How does STP units work in India?

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How does an STP unit and EHTP unit work in India?


How to start a unit of STP Software Technology Park. How to start a EHTP Hardware Technology Park.


Procedures to set up an STP unit.


In this article, we will learn documentation procedures to start a STP unit.


Once after deciding to set up a STP or EHTP unit, the authorized personnel approaches STPI authorities to obtain a license to operate as an STP unit at the desired location. Once an STPI unit obtains the Letter of Permission (Lop), signs the Legal Agreement and Customs Bonding License, the unit is ready to commence the operation with 100% Export Oriented Unit (EOU) status under the STP/EHTP Scheme and eligible to avail the facilities and privileges admissible under the scheme.

How does STP units work in India copy

A B17 bond is executed with the authorities in whom the STP unit agrees to follow all terms and conditions of authorities. Once after the acceptance of such bond by the authorities, the letter of permission to conduct an STP is granted from which unit starts operation of work.

A particular area of place is operated as customs bonded area in the premises of STP unit. The goods moved in and moved out of such customs bonded area is monitored as per the terms and conditions of authorities which also specified in B17 bond executed at the time of obtaining license to operate as STP unit.

Proper and specified accounts registers are maintained for inward and outward movements from such customs bonded area at STP premises. Normally, the said customs bonded warehouse is locked with two different locks by keeping one key with the STP unit authorities and another key with Customs authorities.


If any materials need to be consumed for manufacture purpose, a consumption form has to be filled up and need to be entered in consumption register, subjected to approval of customs authorities.


Why STP bonded warehouse under customs control. As you know, the materials entered in to a bonded warehouse is obtained without paying any duty whether import or excisable. Under an STP scheme, all materials are exempted from customs and excise duties including the materials sourced locally. So, a control on such dutiable materials is required from customs and excise authorities as such materials are only used for the manufacture and export of STP units subjected to approval.


In India, most of the STP units appoint a consultant who specialized in this area to handle procedures and formalities. The said consultant deputes his staff at the premises of STP units and serves on behalf of the STP unit.


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Mahesh Raghuwanshi: i am intrested to doing import/export business from my place.but i have lack of knowledge about that.sir i had some difficulties to choose proper product category .please guide me what best for me

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