Export Oriented Units
Export Oriented Units (EOUs) now constitute a very important sector in the country’s Export Production scenario. They have become dominant players in our export strategy, and their share in the Country’s export performance is about 10%. The export growth rate of 30% compares very favorably with the National export growth rate.
Who is eligible to become an EOU?
An EOU can be set up by any entrepreneur for manufacturing of goods and also for rendering services.
An EOU can be set up for repair, reconditioning, re-making and re-engineering also.
EOU can also be set up in Agriculture, Animal Husbandry, Aquaculture, Floriculture, Horticulture, Pisciculture
Viticulture, Poultry or Sericulture
Trading activity is not allowed in the EOU Scheme.
EOU unit is required to achieve only positive Net Foreign Exchange (NFE) over a period of 5 years.
Existing DTA units or EPCG units are permitted for conversion into EOU Scheme as one time option. In case there is an outstanding export commitment under the EPCG Scheme, it will be sub summed in the export performance (EP) of the unit.
EOU unit can be Indian set up or under Foreign collaboration with upto 100% FDI Allowed.
Firm/company should be duly registered and details about Proprietor/Partner/ Directors etc. A current account with the bank authorized to deal in foreign exchange should be opened. Sale tax/Service Tax registration to be obtained from the Sale Tax Department.
Mandatory clearances from State Government: -
Pollution clearance certificate.
Approvals 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.
power allocation and wiring approval
All applications are to be filed with the concerned Development Commissioner of Special Economic Zone (For jurisdiction of Development Commissioner) Appendix 14-I- K
The unit/ promoter has to apply in the application form, to be given in triplicate given in Handbook of Procedures in Appendix 14-1A (Please click here) ALONG WITH other Documents required under Appendix 14-1B
DD for Rs. 5,000/- drawn in favour of The Pay & Accounts Officer, Ministry of Commerce and Industry, Department of Commerce, payable at the Central Bank of India, Udyog Bhavan, New Delhi.
Registration –cum-Membership Certificate (RCMC) should be obtained from the office of the concerned Development Commissioner.
Import Export Code: If the unit does not have an Import Export code (IEC), it will apply in the prescribed form(Appendix 18-B) to the Zone Administration for the same.
After the approval from the Development Commissioner concerned, the manufacturing and other activities have to be undertaken under customs bond for which formal application is to be made to the jurisdictional Assistant Commissioner/ Deputy Commissioner of the Customs/ Central Excise for issuance of a Private Custom Bonded Warehouse Licence under section 58 and 65 of the Customs Act, 1962.
After verification of the premises and relevant documents, the requisite licence under section 58 and 65 of the Customs Act will be issued by the Assistant Commissioner/ Deputy Commissioner Customs/ Central Excise on priority basis.
B-17 bond is a multi – purpose surety bond which the unit has to execute with the Jurisdictional Assistant/ Deputy Commissioner Customs/ Central Excise on a non-judicial stamp paper of Rs. 300/-. The bond amount shall be equal to 25% of the duty foregone on the capital goods required in the next 5 years plus duty foregone on the value of raw material for a period of 3 months.
The Development Commissioner is empowered to grant approvals on the following matters: -
Import of additional capital goods
Enhancement of production capacity
Change in name/ constitutions
Change of location/expansion
Extension of validity of LOP/LOI/LOA:
Import of Office equipment:
Merger of two or more EOU/SEZ Units
Import of spares and accessories of DG sets
Eligibility certificates for grant of employment visa to low level foreign technicians to be engaged by EOUs.
Sale of goods in DTA.
De-bonding/ Exit from EOU scheme.