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EOU

Mahmad Ganchi (Export Import Executive) (26 Points)

25 September 2010

What Is EOU setup ? and Who can Apply for the same ? please describe with the example & how much fees for it ?

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RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 25 September 2010

REGARDING EOU

The needs for higher level of technological and industrial progress made the Government devise a series of export promotional schemes. EOU & SEZ Schemes are one among them, which provides an internationally competitive duty free environment coupled with better infrastructural facilities for export production.

Export Oriented Units (EOUs) now constitute a very important sector in the country’s Export Production scenario. They have become dominant players in our export strategy, and their share in the Country’s export performance is about 10%. The export growth rate of 30% compares very favorably with the National export growth rate.

Who is eligible to become an EOU?

An EOU can be set up by any entrepreneur for manufacturing of goods and also for rendering services. An EOU can be set up for repair, reconditioning, re-making and re-engineering also.

Trading activity is not allowed in the EOU Scheme.

EOU unit is required to achieve only positive Net Foreign Exchange (NFE) over a period of 5 years.

Policy for EOU is given in Chapter-6 Foreign Trade Policy and Chapter 6 of Handbook of Procedure (Vol. – I)2009-2014

All applications are to be filed with the concerned Development Commissioner of Special Economic Zone (For jurisdiction of Development Commissioner) Appendix 14-I- K

The unit/ promoter has to apply in the application form, to be given in triplicate given in Handbook of Procedures in Appendix 14-1A (Please click here)

Project Report including a write up on the background of the promoters establishing their credentials and standing.

Please see Appendix 14-1B (Please click here) for documents required by the Development Commissioner for approval.

For sector specific conditions Please see Appendix 14-1C (Please click here)

DD for Rs. 5,000/- drawn in favour of The Pay & Accounts Officer, Ministry of Commerce and Industry, Department of Commerce, payable at the Central Bank of India, Udyog Bhavan, New Delhi.

Registration –cum-Membership Certificate (RCMC) should be obtained from the office of the concerned Development Commissioner.

Import Export Code: If the unit does not have an Import Export code (IEC), it will apply in the prescribed form (Appendix 18-B) to the Zone Administration for the same.