Basic Requirements for setting up an EOU (Check-list)

i) Planing your venture:

 -          Is it on your own

 -          With foreign participation and nature of participation (foreign investment allowed 100%)

ii) What product do you intend to manufacture

 -          Product/By-product

 -          Does it requires clearance from Central/State Government authorities

 -          Is it an SSI Unit. If so, registration is required as an SSI

iii) Technology to be used

 -          Indigenous/foreign

 -          Related costs and conditions

iv) Feasibility report

 -          On your own or with help of consultant

v) The finances involved

 -          Land, structure, buildings etc (Please note, building construction material is not exempted from duty)

 -          Capital goods, machinery etc

 -          Payment for royalties etc

. -          Administration and establishment

 -          Others : like interest on loans, related taxes and levies etc.

vi) The current competition overseas 

-          Main competitors

 -          Demand and price-levels.

vii) The import laws and other requirements in target markets

 -          Any fiscal/non-fiscal barriers, like anti-dumping laws

 -          Quota restrictions

 -          Preferential treatment to competitor countries

viii) Location of the unit

 -          Whether it is located close to a port or railroad

 -          Availability of raw materials

 -          Manpower availability

 -          Environment clearance needed if unit is located 25 kms from an urban town

ix) Capital goods, machinery and equipment to be used

 -          indigenous or foreign

 -          Related costs

x) The raw materials and other inputs, like consumables etc that would be required:

 -          Source

 -          Cost

 -          Monthly, quarterly and annual requirements

xi) The production process and the related inputs

 -          Whether production process requires air-conditioning plants, special furnaces or kilns etc.

 -          Details and costs (Please note, air-conditioning equipment permitted duty free only if it is essential for production process).

xii) The production capacity and spare capacity:

 -          Do you intend to utilise the same by doing sub-contracting work for other export units in DTA or Export Oriented Unit (EOU)/Export Processing Zone (SEZ ) units.

 -          Details of sub-contractors

 -          Related costs

xiii) Any by-products turned out in the production process

 -          Details of by-products

 -          Whether these would be exported or sold in Domestic Tariff Area (DTA)

xiv) Effluents or waste-material

 -          How do you propose to treat these or discharge them.

xv) Packaging

 -          Details of packaging

 -          Source

 -          Cost

xvi) Power
 -          Whether the normal grid could supply adequate power

 -          Whether there would be need for a captive power plant

 -          Cost of power plant

 -          Fuel that would be required for captive power plant (e.g. furnace oil, LPG, coal etc).

xvii) Duties, taxes and fiscal levies both, Central and State-level

 -          Customs and Excise levies

 -          Sales tax, Octroi etc

 -          Power tariffs and duties

xviii) Other information

 -          The company should be registered

 -          A current account with a bank authorised to deal in foreign exchange should be opened.

 -          Registration-Cum-Membership Certificate (RCMC) should be obtained from the office of the concerned Development Commissioner.

 -          Sales tax registration be obtained from the Sales Tax Department

xix) Mandatory clearances from State Government's

 -          Pollution clearance certificate

 -          Approval 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