Form A - EOU

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badrinarayanan (Querist)
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03 February 2023 Hi experts. As per the Circular 35/2016-Cus dated 29th July 2016, the EOU is required to be submit details of quantity imported, consumed, re-exported and in stock in FORM A.
Can anyone clarify whether it is mandatory to furnish monthly Form A for Nil return also ??

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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07 July 2024 As per Circular 35/2016-Cus dated 29th July 2016, which pertains to the reporting requirements for Export Oriented Units (EOUs), the requirement to submit Form A (also known as Form EOU-I) is indeed mandatory. However, the circular and related provisions do not explicitly specify whether a Nil return (no imports, consumption, re-exports, or stock movements) is required to be submitted monthly.

In practice, the requirement to submit Nil returns can vary depending on the customs jurisdiction and specific instructions provided by the customs authorities overseeing the EOUs. Here are some general considerations:

1. **Customs Instructions**: Check with the customs authorities or your jurisdiction's customs office for specific instructions regarding the submission of Nil returns for Form A by EOUs. Some jurisdictions may require EOUs to submit Nil returns to ensure compliance with reporting requirements.

2. **Proactive Compliance**: As a best practice, EOUs often proactively submit Nil returns even when there are no activities to report (no imports, consumption, re-exports, or changes in stock). This helps maintain a record of compliance and ensures that there is no misunderstanding regarding the reporting obligations.

3. **Consultation with Customs Brokers or Advisors**: If you are uncertain about the requirements or whether Nil returns are necessary, it's advisable to consult with customs brokers or advisors who specialize in EOU compliance. They can provide guidance based on current practices and interpretations of local regulations.

In conclusion, while the circular mandates the submission of Form A for reporting activities related to imports, consumption, re-exports, and stock, the specific requirement for Nil returns may not be explicitly mentioned. However, submitting Nil returns can be a prudent approach to demonstrate compliance and avoid potential penalties or misunderstandings with customs authorities. Always verify with local customs offices or advisors for the most accurate and up-to-date guidance.