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EXPORT ORIENTED UNITS (EOUs) ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs) SOFTWARE TECHNOLOGY PARKS (STPs) SCHEME AND BIO-TECHNOLOGY PARKS (BTPs).

Chapter 6 - Hand Book of Procedure - DGFT - Chapter 6 - CHAPTER 6 6.00 Scheme Policy relating to EOUs, EHTPs, STPs and BTPs Schemes is given in Chapter 6 of Foreign Trade Policy (FTP). 6.01 Application / Approval / Renewal of approval (a) For setting up an EOU, three copies of application as in ANF 6 A of Appendices & ANFs may be submitted to DC. (b) Applications for setting up units under EOU scheme shall be approved or rejected by Units Approval Committee within 15 days, as per criteria in .....

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t 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 Electronics & Information Technology - DeitY). Application for setting up EHTP / STP unit shall be in format prescribed by DeitY and shall be submitted to officer designated by DeitY. (e) BTP can be set up by Central Government, State Government, Publi .....

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dollar terms, Net Foreign Exchange (NFE) earnings, limitations, if any, regarding sale of finished goods, by-products and rejects in DTA and such other matter as may be necessary and also impose such conditions as may be required. (g) LoP / LoI issued to EOU / EHTP / STP / BTP units by concerned authority would be construed as an authorization for all purposes. Standard format for LoP for EOU is given in Appendix 6 D of Appendices & ANFs. (h) EOUs shall have separate earmarked premises for s .....

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nue, DC will extend approval period. If no intimation in this regard is received from unit within a period of six months of expiry of approval period, DC will take action, suo motu, to cancel approval under EOU scheme and take further action in this regard. Where units give their option to continue after expiry of six months as stipulated above, DC will grant extension after obtaining approval of BOA. 6.02 Legal Undertaking (LUT) (a) Approved EOU / EHTP / STP / BTP unit shall execute an LUT with .....

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ta communication links or in form of physical exports (which may be through courier service also), including export of professional services. (b) 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 7 working days of date of shipment. (c) Exporter shall have flexibility to .....

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ious and semi-precious stones upto 5% of value of imported or indigenously procured goods to DTA against valid Gems & Jewellery REP as applicable on payment of appropriate duty is also permitted. 6.04 Import / Domestic Procurement of Goods Goods permitted to be imported / procured from DTA shall include: (a) Raw materials, components, consumables, intermediates, spares and packing materials . (b) Capital goods, whether new or second-hand, including inter-alia following and their spares: (1) .....

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tem, panel for electricals and special data transmission cable. (6) Security Systems (7) Tools, jigs, fixtures, gauges, moulds, dyes, instruments and accessories. (c) Raw materials for making capital goods for use within unit. (d) Others including: (1) Prototypes and technical samples for existing product(s) and product diversification development or evaluation. (2) Drawings, blue prints, charts, microfilms and technical data. (3) Office equipment, including PABX, Fax machines, projection system .....

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and granite sector units in EOU may supply / transfer capital goods and inputs in farm / fields / quarries with prior intimation to jurisdictional Customs / Central Excise authorities, provided ownership of goods rests with EOUs. Granite sector would also be allowed to take spares upto 5% of value of Capital Goods to quarry site. 1[(b) Procedure as prescribed under Customs / Central Excise rules for EOUs and units in EHTP / STP / BTP will be followed. ] (c) (i) The period of utilisation of good .....

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or for manufacture of oils and oleoresins of pepper, cardamom and chillies (and not for simple cleaning, grading, re-packing 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. (d) Goods already imported / shipped / arrived before issue of LoP / LoI are also eligible for duty free clearance under E .....

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s is beyond 2% of input quantity, use of such inputs shall be allowed by the jurisdictional DC within a period of three months from the date of and based on self declared norms, with the unit undertaking to adjust self-declared / ad hoc norms in accordance with norms as finally fixed by Norms Committee in DGFT; (iii) in case of any difficulty in fixation of SION as above, BOA in consultation with Norms Committee in DGFT, will decide on a case to case basis. 6.07 Taking out of Fax Machines / Lapt .....

