Meaning of Export Oriented Unit (EOU)

What is Export Oriented Unit (EOU)


In this article, the information about Export Oriented Unit (EOU) is explained here.

Imports by EOU


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

  1. 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).
  2. 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
  3. 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.
  4. 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.
  5. EOU gem and jewellery units may also source gold/silver/platinum through the nominated agencies.
  6. 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

The information provided here is about Export Oriented Unit (EOU).  If you would you like to add more information about Export Oriented Unit (EOU), share below your thoughts.



PRABAGAR: explanation of EOU

s.murali: DTA unit supply to products 100% EOU interstate unit, GST applicable or not.

Ramanuja: I request for your advise on export of Steel Scrap/waste/remnants from our EOU. We import Stainless Steel Round Bars in different diameters and lengths from USA for manufacturing engineering parts/assemblies and export from our EOU. The raw material come from USA on job work basis. As per para 6.08 (e) of FTP, Scrap/waste/remnants may be exported. Either we can sell the scrap in DTA as per standard input Output Norms (if available) or on ad-hoc norms fixed by Development Commissioner. Our product do not have SION and our scrap rate working out to about 72% of input material. We want to export back the scrap to supplier (raw material received for job work but we cleared the goods without following job work notification as the import duty is exempted for EOU). Can you please advise on the following: • Do we have to pay export duty on Steel Scrap (probably HSN for this would be 72042190 or 72044100) ? • If so what would be the percentage of basic export duty and IGST? • Any Social welfare Cess is applicable? • Can we use any port/airport for export? Look forward to have your valuable advise on the above.

ram: Do you have any registration process with user and password please guide. Do you have any case laws on the role of freight forwarder as well Customs broker. I wish to read further on EOU unit who do import of capital goods and return the same if defective. If you could support on this will be a part of my work to enrich my knowledge on this field further please

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