The other Export Promotional Schemes issued by DGFT are:
1)100% EOU

2) Deemed Export.

What is 100 % EOU Schemes-Export Promotional Schemes(EOU)?

The Export Oriented Unit (EOU) Scheme, which had been introduced in the early 1980s remains in the forefront of country’s export production schemes. The scheme has witnessed many changes over the last twenty-four years in the context of ever changing economic realities. However, the basic premise remains the same. This premise is that the exporters are treated as a special class and given the required tariff, non-tariff and policy support to facilitate their export efforts. Thus, today the EOU Scheme has emerged as a dynamic policy initiative facilitating the exporting community in the task of increased exports. The EXIM Policy, 2002-07 reinforces the importance of Scheme in chapter 6 of the policy. Appendix 14 I of the Handbook of procedures (Vol.1) as amended upto 28- 1-2004 sets out the procedures and benefits of this scheme.
Categories of 100% EOU
(a) EOUs established anywhere in India and exporting 100% products except certain fixed percentage of sales in the Domestic Tariff Area (DTA) as may be permissible under the Policy.

(b) Units in Free Trade Zones in Special Economic Zones (SEZs) and exporting 100% of their products.

(c) EOUs set up in Software Technology Parks (STPs) and Electronic Hardware Technology Parks (EHTPs) of India for development of Software & Electronic Hardware.

Documents to furnish for manufacturing in Bonded warehouse u/s 58 & 65 of Customs Act, 1962.

The unit has to furnish following documents for applying to Deputy / Assistant Commissioner to grant a license of Customs Bonded warehouse and permission for manufacturing in Bonded warehouse u/s 58 & 65 of Customs Act, 1962.

List of documents required to be furnished are as follows:

1. Application for grant of licence u/s 58 & 65 of Customs Act, 1962 
(Refer to format)
2. FORM B-17 Bond …….. (Refer to B - 17 bond format)
3. Bank Guarantee …… (Refer to B.G. format)
4. Insurance Policy for Fire & Burglary …… (For capital goods)
5. Supplementary Terms and Conditions
6. Affidavit with respect to non envolvement in Customs & Central Excise Cases (Refer to format given)
7. DoE/STPI letter of approval vide ref. no. ………………………..
8. List of proposed plant, machinery & capital goods
9. Agreement with STPI / SEEPZ for Export Commitment
10. Process of Manufacture 
11. Green Card No……………………………………………………
12. Self Removal Procedure approval request letter
13. Solvency Certificate
14. List of Board of Directors
15. Lease Agreement of premises
16. Ground Plan of premises
17. IEC Certificate
18. PAN
19. Memorandum & Articles of Association

Documents for the purpose of renewal of licence

1.     Application for renewal in the prescribed Performa.

2. Solvency Certificate.

3. Export Statement.

4. B-17 Bond on Rs. 100/- Stamp Paper duly notarized irrespective of the fact whether the unit intended to make any import or not (if any enhancement of capital / indigenous goods limit or change of address)

5. Bank Guarantee (if earlier expired)

6. Supplementary terms and conditions duly accepted on Rs.100/- stamp paper duly notarized.7. Lease Agreement duly registered with the area sub - register. (Stamps)

8. Declaration for customs.

9. Insurance Policy (for Fire / Burglary)

Entitlements of EOU / EHTP / STP / BTP units are

1.    EOU / EHTP / STP / BTP units shall be entitled to following Primary Entitlements:

2.    Reimbursement of Central Sales Tax (CST) on goods manufactured in India.

3.    Simple interest @ 6% per annum will be payable on delay in refund of CST, if the case is not settled within 30 days of receipt of complete application (as in paragraph 9.10.1 of HBP v1).

4.    Exemption from payment of Central Excise Duty on goods procured from DTA on goods manufactured in India.

5.    Reimbursement of duty paid on fuel procured from domestic oil companies / Depots of domestic oil Public Sector Undertakings as per drawback rate notified by DGFT from time to time. Reimbursement of additional duty of excise levied on fuel under the Finance Acts would also be admissible.

6.    CENVAT Credit on service tax paid.

7.    EOUs can also avail of Promotional Schemes like FMS, FPS, VKGUY, etc. if they are not availing of the direct tax benefits

8.    Exemption from Income Tax as per Section 10A and 10B of Income Tax Act.

9.    Exemption from industrial licensing for manufacture of items reserved for SSI sector.

10.  Export proceeds will be realized within 12 months.

11.  Units will be allowed to retain 100% of its export earnings in the EEFC account.

12.  Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA, upon fulfillment of certain conditions.

13.  100% FDI investment permitted through automatic route similar to SEZ units.

14.  Units shall pay duty on the goods produced or manufactured and cleared into DTA on monthly basis in the manner prescribed in the Central Excise Rules.


What you can expect from us

Planetexim assists Exporters wanting to set - up a 100% EOU unit by preparing Project Report, NFE projections, along with application preparations, representation and coordination with Jurisdictional Development Commissioner office till such time that the Letter of Intent (LOI) / Letter of Purpose (LOP) is issued.Moreover we provide help in preparation and submission of regular reports / returns as required along with keep track of the NFE on year to year basis.Any EOUs wanting to opt out / exit from the Scheme may also seek our assistance in terms of Debonding, No - Objection Certificate, Exit under DEEC / EPCG Scheme, etc.

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