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of <h1>EOU Scheme: 100% Bank Guarantee Required for Raw Material Job Work, 50% for Processed Goods.</h1> Under the 100% Export Oriented Unit (EOU) Scheme, goods sent to the Domestic Tariff Area (DTA) for job work are duty-free. To protect revenue interests, the CBEC Circular mandates that if an EOU sends raw materials for job work without processing, the unit must provide a 100% bank guarantee covering the duty forgone. If the goods undergo some processing before being sent for job work, the unit is required to furnish a bank guarantee equivalent to 50% of the duty on the goods.
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