De-bonding of goods/ exit from EOU scheme

De-bonding of capital goods: duty payable subject to depreciation and positive NFE requirement on exit.

De-bonding and exit from the EOU scheme require Development Commissioner permission and payment of duty with exemption only on depreciated value; capital goods clearance is allowed on duty payment subject to straight-line quarterly depreciation and a positive NFE requirement, with depreciation and duty payable pro rata to achieved or non-achieved NFE. Migration to EPCG or Advance Authorization is permitted only if positive NFE is fulfilled. Units obtain in-principle de-bonding, self-assess duty liability, submit details to Customs/Central Excise, and obtain a No Dues Certificate following confirmation by the authority.