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two in number, imported / procured duty free in their registered / administrative office subject to DoR guidelines. (d) For IT and IT enabled services, persons authorized by software units may access facility installed in EOU / EHTP / STP / BTP unit through communication links. 6.08 Facility of working from a place outside the unit Person(s) / employee(s) authorized by a unit of (i) IT related EOU or (ii) STP or (iii) EHTP or (iv) BTP may work from a place outside the said unit, subject to the .....

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is, shall also be taken into account for purpose of calculation of NFE as defined in FTP. 6.10 Net Foreign Exchange (NFE) Earnings (a) EOU / EHTP / STP / BTP unit shall be a positive net foreign exchange earner. NFE earnings shall be calculated cumulatively in the block period as per Paragraph 6.04 of FTP, according to the formula given below. Items of manufacture for export specified in LoP / LoI alone shall be taken into account for calculation of NFE. Positive NFE = A - B> 0 Where NFE is N .....

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onsumables, parts and packing materials. (b) If any goods are obtained from another EOU / EHTP / STP / BTP / SEZ 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 . (c) 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, unde .....

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t. 6.11 Maintenance of Accounts (a) EOU / EHTP / STP / BTP unit shall maintain proper account, and shall file digitally signed quarterly and annual report as prescribed in Annexure to Appendix 6 E of Appendices & ANFs to DC / Designated Officer in DeitY / DoBT and Customs and Central Excise authorities. (b) Unit shall be able to account for entire quantity of each category of homogenous goods imported / procured duty free, by way of exports, sales / supplies in DTA or transfer to other SEZ / .....

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Appendices & ANFs. Performance of EHTP / STP / BTP shall be monitored by DeitY / DoBT jointly with jurisdictional Central Excise / Customs authority. 6.13 Conversion of Scrap / Dust / sweeping of Gold / Silver / Platinum into Standard Bars Scrap / dust / sweeping of gold / silver / platinum may be sent to Government of India Mint / private mint from EOU / EHTP / STP units and returned to them in standard bars in accordance with procedure prescribed by Customs authorities, or may be permitted .....

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or compliance with any requirements to which importer may be subject to under other laws or regulations. 6.15 Supplies to other EOU / EHTP / STP / SEZ / BTP Units Supplies to other EOU / EHTP / STP / BTP / SEZ units shall be counted towards NFE provided that such goods are permissible for procurement by these units. 6.16 Transfer of Power from one Unit to another Transfer of power from Captive Power plants (DG Sets) from one unit of EOU / EHTP / STP / BTP unit to another is permitted as prescri .....

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, application shall be made to DC concerned. Such supplies to EOUs are not treated as deemed exports for purpose of any of deemed export Benefits 6.18 Application for grant of entitlements Application for grant of all entitlements may be made to DC concerned. 6.19 Export through Other Exporters An EOU / EHTP / STP / BTP unit may export goods manufactured / software developed by it through other exporter, or any other EOU / EHTP/ STP / BTP / SEZ unit subject to condition that: (a) Goods shall be .....

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at which goods are supplied by EOUs to other exporter or other EOU / EHTP / STP / BTP / SEZ unit. (e) All export entitlements, including recognition as Status Holder would accrue to exporter in whose name foreign exchange earnings are realized. However, such export shall be counted towards fulfilment of obligation under EOU / EHTP / STP / BTP scheme only. 6.20 Others Entitlements (a) FOB value of export of an EOU / EHTP / STP / BTP unit can be clubbed with FOB value of exports of its parent comp .....

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of Government. Requirements of other conditions of exports like 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 a .....

