AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
EXPORT ORIENTED UNITS (EOUs), ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs), SOFTWARE TECHNOLOGY PARKS (STPs) AND BIO-TECHNOLOGY PARKS (BTPs)
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.... 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. However, in respect of Chrome Ore/Chrome concentrate, State Trading Regime as stipulated in export policy of these items, will be applicable to EOUs. (d) EO....
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....into sale and lease back transaction with NBFC; (iv) A joint undertaking by the unit and NBFC should be given to pay duty on goods in case of violation or contravention of any provision of the notification under which these goods were imported or procured, read with Customs Act, 1962 or Central Excise Act, 1944, and that the lien on the goods shall remain with the Customs / Central Excise Department, which will have first charge over the said goods for recovery of sum due from the unit to Government under provision of Section 142(b) of the Customs Act, 1962 read with the Customs (Attachment of Property of Defaulters for Recovery of Govt. Dues) Rules, 1995. Net Foreign Exchange Earnings (NFE) 6.5 EOU / EHTP / BTP / STP unit shall be a positive net foreign exchange earner except for sector specific provision of Appendix 14-I-C of Handbook, where a higher value addition shall be required. NFE Earnings shall be calculated cumulatively in blocks of five years, starting from commencement of production. ^1Whenever a unit is unable to export due to prohibition/ restriction imposed on export of any product mentioned in LoP, the five year block period for calculation of N....
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.... approval by Development Commissioner after clearance of proposal by BoA and DIPP within 45 days. ^4[(d) Applications for conversion into an EOU/EHTP/STP/BTP unit from existing DTA units, having an investment of Rs. 50 crores and above in plant and machinery or exporting Rs. 50 crores and above annually, shall be placed before BoA for a decision.] DTA Sale of Finished Products/ Rejects/Waste/Scrap/ Remnants and By-products 6.8 (a) Entire production of EOU / EHTP / STP / BTP units shall be exported subject to following: Units, other than gems and jewellery units, may sell goods upto 50% of FOB value of exports, subject to fulfilment of positive NFE, on payment of concessional duties. Within entitlement of DTA sale, unit may sell in DTA, its products similar to goods which are exported or expected to be exported from units. However, units which are manufacturing and exporting more than one product can sell any of these products into DTA, upto 75% of FOB value of export of the specific products, subject to the condition that total DTA sale does not exceed the overall entitlement of 50% of FOB value of exports for the unit, as stipulated above.....
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....ent of positive NFE. In respect of items not covered by norms, DC may fix ad-hoc norms for a period of six months and within this period, norms should be fixed by Norms Committee. Ad-hoc norms will continue till such time norms are fixed by Norms Committee. Sale of scrap / waste / remnants by units not entitled to DTA sale, or sales beyond DTA sale entitlement, shall be on payment of full duties. Scrap / waste / remnants may also be exported. (f) There shall be no duties / taxes on scrap / waste / remnants, in case same are destroyed with permission of Customs authorities. (g) By-products included in LoP may also be sold in DTA subject to achievement of positive NFE, on payment of applicable duties, within the overall entitlement of paragraph 6.8(a). Sale of by-products by units not entitled to DTA sales, or beyond entitlements of paragraph 6.8 (a), shall also be permissible on payment of full duties. (h) EOU / EHTP / STP / BTP units may sell finished products, except pepper and pepper products and marble, which are freely importable under FTP in DTA, under intimation to DC, against payment of full duties, provided they have achieved positive NFE. An amou....
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....xemption notification issued by MoF. (f) Deleted (g) Supplies of Information Technology Agreement (ITA -1) items and notified zero duty telecom / electronic items. (h) Supplies of items like tags, labels, printed bags, stickers, belts, buttons or hangers to DTA Unit for export. (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 declines permission for export and requires the LPG to be cleared in DTA; and (b) The Ministry of Finance by a notification has permitted duty free imports of LPG for supply under the aforesaid PDS Scheme. Export through others 6.10 An EOU / EHTP / STP / BTP unit may export goods manufactured/software developed by it through another exporter or an....
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....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 atleast 3 years; and (iii) the unit: (a) has achieved positive NFE / export obligation wherever applicable; (b) has not been issued a show cause notice or a confirmed demand, during the preceding 3 years, on grounds other than procedural violations, under the penal provision of Customs Act, the Central Excise Act, the Foreign Trade (Development & Regulation) Act, the Foreign Exchange Management Act, the Finance Act, 1994 covering Service Tax or any allied Acts or the rules made thereunder, on account of fraud / collusion / willful mis-statement / suppression of facts or contravention of any of the provisions thereof; (g) 100% FDI investment permitted through Automatic Route similar to SEZ units. (h) Units shall pay duty on the goods produced or manufactured and cleared into DTA on monthly basis in the manner prescribed in the Central Excise Rules. 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 inti....
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....ansaction value or destroyed in presence of Customs / Excise authorities or returned to unit. Destruction shall not apply to gold, silver, platinum, diamond, precious and semi precious stones. (d) Sub-contracting / exchange by gems and jewellery EOUs through other EOUs or SEZ units or units in DTA, shall be as per procedure indicated in HBP v1. Sale of Unutilized Material 6.15 (a) In case an EOU / EHTP / STP / BTP unit is unable to utilize goods and services, imported or procured from DTA, it may be (i) transferred to another EOU/SEZ/ EHTP/STP/BTP unit; or (ii) disposed off in DTA with approval of Customs authorities on payment of applicable duties and submission of import authorization; 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 only when the unit has achieved positive NFE taking into consi....
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....es and precious metals. Exit from EOU Scheme 6.18 (a) With approval of DC, an EOU may opt out of scheme. Such exit shall be subject to payment of Excise and Customs duties and industrial policy in force. (b) If unit has not achieved obligations, it shall also be liable to penalty at the time of exit. (c) In the event of a gem and jewellery unit ceasing its operation, gold and other precious metals, alloys, gem and other materials available for manufacture of jewellery, shall be handed over to an agency nominated by DoC, at a price to be determined by that agency. (d) An EOU/EHTP/STP/BTP unit may also be permitted by Development Commissioner, to exit from the scheme at any time on payment of duty on capital goods under the prevailing EPCG Scheme for DTA Units. This will be subject to fulfillment of positive NFE criteria under EOU scheme, eligibility criteria under EPCG Scheme and standard conditions indicated in HBPv1. (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 E....
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....BTP units shall be monitored by Units Approval Committee as per guidelines in HBP v1. Export through Exhibitions/ Export Promotion Tours/Export through showrooms abroad/ Duty Free Shops 6.21 EOU/EHTP/STP/BTP are permitted to: (i) Export goods for holding / participating in exhibitions abroad with permission of DC. (ii) Personal carriage of gold / silver / platinum jewellery, precious, semi-precious stones, beads and articles. (iii) Export goods for display / sale in permitted shops set up abroad. (iv) Display / sell in permitted shops set up abroad, or in showrooms of their distributors / agents. (v) Set up showrooms / retail outlets at International Airports. Personal Carriage of Import/Export Parcels Including through Foreign bound Passengers 6.22 Import / export through personal carriage of gem and jewellery items may be undertaken as per Customs procedure. Export proceeds 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. ^2[An autho....