Special Benefits to Export Oriented Units (EOU)

 

Special Benefits to Export Oriented Units (EOU)

 

There are many advantages, financial assistance and other supports from various government agencies, Banks and other agencies for Export Oriented Units.  Some of them are given below:

 

No license required for import.

Exemption from Central Excise Duty in procurement of capital goods, raw-materials, consumables spares etc. from the domestic market.

 

Exemption from customs duty on import of capital goods, raw materials, consumables spares etc.

 

Reimbursement of Central Sales Tax (CST) paid on domestic purchases.

 

Supplies from DTA to EOUs treated as deemed exports.

 

Reimbursement of duty paid on furnace oil, procured from domestic oil

companies to EOUs as per the rate of drawback notified by the Directorate General of Foreign Trade.

 

100% Foreign Direct Investment permisisible.

 

 Exchange earners foreign currency (EEFC) Account

 

Facility to retain 100% foreign exchange proceeds in EEFC Account.

 

Facility to realize and repatriate export proceeds within twelve months.

 

Further extension in time period can be granted by RBI and their authorized dealers.

 

Re-export of imported goods found defective, goods imported from foreign suppliers on loan basis etc.

 

Exemption from industrial licensing requirement for items reserved for SSI sector.

 

Profits allowed to be repatriated freely without any dividend balancing requirement

 

Access to Domestic Market upto 50% of FOB value of export on concessional rate of duty.

 

Duty free goods to be utilized in two years. Further extension granted on liberal basis.

 

Job work on behalf of domestic exporters for direct export allowed.

 

Conversion of existing Domestic Tariff Area ( DTA) unit into an EOU permitted.

 

Can Procure duty-free inputs for supply of manufactured goods to advance licence holders.

 

Suppy of ITA-I items in the domestic market which would be counted for fulfillment of NFE.

 

EOUs in agriculture and horticulture engaged in contract farming may be permitted to take out duty free goods listed in Appendix 14-I to the fields of contact farmers for production.

 

Useful Information Links:

 Process of application for registration under GST Act to obtain GSTIN
Different application Forms for registration under Goods and Service Tax Act (GSTIN)
 Application for registration under GST Act to obtain GSTIN
GST registration and returns filing procedures for PSUs and Government entities
Re-registration of GST, Goods and Service Tax.
 Cancellation of registration of GST
All about registration of GST in India, FAQ
Cancellation of GST Registration in India, FAQ
Can a person without GST registration claim ITC?
 Why separate Registration of GST in each state in India, for each business.
 Latest date to file GST registration in India
Procedures to obtain GST registration for non-resident taxable person
Is digital signature option available under registration of GST in India?
 Advantages of GST registration in India
Who has to obtain GST registration in India?     
Does GST registration number of my firm change time to time in India?
 Is GST registration required for a public sector undertaking?
 Is amendment of GST registration allowed in India?
 Cancellation of GST registration in India
Centralized GST registration of services permitted in India?
 Retired from business ownership. Fresh GST registration in India?
 GST Registration for Job workers in India
GST registration mechanism in India

The role of Reserve Bank of India

The Role of the International Chamber of Commerce (ICC)
Negotiation procedures and formalities of export bills
Non receipt of Cargo Arrival Notice, Can importer sue against shipping company
OBJECTIVES OF CUSTOMS CONTROL for EXPORT GOODS

OBL not released OBL not surrendered no telex release

Payment procedures in Triangular exports
Who is Stevedores
Who receives the amount of auctioned / resold imported unclaimed/un-cleared goods?
Why demurrage/detention waiver period is required at destination for import
Why do carriers balance weight and volume while charging freight amount in Exports?
Why does Palletization require?
Why labeling and marking in Export business?
The term FCL. What is FCL means
The term LCL. What does LCL mean?
Tips to exporters on Documentation
How does First Appraisement system of import customs clearance procedures work?
How does Letter of Credit work?
How does STP units work in India?
How does TT (Telegraphic Transfer) work?
Transferability of Bill of Lading
Transhipment - A redefinition        
Travelers to India under import duty exemption, Frequently Asked Questions Part 2




Comments


SANJIB KUMAR MAHARANA: we have an existing DTA unit. We have converted a certain part to EOU. Now our question is as follows: 1) Whether we have to take separate Central Excise registration ? 2) Whether we have to take separate Sales Tax (State Tax) registration ? Kindly, clarify us with specific guidelines. Thanking you

Bala: Is it possible to convert a 100% EOU in to a SEZ to avail zero tariff benefit for imports to avoid working capital block up for EOU due to introduction of GST. Is the company necessarily to be located in a special economic zone.

Senthil Kumar: Sir we are a EOu Unit , could u plz clarify us whether PQ is exempted for imports goods . as FSSAI has given waiver for 100 % Eou Unit

ceevyr: what is the documentary evidence for export of goods from EOU to DTA apart from transport document. any BoE / Shipping Bill would be generated for this kind of transaction.

DHANESH KUMAR: Can anyone please forward me the notification which shows FSSAI waiver for 100% EOU

shrikant kadam: give medetails of100% exportunits benifits indina

raj: Any one clarify that if EOU unit purchase raw material through FORM A , but sales made for EXport as well as Domestic . its correct or not otherwise having any relaxation for Export sales VS Domestic sales

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