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TMI BlogEXPORT ORIENTED UNITS (EOUs), ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs), SOFTWARE TECHNOLOGY PARKS (STPs) SCHEME AND BIO-TECHNOLOGY PARKS (BTPs).X X X X Extracts X X X X X X X X Extracts X X X X ..... arance of proposal by BOA (as per Appendix 6 C of Appendices ANFs) and Department of Industrial Policy and Promotion within 45 days on merits. (d) STP / EHTP complexes can be set up by Central Government, State Government, Public or Private Sector Undertakings or any combination thereof, duly approved by Inter-Ministerial Standing Committee (IMSC) in Ministry of Communication and Information Technology (Department of Electronics Information Technology - DeitY). Application for setting up EHTP / STP unit shall be in format prescribed by DeitY and shall be submitted to officer designated by DeitY. (e) BTP can be set up by Central Government, State Government, Public or Private Sector Undertakings or any combination thereof. Application for setting up of BTP shall be submitted to Department of Bio-Technology (DoBT) and such applications which meet guidelines prescribed by DoBT will be approved and recommended to DGFT for notification. Application for setting up of BTP unit shall be submitted to officer designated by DoBT. (f) LoP / LoI shall specify item(s) of manufacture / service activity, annual capacity, projected annual export for first five years in dollar terms, Ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agency should not be older than 7 working days of date of shipment. (c) Exporter shall have flexibility to fix price and repay gold loan within 180 days from date of export. Price shall be communicated to nominated agencies who will issue a certificate showing final confirmation of rate to bank negotiating document, to ensure export proceeds are realized at this rate. (d) Gems Jewellery EOUs may re-export imported goods and export domestically procured goods, including goods generated out of partial processing / manufacture. Besides, supply of unsuitable / broken cut and polished diamonds, precious and semi-precious stones upto 5% of value of imported or indigenously procured goods to DTA against valid Gems Jewellery REP as applicable on payment of appropriate duty is also permitted. 6.04 Import / Domestic Procurement of Goods Goods permitted to be imported / procured from DTA shall include: (a) Raw materials, components, consumables, intermediates, spares and packing materials . (b) Capital goods, whether new or second-hand, including inter-alia following and their spares: (1) DG sets, captive power plants, transformers and accessories for all above. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Further, in case of import of spices for VA purpose like crushing / grinding / sterilization or for manufacture of oils and oleoresins of pepper, cardamom and chillies (and not for simple cleaning, grading, re-packing etc.), EO shall be fulfilled within 120 days from the date of importation of first consignment. In case of import of spices (other than pepper, cardamom and chillies) for manufacture of spice oils and oleoresins, EO shall be fulfilled within 12 months. (d) Goods already imported / shipped / arrived before issue of LoP / LoI are also eligible for duty free clearance under EOU / EHTP / STP / BTP scheme, provided customs duty has not been paid and goods have not been cleared from Customs. (e) Consumption of inputs by the EOU / EHTP / STP / BTP unit shall be based on the Standard Input Output Norms (SION) provided that: (i) where no SION have been notified, generation of waste, scrap and remnants upto 2% of input quantity shall be allowed; (ii) where additional items other than those given in SION are required as inputs or where generation of waste, scrap and remnants is beyond 2% of input quantity, use of such inputs shall be allowed by the jurisdictional DC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lculation of NFE. Positive NFE = A - B 0 Where NFE is Net Foreign Exchange; A is FOB value of exports by EOU / EHTP / STP / BTP unit; B is sum total of CIF value of all imported inputs and CIF value of all imported capital goods, and value of all payments made in foreign exchange by way of commission, royalty, fees, dividends, interest on external borrowings / high sea sales during first five year period or any other charges. It will also include payment made in Indian Rupees on high sea sales. Inputs mean raw materials, intermediates, components, consumables, parts and packing materials. (b) If any goods are obtained from another EOU / EHTP / STP / BTP / SEZ unit, or procured from an international exhibition held in India, or bonded warehouses or precious metals procured from nominated agencies, value of such goods shall be included under B . (c) If any capital goods are imported duty free or leased from a leasing company, received free of cost and / or on loan basis or transfer, CIF value of capital goods shall be included pro-rata, under B for period it remains with units. (d) For annual calculation of NFE, value of imported capital goods a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny time from any commitment or compliance with any requirements to which importer may be subject to under other laws or regulations. 