TMI BlogEXPORT ORIENTED UNITS (EOUs), ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs), SOFTWARE TECHNOLOGY PARKS (STPs) SCHEME AND BIO-TECHNOLOGY PARKS (BTPs).X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued by DC / designated officer to EOU/ EHTP / STP / BTP unit. LoP / LoI shall have an initial validity of 2 years to enable the Unit to construct the plant install the machinery and by this time the unit should have commenced production. In case the unit is not able to commence production in initial validity of 2 years, an extension of one year may be given by the DC for valid reasons to be recorded in writing. Subsequent extension of one year may be given by the Unit Approval Committee subject to condition that two thirds of activities including construction, relating to the setting up of the Unit are complete and Chartered Engineer s certificate to this effect is submitted by the Unit. Further extension, if necessary, will be granted by the Board of Approval. 3 [ All such LOPs/LOIs whose original or extended validity expires on or after 1st March 2020, may be deemed to be valid up to 31st December, 2020. ] Once unit commences production, LoP / LoI issued shall be valid for a period of 5 years for its activities. This period may be extended further by DC for a period of 5 years at a time. (c) Proposals for setting up EOU requiring industrial licence may be granted approv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pproval 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 DC / Designated Officer concerned as in Appendix 6 E of Appendices ANFs. (b) All EOU / EHTP / STP / BTP units should have permanent e-mail address. No LUT for new units shall be executed unless unit has its permanent e-mail address and digital signature on said e-mail ID. In event of an EOU not having permanent e-mail address and digital signature, further imports and DTA sale shall not be permitted by DC. 6.03 Export of Goods and Services (a) Software units may undertake exports using data 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 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... platinum or silver jewellery for export after repairs / remaking. 6.06 Conditions of Import Import of goods by EOU / EHTP / STP / BTP units shall be subject to following conditions: (a) Goods shall be imported into EOU / EHTP / STP / BTP premises. However, agriculture and allied sectors and granite sector units in EOU may supply / transfer capital goods and inputs in farm / fields / quarries with prior intimation to jurisdictional Customs 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. (b)Procedure as prescribed under Customs/Central Excise rules for EOUs and units in EHTP / STP / BTP will be followed, and appropriate bond executed with Customs/Central Excise Authorities. (c) (i) The period of utilisation of goods, including capital goods, shall be co-terminus with the validity of LoP. (ii) 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 firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y install personal computers not exceeding two in number, imported / procured duty and/or tax 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 following conditions: (i) There must be an Authorisation from the unit specifying the duration of such authorization. (ii) Responsibility for carrying out the work and supervision, if any, be that of the unit, which will be liable for any misuse. (iii) Export of the resultant products / services would take place only from the premises of the unit. 6.09 Leasing of Capital Goods Value of imported capital goods financed through leasing companies or obtained free of cost and / or on loan / lease basis, shall also be taken into account for purpose of calculation of NFE as defined in FTP. 6.10 Net Foreign Exchange ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Appendices ANFs in the 'Service Exports Reporting Form (SERF)' prescribed in Annexure VI of Appendix 6E of Appendices ANFs to the designated officer in STP. Use of SERF would be limited to capturing information on services ex orts from STPs. ] (b) Unit shall be able to account for entire quantity of each category of homogenous goods imported / procured duty and/or tax free, by way of exports, sales / supplies in DTA or transfer to other SEZ / EOU / EHTP / STP / BTP units and balance in stock. However, at no point of time, units shall be required to correlate every import consignment with its exports, transfer to other SEZ / EOU / EHTP /STP / BTP units, sales in DTA and balance in stock. Any matter for clarification as to whether goods are homogenous or not shall be decided by Units Approval Committee. 6.12 Monitoring of NFE Performance of EOUs shall be monitored by Units Approval Committee as per guidelines given in Appendix 6 F of Appendices ANFs. Performance of EHTP / STP / BTP shall be monitored by DeitY / DoBT jointly with jurisdictional Customs authority. 