AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
EXPORT ORIENTED UNITS (EOUs), ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs), SOFTWARE TECHNOLOGY PARKS STPs) SCHEME AND BIO-TECHNOLOGY PARKS(BTPs)
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.... cases, approval may be granted by DC after clearance by Board of Approval (BoA). 6.3.3 Proposals for setting up EOU requiring industrial licence may be granted approval by DC after clearance of proposal by BoA (as per Appendix 14-I-D) and Department of Industrial Policy and Promotion (DIPP) within 45 days on merits. 6.3.4.1 STP / EHTP complexes can be set up by Central Government, State Government, Public or Private Sector Undertakings or any combination thereof, duly approved by Inter-Ministerial Standing Committee (IMSC) in Ministry of Communication and Information Technology (Department of Information Technology). Application for setting up EHTP / STP unit shall be in format prescribed by Ministry of Communication and Information Technology (Department of Information Technology - DoIT) and shall be submitted to officer designated by DoIT. 6.3.4.2 BTP can be set up by Central Government, State Government, Public or Private Sector Undertakings or any combination thereof. Application for setting up of BTP shall be submitted to Department of Bio-Technology (DoBT) and such applications which meet guidelines prescribed by DoBT will be approved and recommended to DGFT for not....
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....nal services. 6.5.2 EOUs shall be permitted to export jewellery on basis of a notional rate certificate issued by nominated agency. This rate will be based on prevailing Gold / US$ rate and US$ / INR rate in notional rate certificate. Certificate issued by nominated agency should not be older than ^5[7 working days] of date of shipment. 6.5.3 Exporter shall have flexibility to fix price and repay gold loan within 180 days from date of export. Price shall be communicated to nominated agencies who will issue a certificate showing final confirmation of rate to bank negotiating document, to ensure export proceeds are realized at this rate. 6.5.4 Gem & Jewellery and Jewellery EOUs may re-export imported goods and export domestically procured goods, including goods generated out of partial processing / manufacture. Besides, supply of unsuitable / broken cut and polished diamonds, precious and semi-precious stones upto 5% of value of imported or indigenously procured goods to DTA against valid Gem & Jewellery REP as applicable on payment of appropriate duty is also permitted. Import/Domestic Procurement of Goods 6.6.1 Goods permitted to b....
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.... / EHTP / STP / BTP units within a period of three years or as may be extended by Customs authorities. However, imported tea shall be utilized within a period of 6 months from date of import. Similarly, export obligation against import of items {covered by Chapter 9 of ITC(HS)} and coconut oil shall be fulfilled within a period of 90 days from the date on which first import consignment is cleared by Customs Authorities. ^2[However, in case of import of spices for VA purpose like crushing/grinding/sterilization or for manufacture of oils and oleoresins of pepper, cardamom and chillies (and not for simple cleaning, grading, repacking etc.), EO shall be fulfilled within 120 days from the date of importation of first consignment. In case of import of spices (other than pepper, cardamom and chillies) for manufacture of spice oils and oleoresins, EO shall be fulfilled within 12 months.] ^8[However, for imports completed up to 31.12.2008, Export Obligation Period (EOP) shall be 150 days from the date of clearance.] (d) Goods already imported / shipped / arrived before issue of LoP / LoI are also eligible for duty free clearance under EOU / EHTP / STP / BTP schem....
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....tter of Permission (LoP) / Letter of Intent (LoI) alone shall be taken into account forcalculation of NFE. Positive NFE = A - B> 0 Where 'NFE' is Net Foreign Exchange; 'A' is FOB value of exports by EOU/EHTP/STP/BTP unit; 'B' is sum total of CIF value of all imported inputs and CIF value of all imported capital goods, and value of all payments made in foreign exchange by way of commission, royalty, fees, dividends, interest on external borrowings / high sea sales during first five year period or any other charges. It will also include payment made in Indian Rupees on high sea sales. "Inputs" mean raw materials, intermediates, components, consumables, parts and packing materials. 6.10.2 If any goods are obtained from another EOU / EHTP / STP / SEZ / BTP unit, or procured from an international exhibition held in India, or bonded warehouses or precious metals procured from nominated agencies, value of such goods shall be included under 'B'. 6.10.3 If any capital goods are imported duty free or leased from a leasing company, received free of cost and / or on loan basis or transfer, CIF value of capital goods shall be included pro-rata, under 'B' for period it....