6.15 Supplies to other EOU / EHTP / STP / SEZ / BTP Units Supplies to other EOU / EHTP / STP / BTP / SEZ units shall be counted towards NFE provided that such goods are permissible for procurement by these units. 6.16 Transfer of Power from one Unit to another Transfer of power from Captive Power plants (DG Sets) from one unit of EOU / EHTP / STP / BTP unit to another is permitted as prescribed in sector specific condition in Appendix 6 B of Appendices ANFs. 6.17 Supply of Precious / Semiprecious / Synthetic Stones from DTA Supplier of precious and semi-precious stones, synthetic stones and processed pearls from DTA to EOUs shall be eligible for grant of Replenishment Authorisation at rates and for items mentioned in HBP. Procedure for submission of application for grant of Replenishment Authorisation as contained in relevant Chapter of HBP Vol. I shall be applicable. However, application shall be made to DC concerned. Such supplies to EOUs are not treated as deemed exports for purpose of any of deemed export Benefits 6.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d others with WP (Civil) No 171 of 1996 in regard to use of timber / other wood. 6.21 Sub - Contracting (a) Sub - contracting by EOU gems and jewellery units through other EOUs, or SEZ Units, or units in DTA shall be subject to following conditions:- (i) Goods, finished or semi finished, including studded jewellery, taken out for sub - contracting shall be brought back to unit within 90 days. (ii) No cut and polished diamonds, precious and semiprecious stones (except precious, semi- precious and synthetic stones having zero duty) shall be allowed to be taken out for sub - contracting. (iii) Receive plain gold / silver / platinum jewellery from DTA / EOU / SEZ units in exchange of equivalent quantity of gold / silver / platinum, as the case may be, contained in said jewellery. (iv) EOUs shall be eligible for wastage as applicable as per Paragraph 4 A.2 of HBP for sub - contracting and against exchange. (v) DTA unit undertaking job work or supplying jewellery against exchange of gold / silver / platinum shall not be entitled to deemed export benefits. (b) Facility of getting job work done from DTA unit will be available even when job worker is not registered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank guarantee equivalent to duty foregone on capital goods / inputs proposed to be taken out, to Deputy / Assistant Commissioner of Customs / Central Excise, till unit completes two years. 6.23 Export through Exhibitions / Export Promotion Tour EOU / EHTP / STP / BTP units may export goods for holding / participating in exhibitions abroad, with permission of DC, subject to following conditions: (a) Unit shall produce to Customs authorities letter in original, or its certified copy containing approval of DC. For gems and jewellery items, a self certified photograph of products shall also be submitted. (b) In case of re - import, such items, on arrival shall be verified along with export documents before clearance (c) Items not sold abroad shall be re - imported within 60 days of close of exhibition. However, in case exporter is participating in more than one exhibition within 45 days of close of first exhibition, then 60 days shall be counted from date of close of last exhibition. In case of exhibition in USA, the time period shall be 90 days instead of 60 days mentioned above. (d) In case of personal carriage of goods and for holding / participating in overseas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dis. (d) Personal carriage of parts by foreign bound passengers shall be allowed in case same are required for repairs of exported goods at customer site. Following documents should be submitted as proof of exports: (i) Permission letter from Customs for exports. (ii) Invoice with value (for payment or free of charge). 