Export Oriented Units

Export Oriented Units Scheme The Export Oriented Units (EOU) scheme was introduced to boost exports, increase foreign earnings and created employment in India. The EOU scheme is complementary to the scheme for Free Trade Zone, Export Processing Zone.

1. Application for Custom Bonding.
2. Copy of Approval Letter received from DC.
3. Copy of Green Card issued by DC.
4. List of proposed Plant & Machinery of Capital Goods attested by DC.
5. LUT executed with DC for Export Commitment.
6. Process of Manufacture (Software Development Process).

INTRODUCTION. EOU (export oriented unit) scheme is one of the export promotion schemes of Govt of India and is in existence since 1980. ▶ Under this scheme, manufacturing or service sector units are allowed to be set up. with the objective of exporting entire production of goods manufactured or services.

Minimum Investment Criterion Letter of Permission (LOP) to set up EOU or for conversion of existing DTA unit into EOU is given by the jurisdictional Development Commissioner with whom LUT under the FTP is required to be executed.

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 …

Permission for Job work – 100% Export Oriented Unit Scheme – 100% EOU Scheme – Central Excise. The permission for job work is granted by the jurisdictional Assistant Commissioner of the EOUs. The permission is valid for one year. The goods sent for job work has to be brought back to the unit within a period of 90 days.

Difference between EOU and SEZ An EOU can be set up anywhere in the country, provided it meets the scheme’s criteria. On the other hand, an SEZ is a specially demarcated enclave that is deemed to be outside the Customs jurisdiction and therefore, a foreign territory.

Letter of Permission (LOP)/Letter of Intent (LOI) issued to SEZ units as per standard format indicated at Appendix-14-IE. In case of any change in approved activity or undertaking any new activity by SEZ units, the Development Commissioner shall issue amended LOP within six days on receiving intimation from the unit.

As per the SPECIAL ECONOMIC ZONES ACT, 2005, SEZ Developer means a person who, or a State Government which, has been granted by the Central Government a letter of approval under sub-section (10) of section 3 and includes an Authority and a Co-Developer (the Developer or Co-Developer shall have at least twenty-six …

Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. 2. Who can set up SEZs? Any private/public/joint sector or State Government or its agencies can set up Special Economic Zone (SEZ).

SEZ Online system will be a web based application that will enable the users to carry out various functions using internet. Every application submitted through SEZ Online system shall be assigned a unique identification no. (System generated) which may be used to track the status of the application henceforth.

Introduction. Units importing goods into the SEZ are required to submit Bill of Entry (BOE) with the Customs Specified Officer at the Office of the Development Commissioner. The unit can prepare and submit BOE to the DC Customs Office through SEZ Online system.

Clearance of Samples : The units in SEZ are allowed to supply or sell in DTA samples of goods produced by them for display or market promotion on payment of applicable duties. The units are also allowed to take out samples into DTA without payment of duty on returnable basis for the purpose of display/market promotion.

In the meantime, sourcing from domestic area may be permitted by units in the SEZs which are allowed to do trading, subject to this circular being cited and on production of an undertaking by the concerned unit that no income tax benefits will be availed by the unit for trading, except in the nature of re-export of …

SEZ Benefits

• Creation of Economic enclave to cater overseas market.
• Generation of employment opportunities.
• Promotion of investment – domestic and foreign.
• Significant Foreign Exchange Earnings through exports.
• Development of world class infrastructure facilities.

The main objectives of the SEZ Act are: generation of additional economic activity. promotion of exports of goods and services. promotion of investment from domestic and foreign sources.

GST Laws on SEZ Any supply of goods or services or both to a Special Economic Zone developer/unit will be considered to be a zero-rated supply. That means these supplies attract Zero tax rate under GST. In other words, supplies into SEZ are exempt from GST and are considered as exports.

Steps to claim GST refund supplies made to SEZ unit/SEZ developer. Supplies to an SEZ unit/SEZ developer can be made in two ways. It can be done with the payment of tax and subsequently claiming a refund thereof. Alternatively, it can be done without payment of tax since they are zero-rated supplies.

An exporter furnishing LUT’s is required to furnish fresh LUT for each financial year. If the conditions mentioned in LUT are not satisfied within the time-limit, the privileges are revoked and the exporter will have to furnish bonds. Export of goods to a country outside India without payment of IGST.

Welcome to Special Economic Zone

The future of India’s largest free-trade zone, the 10,000-hectare Mumbai Special Economic Zone (MSEZ) in Maharashtra’s Raigad district, appeared to be in jeopardy on Friday after the Supreme Court refused to give MSEZ — promoted by Mukesh Ambani (52) and expected to cost Rs 40,000 crore — more time to acquire land for …

Telangana

Tamil Nadu

State-wise distribution of approved SEZs

State/Union Territory	Formal Approvals	Exporting SEZs (Central Govt. + State Govt./Pvt. SEZs + notified SEZs under the SEZ Act, 2005)
Telangana	68	30
Uttar Pradesh	23	13
West Bengal	7	7
Total	417	238

At present there are eight functional SEZs located at Santa Cruz (Maharashtra), Cochin (Kerala), Kandla and Surat (Gujarat), Chennai (Tamil Nadu), Visakhapatnam (Andhra Pradesh), Falta (West Bengal) and Noida (Uttar Pradesh) in India. Further an SEZ in Indore (Madhya Pradesh) is now ready for operation.

5,400 SEZs

China

In SEZs, “… foreign and domestic trade and investment are conducted without the authorization of the Chinese central government in Beijing” with “tax and business incentives to attract foreign investment and technology”.

They are located in the cities of Shenzhen, Zhuhai and Shantou of Guangdong Province and the city of Xiamen of Fujian Province . Politically, the special economic zones are based on assurance of China’s state sovereignty and governing authority is entirely in China’s hands.