Scribd
Upload
36 views12 pages

Understanding Export Oriented Units

This document provides information about Export Oriented Units (EOUs) in India. It discusses what an EOU is, the eligibility criteria for setting one up, entitlements like income tax exemptions, allowed duty free imports, import documentation requirements, and import procedures. Key points include that EOUs were introduced in 1980 to boost exports, they are licensed to manufacture goods within bonded premises for 5 years, and they receive benefits like income tax exemptions, no industrial licensing requirements, and ability to import capital goods and raw materials duty free.

Uploaded by

Ruby Singh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
36 views12 pages

Understanding Export Oriented Units

This document provides information about Export Oriented Units (EOUs) in India. It discusses what an EOU is, the eligibility criteria for setting one up, entitlements like income tax exemptions, allowed duty free imports, import documentation requirements, and import procedures. Key points include that EOUs were introduced in 1980 to boost exports, they are licensed to manufacture goods within bonded premises for 5 years, and they receive benefits like income tax exemptions, no industrial licensing requirements, and ability to import capital goods and raw materials duty free.

Uploaded by

Ruby Singh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Export Oriented Units

Prepared By: RUBY SINGH

What Is Import?
An import is any goods or services brought from one country to another country in a legitimate fashion.

DOCUMENTS REQUIRED FOR IMPORT CLEARANCE


Airway Bill Invoice Packing List Cargo Arrival Notice Technical Write up I.E Cord Registration certificate Catalogue Insurance Policy for specific rate Delivery order Certificate of Origin Test Certificate Importer Declaration (GATT declaration)

Introduction on EOU

Introduced in 31st December 1980,by Ministry of Commerce. Purpose: to boost exports by creating additional production capacity.

Notification No. is 52/2003

DUTY FREE IMPORTS ALLOWED UNDER EOU SCHEME:


CAPITAL GOODS SECOND HAND CAPITAL GOODS GOODS FOR REPLACEMENT RE-IMPORT OF GOODS REPAIRED ABROAD

Decision are taken by Board Of Approvals (BOA) ,under Ministry of Commerce. EOUs are licensed to manufacture goods within the bonded premises.
Period of bond is 5 years (extendable for another 5 years with the permission of development of commissioner) The imported capital goods are allowed to be warehoused for a period of 5 years. For other goods the period is 1 year.

Eligibility Criteria
EOU can be set up by any entrepreneur for manufacturing of goods and also for rendering services. EOU can be set up for repair, reconditioning , re-engineering also. EOU unit is required to achieve only positive NFE over a period of 5 years.

ENTITLMENT OF EOU UNITS


Exemption from Income Tax as per section 10(a) and 10(b) of income tax act; Exemption from industrial licensing for manufacturing of items reserved for SSI sector. Exports proceeds will be realized within 12 months Units will not be required to furnish bank guarantee at the time of import.

Sales are allowed only of similar goods manufactured and exported.

Import Documents Required for EOU units


Letter Of Permission (LOP) Green card its validity. Attestation of capital goods. Private Bonded Warehouse (PBW) (sec 58). Inbound Manufacturing Sanction Order (IMSO) (Sec 65). B-17 bond with B.G (Bank Guarantee). B-17 block transfer from division/Procurement Certificate. Legal Agreement for 100% EOU units. (LUT)

Import Procedure For EOU


[Link] for registration to Deputy/Asst Commissioner of customs at port of import. Accompanied with following documents: a. All import document, Copy of LOP, Green card. [Link] B/E should filled and assessed at the place of import documents. 3. B-17 block transfer should be debited for movement of goods (Procurement Certificate in case if unit is located outside i.e not within the city limits)

[Link] all clearance formalities goods shall be sent to bonded premises of the EOU.
[Link] will inspect the goods to ensure their quality, marks and numbers etc and issue the re-warehousing certificate.

Salient Features
No license required for imports (except restricted items). Exemption on customs duty on imports of capital goods, raw materials, consumables, spares, packing materials etc. 100% foreign direct investment permissible. Facility to realize and repatriate export proceeds within 12 months. Even second hand plant and machinery can be imported. EOUs get up to 5 years for utilization of imported capital goods, and up to 3 years for other items.

THANK YOU

You might also like