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          Central Excise

          Requirement of Bank Guarantee by EOU

          100% Export Oriented Unit Scheme - 100% EOU Scheme (OLD)

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          Bank guarantee requirement: EOUs must furnish full or reduced bank guarantees sending duty free goods for job work, depending on processing. Export Oriented Units sending duty free goods to the domestic tariff area for job work must furnish bank guarantees: a full bank guarantee to cover duty forgone where raw material is sent without processing, and a reduced bank guarantee equal to half the duty where goods are sent after processing.
                            Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                              Provisions expressly mentioned in the judgment/order text.

                                  Bank guarantee requirement: EOUs must furnish full or reduced bank guarantees sending duty free goods for job work, depending on processing.

                                  Export Oriented Units sending duty free goods to the domestic tariff area for job work must furnish bank guarantees: a full bank guarantee to cover duty forgone where raw material is sent without processing, and a reduced bank guarantee equal to half the duty where goods are sent after processing.


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