Duty free import for export oriented units: conditional customs bonding and performance compliance govern entitlement and recovery. The EOU Scheme allows units committed to export to import or procure inputs and capital goods duty free subject to customs bonding, execution of a multipurpose B 17 bond, adherence to sectoral notifications and EXIM Policy procedures, maintenance of prescribed records, and achievement of Net Foreign Exchange Performance and Export Performance targets; failure to comply leads to recovery of duty forgone, interest and possible penal action, while operational flexibilities include CT 3 domestic procurements, inter unit transfers, sub contracting under limits, and prescribed DTA sale and valuation concessions.