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TMI BlogEXPORT ORIENTED UNITS (EOUs), ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs), SOFTWARE TECHNOLOGY PARKS (STPs) AND BIO-TECHNOLOGY PARKS (BTPs)X X X X Extracts X X X X X X X X Extracts X X X X ..... curement and supply of export promotion material like brochure / literature, pamphlets, hoardings, catalogues, posters etc. upto a maximum value limit of 1.5% of FOB value of previous years exports shall also be allowed. (b) An EOU / EHTP / STP / BTP unit may import and / or procure, from DTA or bonded warehouses in DTA / international exhibition held in India, without payment of duty, all types of goods, including capital goods, required for its activities, provided they are not prohibited items of import in the ITC (HS). Any permission required for import under any other law shall be applicable. Units shall also be permitted to import goods including capital goods required for approved activity, free of cost or on loan / lease from clients. Import of capital goods will be on a self certification basis. Goods imported by a unit shall be with actual user condition and shall be utilized for export production. (c) State Trading regime shall not apply to EOU manufacturing units. However, in respect of Chrome Ore/Chrome concentrate, State Trading Regime as stipulated in export policy of these items, will be applicable to EOUs. (d) EOU / EHTP / STP / BTP units may import / procure fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay duty on goods in case of violation or contravention of any provision of the notification under which these goods were imported or procured, read with Customs Act, 1962 or Central Excise Act, 1944, and that the lien on the goods shall remain with the Customs / Central Excise Department, which will have first charge over the said goods for recovery of sum due from the unit to Government under provision of Section 142(b) of the Customs Act, 1962 read with the Customs (Attachment of Property of Defaulters for Recovery of Govt. Dues) Rules, 1995. Net Foreign Exchange Earnings (NFE) 6.5 EOU / EHTP / BTP / STP unit shall be a positive net foreign exchange earner except for sector specific provision of Appendix 14-I-C of Handbook, where a higher value addition shall be required. NFE Earnings shall be calculated cumulatively in blocks of five years, starting from commencement of production. 1Whenever a unit is unable to export due to prohibition/ restriction imposed on export of any product mentioned in LoP, the five year block period for calculation of NFE earnings may be suitably extended by BoA. Letter of Permission/ Letter of Intent and Legal Undertaking 6.6 (a) On approval, a L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit from existing DTA units, having an investment of Rs. 50 crores and above in plant and machinery or exporting Rs. 50 crores and above annually, shall be placed before BoA for a decision.] DTA Sale of Finished Products/ Rejects/Waste/Scrap/ Remnants and By-products 6.8 (a) Entire production of EOU / EHTP / STP / BTP units shall be exported subject to following: Units, other than gems and jewellery units, may sell goods upto 50% of FOB value of exports, subject to fulfilment of positive NFE, on payment of concessional duties. Within entitlement of DTA sale, unit may sell in DTA, its products similar to goods which are exported or expected to be exported from units. However, units which are manufacturing and exporting more than one product can sell any of these products into DTA, upto 75% of FOB value of export of the specific products, subject to the condition that total DTA sale does not exceed the overall entitlement of 50% of FOB value of exports for the unit, as stipulated above. No DTA sale at concessional duty shall be permissible in respect of motor cars, alcoholic liquors, books, tea (except instant tea), pepper & pepper products, marble and such other items as may be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... norms are fixed by Norms Committee. Sale of scrap / waste / remnants by units not entitled to DTA sale, or sales beyond DTA sale entitlement, shall be on payment of full duties. Scrap / waste / remnants may also be exported. (f) There shall be no duties / taxes on scrap / waste / remnants, in case same are destroyed with permission of Customs authorities. (g) By-products included in LoP may also be sold in DTA subject to achievement of positive NFE, on payment of applicable duties, within the overall entitlement of paragraph 6.8(a). Sale of by-products by units not entitled to DTA sales, or beyond entitlements of paragraph 6.8 (a), shall also be permissible on payment of full duties. (h) EOU / EHTP / STP / BTP units may sell finished products, except pepper and pepper products and marble, which are freely importable under FTP in DTA, under intimation to DC, against payment of full duties, provided they have achieved positive NFE. An amount equal to Anti Dumping duty under section 9A of the Customs Tariff Act, 1975 leviable at the time of import, shall be payable on the goods used for the purpose of manufacture or processing of the goods cleared into DTA from the unit. (i) In c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refinery to Public Sector domestic oil companies for being supplied to household domestic consumers at subsidized prices under the Public Distribution System (PDS) Kerosene and Domestic LPG Subsidy Scheme, 2002, as notified by the Ministry of Petroleum and Natural Gas vide notification No. E-20029/ 18/2001-PP dated 28.01.2003 (hereinafter referred to as PDS Scheme) subject to the following conditions: (a) Only supply of such quantity of LPG would be