Introduction

Export Oriented Units: duty free imports, GST relief and other incentives under FTP support exclusive export production.

EOUs, governed by the Foreign Trade Policy and Handbook of Procedure, may be set up to export their entire production across a wide range of manufacturing and service activities and may export all items except prohibited goods in the ITC (HS). They are entitled to operational incentives including duty free import of raw materials and capital goods (with IGST and compensation cess relief), indigenously procured excisable goods without duty, reimbursement of central sales tax, CENVAT/ITC of GST with refund mechanisms, fast track clearance, and industrial licensing exemptions for items reserved to micro and small enterprises.