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d synthetic stones having zero duty) shall be allowed to be taken out for sub - contracting. (iii) Receive plain gold / silver / platinum jewellery from DTA / EOU / SEZ units in exchange of equivalent quantity of gold / silver / platinum, as the case may be, contained in said jewellery. (iv) EOUs shall be eligible for wastage as applicable as per Paragraph 4 A.2 of HBP for sub - contracting and against exchange. (v) DTA unit undertaking job work or supplying jewellery against exchange of gold / .....

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t, no such excise registration is required and export may be effected either from job worker s premises or from premises of unit. Export of such products from job worker s premises shall not be allowed through third parties as provided in FTP. (d) EOUs may be permitted to remove moulds, jigs, tools, fixtures, tackles, instruments, hangers and patterns and drawings to premises of sub - contractors, subject to condition that these shall be brought back to premises of units on completion of job wor .....

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ue of intermediate goods; supported with documents like (a) sale price contract / or invoice for the finished goods, (b) job work contract and (c) the basis of arriving at the value of intermediate goods. The EOU / EHTP / BTP / STP unit shall also ensure full repatriation of foreign exchange declared as the transaction value of the finished goods cleared from the sub - contractor s premises abroad. 6.22 Contract Farming EOUs engaged in production / processing of agriculture / horticulture / aqua .....

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e / 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. 6.23 Export through Exhibitions / Export Promotion Tour 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 le .....

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e counted from date of close of last exhibition. In case of exhibition in USA, the time period shall be 90 days instead of 60 days mentioned above. (d) In case of personal carriage of goods and for holding / participating in overseas exhibitions, value of such gems and jewellery shall not exceed US $ 5 million. 6.24 Personal Carriage of Gems and Jewellery for Export Promotion Tours Personal carriage of gold / silver / platinum jewellery, cut and polished diamonds, precious, semi-precious stones, .....

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ops Export of goods is also permitted for display / sale in permitted shops set up abroad or in showrooms of their distributors / agents. Items not sold abroad within 180 days shall be re-imported within 45 days. 6.26 Sale through Showrooms / Retail outlets at International Airports EOUs may set up showrooms / retail outlets at International Airports for sale of goods in accordance with procedure laid down by Customs authorities. Items remaining unsold after a period of 60 days shall be exported .....

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s, 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:- (i) Copy of Shipping Bill; (ii) Bank Certificate of Export and Realisation. (c) 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 iss .....

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ir with permission of Customs authorities. Any foreign exchange payment for this purpose will also be allowed. However, no permission will be required for sending capital goods for repair within country. (b) EOU / EHTP / STP / BTP units may, on basis of records maintained by them and prior intimation to Customs authorities: (i) Transfer goods to DTA / abroad for repair / replacement, testing or calibration and return. (ii) Transfer goods for quality testing / R&D purpose to any recognised la .....

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payment of applicable duties. (b) Remove samples without payment of duty, on furnishing a suitable undertaking to Customs authorities for bringing back samples within a stipulated period. (c) An EOU may export free samples, without any limit, including samples made in wax moulds, silver mould and rubber moulds through all permissible mode of export including through courier agencies / post. For statutory requirement of Stability & Retention sample with manufacturer, an EOU / EHTP / BTP / ST .....

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may be allowed by Customs authorities concerned to donate imported / indigenously procured (bought or taken on loan) computer and computer peripherals, including printer, plotter, scanner, monitor, keyboard and storage units without payment of duty, two years after their import / procurement and use by units, to a school run by Central Government, or Government of a State or, a Union Territory or, a local body; an Educational Institution run on non-commercial basis by any organization; a Registe .....

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n industrial enterprise is operating both as a domestic unit as well as an EOU / EHTP / STP / BTP unit, it shall have two distinct identities with separate accounts, including separate bank accounts. It is, however, not necessary for it to be a separate legal entity, but it should be possible to distinguish imports and exports or supplies effected by EOU / EHTP / STP / BTP units from those made by other units of enterprise. 6.32 Unit Approval Committee for EOUs (a) Composition of Unit Approval C .....

