TaxTMI 
TaxTMI 
EXPORT ORIENTED UNITS (EOUs), ELECTRONICSHARDWARETECHNOLOGYPARKS (EHTPs), SOFTWARETECHNOLOGYPARKS (STPs) AND BIO-TECHNOLOGYPARKS (BTPs)
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....ment of the conditions indicated in ITC (HS). Procurement and supply of export promotion material like brochure / literature, pamphlets, hoardings, catalogues posters etc. upto a maximum value limit of 1.5% of FOB value of previous years exports shall also be allowed. (b) An EOU / EHTP / STP / BTP unit may import and/or procure from DTA or bonded warehouses in DTA / international exhibition held in India without payment of duty all types of goods, including capital goods, required for its activities, provided they are not prohibited items of import in the ITC (HS). Any permission required for import under any other law shall be applicable. Units shall also be permitted to import goods including capital goods required for approved activity, free of cost or on loan / lease from clients. Import of capital goods will be on a self certification basis. Goods imported by a unit shall be with actual user condition and shall be utilized for export production. (c) State Trading regime shall not apply to EOU manufacturing units. (d) EOU / EHTP / STP / BTP units may import / procure from DTA without payment of duty certain specified goods for creating a central....
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....tent authority. However, proposals for extension beyond six years shall be considered in exceptional circumstances, on a case-to-case basis by BOA. Once unit commences production, LOP / LOI issued shall be valid for a period of 5 years for its activities. This period may be extended further by DC for a period of 5 years at a time. (b) LoP / LoI issued to EOU / EHTP / STP / BTP units by concerned authority subject to compliance of provision in para 6.2 above, would be construed as an Authorisation for all purposes. (c) Unit shall execute a LUT with DC concerned. Failure to ensure positive NFE or to abide by any of the terms and conditions of LOP / LOI / IL / LUT shall render the unit liable to penal action under provisions of the FT (D&R) Act and Rules and Orders made thereunder without prejudice to action under any other law / rules and cancellation or revocation of LoP / LoI / IL. Investment Criteria (d) (d) Only projects having a minimum investment of Rs.1 Crore in Plant & Machinery shall be considered for establishment as EOUs . This shall, however, not apply to existing units and units in EHTP / STP / BTP, Handicrafts / Agriculture / Floriculture / Aq....
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....hange earned, where payment of such services is received in foreign exchange. (c) Gems and jewellery units may sell upto 10% of FOB value of exports of the preceding year in DTA subject to fulfillment of positive NFE. In respect of sale of plain jewellery, recipient shall pay concessional rate of duty as applicable to sale from nominated agencies. In respect of studded jewellery, duty shall be payable as applicable. (d) Unless specifically prohibited in LoP, rejects within an overall limit of 50% may be sold in Domestic Tariff Area (DTA) on payment of duties as applicable to sale under paragraph 6.8(a) on prior intimation to Customs authorities. Such sales shall be counted against DTA sale entitlement. Sale of rejects upto 5% of FOB value of exports shall not be subject to achievement of NFE. (e) Scrap / waste / remnants arising out of productionprocess or in connection therewith may be sold in DTA as per SION notified under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50% of FOB value of exports. Such sales shall not, however, be subject to achievement of positive NFE. In respect of items not covered by the no....
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....d services to such organizations which are entitled for duty free import of such items in terms of general exemption notification issued by MoF. (f) Supply of services (by services units) relating to exports paid for in free foreign exchange or for such services rendered in Indian Rupees which are otherwise considered as having been paid for in free foreign exchange by RBI. (g) Supplies of Information Technology Agreement (ITA -1) items and notified zero duty telecom / electronic items. ^2(h) Supplies of items like tags, labels, printed bags, stickers, belts, buttons or hangers to DTA Unit for export. ^3(i) Supply of LPG produced in an EOU refinery to Public Sector domestic oil companies for being supplied to household domestic consumers at subsidized prices under the Public Distribution System (PDS) Kerosene and Domestic LPG Subsidy Scheme, 2002, as notified by the Ministry of Petroleum and Natural Gas vide notification No. E-20029/18/2001-PP dated 28.01.2003 (hereinafter referred to as PDS Scheme) subject to the following conditions:- (a) Only supply of such quantity of LPG would be eligible for which Ministry of Petroleum and Natural Gas decli....