eligible for which Ministry of Petroleum and Natural Gas declines permission for export and requires the LPG to be cleared in DTA; and (b) The Ministry of Finance by a notification has permitted duty free imports of LPG for supply under the aforesaid PDS Scheme. Export through others 6.10 An EOU / EHTP / STP / BTP unit may export goods manufactured/software developed by it through another exporter or any other EOU / EHTP / STP / SEZ unit, subject to conditions mentioned in para 6.19 of HBP v1. Entitlement for supplies from the DTA 6.11 (a) Supplies from DTA to EOU/ EHTP/STP/ BTP units will be regarded as "deemed exports" and DTA supplier shall be eligible for relevant entitlements under chapter 8 of FTP besides discharge of expor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the penal provision of Customs Act, the Central Excise Act, the Foreign Trade (Development & Regulation) Act, the Foreign Exchange Management Act, the Finance Act, 1994 covering Service Tax or any allied Acts or the rules made thereunder, on account of fraud / collusion / willful mis-statement / suppression of facts or contravention of any of the provisions thereof; (g) 100% FDI investment permitted through Automatic Route similar to SEZ units. (h) 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. Inter Unit Transfer 6.13 (a) Transfer of manufactured goods from one EOU/EHTP/STP/ BTP unit to another EOU / EHTP / STP / BTP unit is allowed with prior intimation to concerned Development Commissioner and Customs authorities, following procedure of in bond movement of goods. Transfer of manufactured goods shall also be allowed from EOU / EHTP / STP / BTP unit to a SEZ Developer or Unit following procedure prescribed in SEZ Rules, 2006. (b) Capital goods may be transferred or given on loan to other EOU/ EHTP/STP/BTP/SEZ units, with prior intimation to concerned Development Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r procured from DTA, it may be (i) transferred to another EOU/SEZ/ EHTP/STP/BTP unit; or (ii) disposed off in DTA with approval of Customs authorities on payment of applicable duties and submission of import authorization; or (iii) exported. Such transfer from EOU/EHTP/STP/BTP unit to another such unit would be treated as import for receiving unit. (b) Capital goods and spares that have become obsolete/ surplus, may either be exported, transferred to another EOU/ EHTP/STP/BTP/SEZ or disposed of in DTA on payment of applicable duties. Benefit of depreciation, as applicable, will be available in case of disposal in DTA only when the unit has achieved positive NFE taking into consideration the depreciation allowed. No duty shall be payable in case capital goods, raw material , consumables, spares , goods manufactured, processed or packaged, and scrap / waste / remnants / rejects are destroyed within unit after intimation to Customs authorities, or destroyed outside unit with permission of Customs authorities. Destruction as stated above shall not apply to gold, silver, platinum, diamond, precious and semi precious stones. (c) In case of textile sector, disposal of left over mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... An EOU/EHTP/STP/BTP unit may also be permitted by Development Commissioner, to exit from the scheme at any time on payment of duty on capital goods under the prevailing EPCG Scheme for DTA Units. This will be subject to fulfillment of positive NFE criteria under EOU scheme, eligibility criteria under EPCG Scheme and standard conditions indicated in HBPv1. (e) Unit proposing to exit out of EOU scheme shall intimate DC and Customs and Central Excise authorities in writing. Unit shall assess duty liability arising out of debonding and submit details of such assessment to Customs and Central Excise authorities. Customs and Central Excise authorities shall confirm duty liabilities on priority basis, subject to the condition that the unit has achieved positive NFE, taking into consideration the depreciation allowed. After payment of duty and clearance of all dues, unit shall obtain "No Dues Certificate" from Customs and Central Excise authorities. On the basis of "No Dues Certificate" so issued by the Customs and Central Excise authorities, unit shall apply to DC for final debonding. In case there is no proceeding pending under FT(D&R) Act, DC shall issue final debonding order within a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up showrooms / retail outlets at International Airports. Personal Carriage of Import/Export Parcels Including through Foreign bound Passengers 6.22 Import / export through personal carriage of gem and jewellery items may be undertaken as per Customs procedure. Export proceeds shall, however, be realized through normal banking channel. Import/export through personal carriage by units, other than gem and jewellery units, shall be allowed provided goods are not in commercial quantity. 2[An authorized person of Gems & Jewellery EOU may also import Gold in primary form, upto 10Kgs. in a financial year through Personal carriage, as per guidelines prescribed by RBI and Department of Revenue.] Export/Import by Post/Courier 6.23 Goods including free samples, may be exported / imported by airfreight or through Foreign Post Office or through courier, as per Customs procedure. Administration of EOUs / Powers of Development Commissioner 6.24 Details of administration of EOUs and powers of Development Commissioner are given in HBP v1. Revival of Sick Units. 6.25 Subject to a unit being declared sick by appropriate authority, proposals for revival of the unit or its take over may be con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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