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Development & Regulation) Act, 1951 shall be considered by BOA. (ii) to consider and permit conversion of units in SEZ to EOU; (iii) to monitor performance of units; (iv) to supervise and monitor permission, clearances, licences granted to units and take appropriate action in accordance with law; (v) to call for information required to monitor performance of unit under permission, clearances, licenses granted to it; (vi) to perform any other function delegated by Central Government or its ag .....

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s amended, in respect of STP / EHTP as mentioned in Gazette Notification No. S.O. 106 (E) dated 30-1-2006. Similarly in case of units under BTP, necessary approval / permission shall be granted by officer designated by DoBT. However, designated officers shall adopt criteria for automatic approval of new units as laid down in Appendix 6 A of Appendices & ANFs. 6.34 Administration of EOUs / Powers of DC / Designated Officer DC / Designated Officer shall have following powers in respect to unit .....

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oP 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 .....

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provision of broad banding; (11) Exercise powers of adjudication under Section 13 read with Section 11 of FT (D&R) Act, in respect of EOUs as mentioned in Gazette Notification No. SO. 194(E) dated 6.3.2000; (12) Do valuation of exports declared on SOFTEX form by EOUs as per RBI A.D. (M.A Series) Circular AP (DIR series Circular No.9 dated 25.10.2001); (13) Issue eligibility certificates for grant of employment visa to low level foreign technicians to be engaged by EOUs as per Ministry of Ho .....

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de number for EOUs, if same has already not been allotted to entity; (16) Green Card Issue of Green Card automatically after execution of LUT; (17) Grant / renewal of Status Certificate in respect of EOUs provided it does not involve clubbing of FOB value of exports of its parent company in DTA; (18) Publicity of EOU / EHTP / STP / BTP Scheme under their jurisdiction. 6.35 Change of Location / Inclusion of Additional Location with BOA Approval BOA may consider change of location of EOU / EHTP / .....

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Computer peripherals in 5 years and 10 years in case of other items. (a) Depreciation Norms for Computers and Computer Peripherals: 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. (b) Depreciation Norms for Other Capital Goods: For capital goods, other than above, depreciation rate would be as follows: 4% for every q .....

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case there is an outstanding export commitment under EPCG scheme / Advance Authorization Scheme, it will follow the procedure laid down in Appendix 6 M of Appendices & ANFs. (b) Existing EHTP / STP / BTP units may also apply for conversion / merger to EOU unit and vice-versa. In such cases, units will continue to avail permissible exemption in duties and taxes as applicable under relevant scheme. EHTP / STP / BTP units desiring conversion as an EOU may apply to DC concerned through Officer .....

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f sick units are given in Appendix 6 L of Appendices & ANFs. 6.40 Fast Track Clearance Procedure (a) Eligibility: EOUs having a status holder certificate under FTP shall be eligible for Fast Track Clearance Procedure. (b) Examination of Import Cargo: Status holder units shall be exempted from examination of import cargo at port of import. However, jurisdictional Commissioner of Customs / Central Excise may examine consignments at unit s place on random basis. (c) Domestic procurement and imp .....

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onal Asstt. / Deputy Commissioner of Customs or Central Excise.] (e) Procurement of DG sets: Procurement of DG set of capacity commensurate with actual requirement of unit shall be permitted under intimation to DC and jurisdictional Central Excise authority. (f) Temporary removal of Capital Goods: Eligible EOU may remove their capital goods or parts thereof for repairs under prior intimation to jurisdictional Asst. / Deputy Commissioner of Customs or Central Excise. (g) Personal carriage of samp .....

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carriage of Gems & Jewellery for export promotion tours subject to fulfilment of conditions of Paragraph 6.24 of HBP. However, prior intimation thereof needsto be given. 6.41 Time Bound Disposal of Applications DC shall dispose off applications expeditiously. Following time schedule shall normally be followed to dispose off applications provided application is complete in all respects and is accompanied with prescribed documents. S. No. Category of Application Time limit for disposal (days) .....

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