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....EEFC account. (f) Units will not be required to furnish bank guarantee at the time of import or going for job work in DTA, where unit has (i) a turnover of Rupees 5 crores or above; (ii) unit is in existence for at least three years; and (iii)unit is having an unblemished track record. (g) 100% FDI investment permitted through Automatic Route similar to SEZ units. Inter Unit Transfer 6.13 (a) Transfer of manufactured goods from one EOU / EHTP / STP / BTP unit to another EOU / EHTP / STP / BTP unit is allowed with prior intimation to concerned Development Commissioner and Customs authorities following procedure of in bond movement of goods. Transfer of manufactured goods shall also be allowed from EOU / EHTP / STP / BTP unit to a SEZ Developer or Unit following procedure prescribed in SEZ Rules, 2006. (b) Capital goods may be transferred or given on loan to other EOU / EHTP / STP / BTP / SEZ units with prior intimation to concerned Development Commissioner and Customs authorities. (c) Goods supplied by one unit of EOU/EHTP/STP/BTP to another unit shall be treated as imported goods for second unit for payment....
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....proval of Customs authorities on payment of applicable duties and submission of import authorisation, or (iii) exported. Such transfer from EOU / EHTP / STP / BTP unit to another such unit would be treated as import for receiving unit. (b) Capital goods and spares that have become obsolete / surplus, may either be exported, transferred to another EOU / EHTP / STP / BTP / SEZ or disposed of in DTA on payment of applicable duties. Benefit of depreciation, as applicable, will be available in case of disposal in DTA. No duty shall be payable in case capital goods, raw material, consumables, spares, goods manufactured, processed or packaged, and scrap / waste / remnants / rejects are destroyed within Unit after intimation to Customs authorities or destroyed outside Unit with permission of Customs authorities. Destruction as stated above shall not apply to gold, silver, platinum, diamond, precious and semi precious stones. (c) In case of textile sector, disposal of left over material / fabrics upto 2% of cif value or quantity of import, whichever is lower, on payment of duty on transaction value may be allowed, subject to certification of Central Excise / Customs....
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.... criteria under EPCG Scheme and standard conditions indicated in HBP V.1. (e) Unit proposing to exit out of EOU scheme shall intimate DC and Customs and Central Excise authorities in writing. Unit shall assess duty liability arising out of debonding and submit details of such assessment to customs and Central Excise authorities. Customs and Central Excise authorities shall confirm duty liabilities on priority basis. After payment of duty and clearance of all dues, unit shall obtain "No Dues Certificate" from Customs and Central Excise authorities. On the basis of "No Dues Certificate" so issued by the Customs and Central Excise authorities, unit shall apply to DC for final debonding. In case there is no proceeding pending under FT(D&R) Act, DC shall issue final debonding order within a period of 7 working days. Between "No Dues Certificate" issued by Customs and Central Excise authorities and final debonding order by DC, unit shall not be entitled to claim any exemption for procurement of capital goods or input. Unit can however, claim Advance Authorisation / DEPB / Duty Drawback. Since the duty calculations and dues are disputed and take a long time, a BG / Bo....
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....roceeds shall, however, be realized through normal banking channel. Import / export through personal carriage by units, other than gem and jewellery units, shall be allowed provided goods are not in commercial quantity. Export /Import by Post /Courier 6.23 Goods including free samples, may be exported / imported by airfreight or through Foreign Post Office or through courier, as per Customs procedure. Administration of EOUs/Power of Development Commissioner 6.24 Details of administration of EOUs and power of Development Commissioner are given in HBP v1. Revival of Sick units 6.25 Subject to a unit being declared sick by appropriate authority, proposals for revival of the unit or its take over may be considered by BoA . Approval for EHTP/STP 6.26 In case of units under EHTP / STP Schemes, necessary approval / permission under relevant paragraphs of this Chapter shall be granted by officer designated by Ministry of Communication and Information Technology, Department of Information Technology instead of Development Commissioner and by Inter-Ministerial Standing Committee (IMSC) instead of BoA. Approval of BTP 6.27 Bio-Technology Parks (BTP....