Monitoring of export performance / foreign exchange realization - CBEC's Customs Manual 2023 - Customs

11. Monitoring of export performance / foreign exchange realization: 11.1 The EOUs basically function under the administrative control of the Development Commissioner of the SEZ as per the jurisdiction notified by the Ministry of Commerce. The Development Commissioner is the licensing authority in respect of EOU. In respect of STP / EHTP units, the designated officer (Director) of the Ministry of Communication and Information Technology is the licensing authority. These authorities are also responsible for monitoring the export performance of the units in terms of Para 6.12 of HBP read with Appendix 6F of FTP. 11.2 The concept of NFEP and EP has been replaced with Net Foreign Exchange Earning (NFE) from 2003-04. Further, duty liability is fixed in proportion to shortfall in NFE. Now the unit has to achieve a positive NFE i.e. their foreign exchange earning has to be more than the foreign exchange outflow. The NFE is calculated cumulatively in the block of 5 years. If the unit is not NFE positive, Development Commissioner is required to inform the Customs authorities for recovery of the proportionate duty. This provision is not only more equitable but also prevents a unit to become unviable on account of huge demand without taking into account the exports performance achieved. 11.3 The Development Commissioner is responsible for monitoring foreign exchange realization/remittances of EOUs in coordination with the General Manager, RBI concerned. [Refer RBI Circular No. COEXD.3109/05.62.05/1999-2000, dated 21-2-2000] 11.4 The Unit Approval Committee headed by the Development Commissioner is responsible for monitoring the performance of EOUs.