Penalties for Export Oriented Units Meeting Positive NFE After Exit Order; No Duty Interest Applicable. A query was raised regarding whether duty interest applies to an Export Oriented Unit (EOU) that has received an 'In principle Exit Order' after achieving positive Net Foreign Exchange (NFE). The concern was about potential penalties if 70% of export obligations were met and the absence of a separate bond officer. The response clarified that under the current Foreign Trade Policy (FTP), achieving positive NFE is required, and there is no concept of export obligation for EOUs. Therefore, no penalties or interest are applicable if positive NFE is achieved.