What is Inter Unit Transfer (IUT) in STP

 The information provided here is part of Online Export Import course 


Inter Unit Transfer under EOU and STP


I hope those who have been with units under EOU and STP know the term – Intern Unit Transfer – IUT. What is IUT and how does Intern Unit Transfer work in movement of goods under EOU and STP?


What is Inter Unit Transfer (IUT) in STP or 100% EOU


What is Inter Unit Transfer (IUT) in STP copy

Inter unit transfer under STP means, transfer of goods from one STP unit to another STP unit. As you know, an STP unit is a customs bonded area and movement of goods from one customs bonded area to another bonded customs area is allowed with necessary permission from STPI and 100%EOU


Inter Unit Transfer from STP to STP can be on permanent basis or loan basis. Each transfer has to be maintained in a register and proper inward and outward entry need to recorded with the supervision of customs officials.

Inter Unit Transfer - A simplified


Ok, let us  explain about Inter Unit Transfer in simple language.  As I have mentioned above, IUT is the terms commonly used in a unit under STP or Export oriented unit - EOU.   As you know,  any goods arrived in a  STP unit or EOU unit moves to a customs bonded area at the unit where in  such goods can be moved only after necessary approval from Customs officials.   Any permitted import materials including locally procured does not attract duty amount directly.  Such unit  is not allowed to sell goods locally in Domestic Tariff Area - DTA.   However, the goods at STP/EOU can  move goods from one STP/EOU to another STP/EOU by obtaining necessary permission from authorities.  

An application has to be filed with the authorities to effect Inter Unit Transfer with details of transfer to be effected along with the purchase order copy and pro forma invoice. After obtaining necessary permission, the movement of goods from one STP unit to another STP is allowed either physical escort of authorities or under specified Bond.

I hope, I could explain about Inter Unit Transfer of goods from one unit to another. 

Would you like to share your experience about Intern Unit Transfer – IUT - under EOU/STPI.


Comment below your thoughts on IUT – Inter Unit Transfer.


The above information is a part of Export Import Online Tutorial

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Rohit Patt : Hello, Could you please share some information for Intel Unit Transfer of typically Non Bonded Assets owned by an STPI Unit from the compliance perspective. Thanks

Kalidas: Hi, Thanks for your brief information about IUT.

vikram: As per rule 30(15) of SEZ Rules 2006, a unit or developer may procure goods and services from another Unit located in the same or any other Special Economic Zone, subject to listed conditions therein. We would like to know whether Inter Unit Transfer transactions of goods between two SEZ Units within the same Zone below the cost price at which it was imported / procured, will attract customs duty. Shall be grateful if you can kindly help us in the above matter.

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