Debonding from EOU scheme requires Development Commissioner approval and settlement of duties or security for penalties before exit. Debonding from the EOU Scheme requires Development Commissioner approval (in principle subject to conditions) and Central Excise clearance before final exit. The unit must discharge applicable customs and excise duties on all stocks, with capital goods payable on depreciated value, and must satisfy penalty obligations or furnish bank guarantees/stay orders or execute prescribed legal undertakings where appeals or penal proceedings exist; extensions to meet conditions may be granted by the Development Commissioner.