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....ty, on basis of gold / silver / platinum content, as may be notified by Customs authorities. DTA supplies 6.14 Notwithstanding provision of DTA sales in Para 6.8 of FTP, such DTA sales shall not affect application, to any goods, of any other prohibition or regulation affecting import thereof in force at the time, when such goods are imported. This also does not confer any immunity, exemption or relaxation at any time from any commitment or compliance with any requirements to which importer may be subject to under other laws or regulations. Supplies to other EOU/EHTP/STP/ SEZ/BTP units 6.15 Supplies to other EOU / SEZ / EHTP / STP / BTP units shall be counted towards NFE provided that such goods are permissible for procurement by these units. Transfer of Power from one unit to another 6.16 Transfer of power from Captive Power plants (DG Sets) from one unit of EOU / EHTP / STP / BTP to another is permitted as prescribed in sector specific condition in Appendix 14-I-C. Supply of precious / semiprecious / Synthetic stones from DTA 6.17 Supplier of precious and semi-precious stones, synthetic ston....
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.... minimum export price / export in consumer pack etc. as per ITC(HS) shall apply in case raw materials are sourced from DTA and exported without further processing / manufacturing by EOU. Export of textile items shall be covered by bilateral agreements. Wood based units shall comply with direction of Supreme Court contained in its order dated 12.12.1996 in Writ (civil ) No 202 of 1995 -T.N. Godavarman Thirrumulppad v/s Union of India and others with WP(Civil) No 171 of 1996 in regard to use of timber / other wood. Sub-Contracting 6.21.1 Sub-contracting by EOU gems and jewellery units through other EOUs, or SEZ Units, or units in DTA, shall be subject to following conditions:- (a) Goods, finished or semi finished, including studded jewellery, taken out for sub- contracting shall be brought back to unit within 90 days. (b) No cut and polished diamonds, precious and semiprecious stones (except precious, semi-precious and synthetic stones having zero duty) shall be allowed to be taken out for sub-contracting. (c) Receive plain gold / silver / platinum jewellery from DTA / EOU / SEZ units in exchange of equivalen....
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....oms authorities, take out inputs and equipments (specified at Appendix 14-I-J) to DTA farm subject to following conditions:- (a) Supply of inputs by EOUs to contract farm(s) shall be subject to input-output norms approved by DGFT / BoA. (b) There shall be contract farming agreement between EOUand DTA farmer(s). (c) Unit has been in existence for at least two years and engaged in export of agriculture / horticulture /aquaculture products; otherwise it shall furnish bank guarantee equivalent to duty foregone on capital goods /inputs proposed to be taken out to Deputy / Assistant Commissioner of Customs / Central Excise, till unit completes two years. Export through Exhibitions/Export Promotion tour 6.23 EOU / EHTP / STP / BTP units may export goods for holding / participating in exhibitions abroad, with permission of DC, subject to following conditions:- (a) Unit shall produce to Customs authorities letter in original, or its certified copy containing approval of DC. For gems and jewellery items, a self-certified photograph of products shall also be submitted. (b) In case of re-import, such items, on arrival shall be verified along with export documen....
