Duty exemption for export oriented units enables in bond manufacture subject to bonding, NFE performance and duty recovery. Export Oriented Units operate under Chapter 6 of the Foreign Trade Policy and related notifications to manufacture and provide services for export from customs bonded premises on the basis of a Letter of Permission and legal undertaking. They receive duty free import and domestic procurement of capital goods and inputs subject to SION or prescribed norms, execute a general B 17 bond securing duty forgone, and must achieve positive Net Foreign Exchange under monitoring by Development Commissioners. Duty liability and penal recovery apply for diversion, unauthorised DTA sale, non accountal or failure to utilise duty free goods; de bonding and DTA sale are permitted subject to prescribed concessional duty, depreciation rules and fulfillment of NFE.
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.
Duty exemption for export oriented units enables in bond manufacture subject to bonding, NFE performance and duty recovery.
Export Oriented Units operate under Chapter 6 of the Foreign Trade Policy and related notifications to manufacture and provide services for export from customs bonded premises on the basis of a Letter of Permission and legal undertaking. They receive duty free import and domestic procurement of capital goods and inputs subject to SION or prescribed norms, execute a general B 17 bond securing duty forgone, and must achieve positive Net Foreign Exchange under monitoring by Development Commissioners. Duty liability and penal recovery apply for diversion, unauthorised DTA sale, non accountal or failure to utilise duty free goods; de bonding and DTA sale are permitted subject to prescribed concessional duty, depreciation rules and fulfillment of NFE.
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