i) Planing your venture:

 -          Is it on your own

 -          With foreign participation and nature of participation (foreign investment allowed 100%)

ii) What product do you intend to manufacture

 -          Product/By-product

 -          Does it requires clearance from Central/State Government authorities

 -          Is it an SSI Unit. If so, registration is required as an SSI

iii) Technology to be used

 -          Indigenous/foreign

 -          Related costs and conditions

iv) Feasibility report

 -          On your own or with help of consultant

v) The finances involved

 -          Land, structure, buildings etc (Please note, building construction material is not exempted from duty)

 -          Capital goods, machinery etc

 -          Payment for royalties etc

. -          Administration and establishment

 -          Others : like interest on loans, related taxes and levies etc.

vi) The current competition overseas 

-          Main competitors

 -          Demand and price-levels.

vii) The import laws and other requirements in target markets

 -          Any fiscal/non-fiscal barriers, like anti-dumping laws

 -          Quota restrictions

 -          Preferential treatment to competitor countries

viii) Location of the unit

 -          Whether it is located close to a port or railroad

 -          Availability of raw materials

 -          Manpower availability

 -          Environment clearance needed if unit is located 25 kms from an urban town

ix) Capital goods, machinery and equipment to be used

 -          indigenous or foreign

 -          Related costs

x) The raw materials and other inputs, like consumables etc that would be required:

 -          Source

 -          Cost

 -          Monthly, quarterly and annual requirements

xi) The production process and the related inputs

 -          Whether production process requires air-conditioning plants, special furnaces or kilns etc.

 -          Details and costs (Please note, air-conditioning equipment permitted duty free only if it is essential for production process).

xii) The production capacity and spare capacity:

 -          Do you intend to utilise the same by doing sub-contracting work for other export units in DTA or Export Oriented Unit (EOU)/Export Processing Zone (SEZ ) units.

 -          Details of sub-contractors

 -          Related costs

xiii) Any by-products turned out in the production process

 -          Details of by-products

 -          Whether these would be exported or sold in Domestic Tariff Area (DTA)

xiv) Effluents or waste-material

 -          How do you propose to treat these or discharge them.

xv) Packaging

 -          Details of packaging

 -          Source

 -          Cost

xvi) Power
 -          Whether the normal grid could supply adequate power

 -          Whether there would be need for a captive power plant

 -          Cost of power plant

 -          Fuel that would be required for captive power plant (e.g. furnace oil, LPG, coal etc).

xvii) Duties, taxes and fiscal levies both, Central and State-level

 -          Customs and Excise levies

 -          Sales tax, Octroi etc

 -          Power tariffs and duties

xviii) Other information

 -          The company should be registered

 -          A current account with a bank authorised to deal in foreign exchange should be opened.

 -          Registration-Cum-Membership Certificate (RCMC) should be obtained from the office of the concerned Development Commissioner.

 -          Sales tax registration be obtained from the Sales Tax Department

xix) Mandatory clearances from State Government's

 -          Pollution clearance certificate

 -          Approval of building plan in cases where building is proposed to be constructed.

 -          Registration as a small scale industrial unit, if applicable

 -          Registration under Factories Act

 

 

Export oriented unit setup prerequisites ensure compliance with fiscal, environmental and registration requirements for lawful operations. Establishing an Export Oriented Unit requires project planning covering ownership and foreign participation, product and technology choices, feasibility and financing for capital goods and construction, and detailed production design addressing inputs, capacity, by products and subcontracting. Compliance obligations include company registration, foreign exchange banking, RCMC, sales tax/SSI registration, factory registration and mandatory state clearances (pollution, building approval). Operational compliance extends to customs and excise duties, state levies, power supply arrangements including captive plants, and effluent/waste treatment measures.