Net Foreign Exchange Earning requirement mandates positive cumulative NFE over five years; duty recovery follows proportional shortfall. Net Foreign Exchange Earning (NFE) requires EOUs to be positive on a cumulative five-year basis; duty liability is fixed proportionately to any NFE shortfall and the Development Commissioner must inform Customs for recovery. The Development Commissioner monitors export performance and foreign exchange realizations, coordinating with the Reserve Bank of India, while the Unit Approval Committee oversees unit performance.