What is Export Oriented Unit (EOU)
In this article, the information about Export Oriented Unit (EOU) is explained here.
Imports by EOU
Eligibility
Units undertaking to export their entire production of goods and services, except permissible sales in the DTA, as per this Policy, may be set up under the Export Oriented Unit (EOU) Scheme, Electronic Hardware Technology Park (EHTP) Scheme or Software Technology Park (STP) Scheme for manufacture of goods, including repair, re-making, reconditioning, re-engineering, and rendering of services. No trading units shall, however, be permitted.
Export and Import of Goods
- An EOU/EHTP/STP unit may export all goods and services except items that are prohibited in ITC (HS). Export of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) shall be subject to fulfillment of the conditions indicated in the ITC (HS).
- An EOU/EHTP/STP unit may import without payment of duty all types of goods, including capital goods, as defined in the Policy, required by it for its activities as mentioned above or in connection therewith, provided they are not prohibited items of imports in the ITC (HS). The units shall also be permitted to import goods required for the approved activity, including capital goods, free of cost or on loan from clients
- STP/EHTP/EOU may import/procure from DTA without payment of duty specified goods for creating a central facility for use by software development units in STP/EHTP/EOU. The central facility for software development can also be accessed by units in the DTA for export of software.
- An EOU engaged in agriculture, animal husbandry, aquaculture, floriculture, horticulture, pisci culture, viticulture, poultry or sericulture may import/procure all types of goods, without payment of duty, required by it for its activities or in connection therewith as available to other EOUs. However, such units may be permitted to take only specified goods for use outside the bonded area.
- EOU gem and jewellery units may also source gold/silver/platinum through the nominated agencies.
- EOU/EHTP/STP unit, other than service units, may also export to Russian Federation in Indian Rupees against repayment of State Credit/Escrow Rupee Account of the buyer subject to RBI clearance, if any
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