6.28 Replacement / Repair of Imported / Indigenous Goods (a) Units may send capital goods abroad for repair with permission of Customs authorities. Any foreign exchange payment for this purpose will also be allowed. However, no permission will be required for sending capital goods for repair within country. (b) EOU / EHTP / STP / BTP units may, on basis of records maintained by them and prior intimation to Customs authorities: (i) Transfer goods to DTA / abroad for repair / replacement, testing or calibration and return. (ii) Transfer goods for quality testing / R D purpose to any recognised laboratory / institution upto ₹ 5 lakh per annum without payment of duty, on giving suitable undertaking to Customs for return of goods. However, if goods have been consumed / destroyed in process of testing etc. a certificate from laboratory / ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istinct identities with separate accounts, including separate bank accounts. It is, however, not necessary for it to be a separate legal entity, but it should be possible to distinguish imports and exports or supplies effected by EOU / EHTP / STP / BTP units from those made by other units of enterprise. 6.32 Unit Approval Committee for EOUs (a) Composition of Unit Approval Committee shall be as under: Development Commissioner : Chairperson Jurisdictional Commissioner of Central Excise Customs or nominee : Member Joint DGFT or nominee : Member Joint / Deputy Development : Commissioner of the Zone Member Any other nominee of any Department / Agency as special invitee (b) Powers and functions of Unit Approval Committee of EOUs shall be as under: (i) To consider applications for setting up EOUs. Items of manufacture requiring industrial licence under Industrial (Development Regulation) Act, 1951 shall be considered by BOA. (ii) to consider and permit conversion of units in SEZ to EOU; (iii) to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within territorial jurisdiction of DC / Designated Officer; (8) Extend validity period of LoP beyond initial validity period of LoP (except in case where there is a restriction on initial period of approval, like setting up of oil refinery projects) as per Paragraph 6.05 (a) of FTP; (9) Cancel LoP wherever warranted; (10) Permit merger of two or more units into one unit provided units fall within jurisdiction of same DC / Designated Officer subject to condition that activities are covered under provision of broad banding; (11) Exercise powers of adjudication under Section 13 read with Section 11 of FT (D R) Act, in respect of EOUs as mentioned in Gazette Notification No. SO. 194(E) dated 6.3.2000; (12) Do valuation of exports declared on SOFTEX form by EOUs as per RBI A.D. (M.A Series) Circular AP (DIR series Circular No.9 dated 25.10.2001); (13) Issue eligibility certificates for grant of employment visa to low level foreign technicians to be engaged by EOUs as per Ministry of Home Affairs letter No. 25022 / 7 / 99- F.1 dated 20.9.1999; (14) Registration - cum - Membership Certificate Function as a Registering authority for EOU / EHTP / STP / BTP unit. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to new units. In case there is an outstanding export commitment under EPCG scheme / Advance Authorization Scheme, it will follow the procedure laid down in Appendix 6 M of Appendices ANFs. (b) Existing EHTP / STP / BTP units may also apply for conversion / merger to EOU unit and vice-versa. In such cases, units will continue to avail permissible exemption in duties and taxes as applicable under relevant scheme. EHTP / STP / BTP units desiring conversion as an EOU may apply to DC concerned through Officer designated by DeitY / DoBT in same manner as applicable to new units. Likewise, EOU desiring conversion into EHTP / STP / BTP may apply to officer designated by DeitY / DoBT through DC concerned. (c) An EOU may be shifted to SEZ with approval of DC provided EOU has achieved pro-rata obligation under EOU scheme. 6.39 Revival of Sick Units Subject to a unit being declared sick by appropriate authority, proposals for revival of unit or its take over may be considered by BOA. Guidelines on revival of sick units are given in Appendix 6 L of Appendices ANFs. 6.40 Fast Track Clearance Procedure (a) Eligibility: EOUs having a status holder certificate under F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation Time limit for disposal (days) 1 Issue of LoP / LoI 15 2 Conversion of LoP / LoI 15 3 Acceptance of LUT 3 4 Renewal of LUT 3 5 Permission for broad banding /diversification 3 6 Permission for change in locations 7 7 Permission for Advance DTA sale 2 8 Permission for merger of units 7 9 Permission for enhancement of production capacity 3 10 Cancellation of LoP 3 11 Permission for debonding / exit 7 12 Permission for DTA sale 2 13 Eligibility certificate for employment visa for lower level techni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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