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<h1>Units under 100% Export Scheme face show cause if NFE unmet by year 3; penalties start after year 5.</h1> If a unit under the 100% Export Oriented Unit Scheme fails to achieve positive Net Foreign Exchange (NFE) by the end of the third year, a show cause notice under the Foreign Trade (Development and Regulation) Act may be issued. However, penal action by the Development Commissioner is initiated only after five years if the unit fails to meet the NFE requirements cumulatively over this period. Although a notice can be issued after the third year, enforcement actions are taken only after the fifth year if the NFE remains unmet.