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....oms at time of his arrival; and (c) Foreign Exchange Realisation / Encashment Certificate from Bank. 6.27.3 In addition to this, Personal Carriage by foreign bound passenger on Document Against Acceptance (DA) / Cash On Delivery (COD) basis is also allowed. EOUs will have to furnish following documents as proof of exports:- (a) Copy of Shipping Bill; (b) Bank Certificate of Export and Realisation. 6.27.4 Procedure for personal carriage of import parcels will be same as for import of goods by airfreight except that parcels shall be brought to Customs by EOUs / foreign national for examination and release. Instructions issued by Customs authorities in this regard should be followed mutatis mutandis. 6.27.5 Personal carriage of parts by foreign bound passengers shall be allowed in case same are required for repairs of exported goods at customer site. Following documents should be submitted as proof of exports:- (a) Permission letter from Customs for exports. (b) Invoice with value (for payment or free of charge). Replacement / Repair of imported / indigenous goods 6.28.1 Units may send capital goods abroad for repair with permission of Customs authorities....
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....a State or, a Union Territory or, a local body, an Educational Institution run on non-commercial basis by any organization, a Registered Charitable Hospital, a Public Library, a Public Funded Research and Development Establishment, a Community Information Center run by Central Government or, Government of a State or, a Union Territory or local body, an Adult Education Center run by Central Government or, Government of a State or, a Union Territory or a local body, or an organization of Central Government or, a Government of a State or, a Union Territory as per Customs / Central Excise notification. Destruction of goods 6.31 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 Custom 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. Distinct Identity 6.32 If an indust....
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....x 14-I-K. (1) Conversion of sick / closed DTA unit into EOU; (2) Conversion of EOU to STP / EHTP / BTP and vice-versa as per prescribed procedure; (3) To allow increase in value of capital goods in terms of Indian Rupees, on account of foreign exchange rate fluctuations; (4)To permit capacity enhancement without any limit in caseof de-licensed industries only; (5) Permit broad-banding for similar goods and activities mentioned in LoP or to provide for backward or forward linkages to existing line of manufacture; (6) Authorize change in name of company or implementing agency and change from a company to another provided new implementing agency / company undertakes to take over assets and liabilities of existing unit; (7) Permit change of location from place mentioned in LoP to another and / or include additional location provided that no change in other terms and conditions of approval is envisaged and that new location is within territorial jurisdiction of DC / Designated Officer; (8) Extend validity period of LoP by three years beyond initial validity period of LoP (except in case where there is a restriction on initial period of approval, like setting up o....
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.... Depreciation norms for Computers and Computer peripherals 6.36.2 Depreciation for computers and computer peripherals shall be as follows: 10% for every quarter in first year; 8% for every quarter in second year; 5% for every quarter in third year; 1% for every quarter in fourth and fifth year. Depreciation norms for other Capital goods 6.36.3 For capital goods, other than above, depreciation rate would be as follows: 4% for every quarter in first year; 3% for every quarter in second and third year; 2.5% for every quarter in fourth and fifth year, 2% for every quarter thereafter. Conversion 6.37.1 Existing DTA units, may also apply for conversion into an EOU /EHTP / STP / BTP unit, but no concession in duties and taxes would be available under scheme for plant, machinery and equipment already installed. On conversion, they would get Income Tax concessions but limited to period of 10 year from original commencement of manufacture or that prescribed under Section 10 of Income Tax Act whichever is earlier. For this purpose, DTA unit may apply to DC / Designated Officer co....
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.... be permitted under intimation to DC and jurisdictional Central Excise authority. Temporary removal of Capital Goods 6.39.6 Eligible EOU units may remove their capital goods or parts thereof for repairs under prior intimation to jurisdictional Asstt. / Deputy Commissioner of Customs or Central Excise. Clearance of rejects in DTA 6.39.7 Request for permission for DTA clearance of rejects shall be considered by jurisdictional Excise Authority on priority basis. Personal carriage of samples 6.39.8 Personal carriage of samples of Gems & Jewellery by status holder EOUs are allowed subject to limit fixed in Para 6.24 without a need for prior permission from DC / Customs / Central Excise. Activities which do not require permission 6.39.9 In respect of following activities of a status holder, permission will not be required from DC or jurisdictional Central Excise authority: DTA sale of finished products in terms of para 6.8(a) of FTP; Participation in exhibition and Personal carriage o....