6.13 Conversion of Scrap / Dust / sweeping of Gold / Silver / Platinum into Standard Bar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P / SEZ unit subject to condition that: (a) Goods shall be produced in EOU / EHTP / STP / BTP unit concerned. (b) Level of NFE or any other conditions relating to imports and exports as prescribed shall continue to be discharged by EOU / EHTP / STP / BTP unit concerned. (c) Export orders so procured shall be executed within parameters of EOU / EHTP / STP / BTP schemes and goods shall be directly transferred from unit to port of shipment. (d) Fulfilment of NFE by EOU / EHTP / STP / BTP units in regard to such exports shall be reckoned on basis of price 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 company in DTA or vice versa for the purpose of according Export House and Trading House status. (b) Sectoral norms as n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 work within a stipulated period. Raw materials may or may not be sent along with these goods. (e) In case of sub - contracting of production process abroad, goods may be exported from sub - contractor premises subject to conditions that at the time of clearance of goods, the EOU / EHTP / BTP / STP unit shall declare (i) the transaction value of the finished goods to be cleared from the sub - contractor s premises abroad; (ii) job work charges to be paid to the sub - contractor abroad; and (iii) value 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y EOUs, is also permitted with approval of DC subject to following conditions: (a) EOU shall bring back goods or repatriate sale proceeds within 45 days from date of departure through normal banking channel. (b) Unit shall declare personal carriage of such samples to Customs while leaving country and obtain necessary endorsement. 6.25 Export through Show-rooms abroad / Duty free shops 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 or returned to respective EOUs. 6.27 Personal Carriage of Import / Export Parcels including through Foreign Bound Passengers (a) For Personal carriage of jewellery by foreign bound passenger, following documents shall be submitted by EOUs as proof of exports: (i) Copy of shipping b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eversal of duties of Customs leviable under First Schedule to the Customs Tariff Act, 1975, if availed on inputs. (b) Remove samples without payment of duty and/or taxes 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 / STP unit may re- import with or without payment of duties/taxes as provided at para 6.01(d)(ii) of FTP those samples, which were exported by it, under intimation to Custom Authorities, and FOB value of such samples shall not be counted for NFE purpose and other export benefits, if any. (d) An EOU, on basis of records maintained by them and on prior intimation to Customs authorities, may send samples to other EOUs for display on returnable basis within a period of 30 days. 6.30 Donation of Computer and Computer Peripherals EOU / EHTP / STP / BTP unit may be allowed by Customs authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, 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 agencies; (vii) to perform any other function as may be delegated by State Governments or its agencies; and (viii) to grant all approvals and clearances for establishment and operation of EOUs 6.33 Approval of EHTP / STP / BTP Units In case of units under EHTP / STP scheme, necessary approval / permission shall be granted by officer designated by DeitY / Director (STPI). Designated officer shall also exercise powers of adjudication under Section 13 read with Section 11 of FT (D R) Act, 1992, as 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 EO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in their cases as provided for in Paragraph 2.55 of FTP. ] (15) Importer Exporter Code No. Allot Importer - Exporter Code 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 / STP / BTP unit from place mentioned in LoP to another and / or to include additional location outside territorial jurisdiction of original DC / Designated Officer, subject to such conditions as BOA may decide. 6.36 Clearance of Capital Goods in DTA Clearance of capital goods, including second hand, in DTA shall be allowed as per para 6.15(b) of FTP and import policy in force on date of such clearance. 6.37 Depreciation Norms Depreciation up to 100% is permissible for Computers and Computer peripherals in 5 years and 10 years i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner of Customs may examine consignments at unit s place on random basis. (c) Deleted (d) Installation of Fax Machine / Computers: Eligible EOUs may install one fax machine and two computers in their administrative / registered office outside premises of the unit under prior intimation to jurisdictional Asstt. / Deputy Commissioner of Customs . (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 Customs 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 samples: Personal carriage of samples of Gems Jewellery by status holder EOUs are allowed subject to limit fixed in Paragraph 6.24 without a need for prior permission from DC / Customs. (h) Activities which do not require permission: In respect of following activities of a status holder, permission will not be required from DC or jurisdictional Central Excise/Customs author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20 Wastage Norms, ad-hoc 2 21 Permission for re-import Same day 22 Permission for re-export Same day 23 Permission for replacement / repair of goods Same day 24 Allotment of I.E. Code 1 25 Authorization of softex form 1 26 Reimbursement of CST claims 7 27 Issue of GSP Certificate Same day 28 Permission for conversion of EOU to STPI, EPCG 5 29 Permission of final exit of EOU 5 30 Permission of extension of EOU 2 31 Permission to allow increase in value of CG 2 32 Permission for export through exhibition / ..... 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