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TMI BlogExport Oriented Units (EOUs)X X X X Extracts X X X X X X X X Extracts X X X X ..... lication for setting up EHTP / STP unit shall be in format prescribed by MeitY and shall be submitted to officer designated by MeitY. (iii) A 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. (c) On approval, a Letter of Permission (LoP) / Letter of Intent (LoI) shall be issued by DC / designated officer to EOU/ EHTP /STP / BTP unit. LoP / LoI shall have an initial validity of 2 years to enable the Unit to construct the plant & install the machinery and by this time the unit should have commenced production. In case the unit is not able to commence production in the initial validity period of 2 years, an extension of one year may be given by the DC for valid reasons to be recorded in writing. Subsequent extension of one year may be given by the Unit Approval Committee subject to condition that two thirds of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nated Officer will grant extension after obtaining approval of BOA/IMSC. 6.02 Legal Undertaking (LUT) (a) Approved EOU / EHTP / STP / BTP unit shall execute an LUT with DC / Designated Officer concerned as in Appendix 6E of Appendices & ANFs. (b) All EOU / EHTP / STP / BTP units should have permanent e-mail address. No LUT for new units shall be executed unless unit has its permanent e-mail address and digital signature on said e-mail ID. In event of an EOU not having permanent e-mail address and digital signature, further imports and DTA sale shall not be permitted by DC. 6.03 Export of Goods and Services (a) Software units may undertake exports using data communication links or in form of physical exports (which may be through courier service also), including export of professional services. (b) EOUs shall be permitted to export jewellery on basis of a notional rate certificate issued by nominated agency. This rate will be based on prevailing Gold / US$ rate and US$ / INR rate in notional rate certificate. Certificate issued by nominated 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jewellery EOUs may import plain / studded gold / platinum or silver jewellery for export after repairs / remaking. 6.06 Conditions of Import Import of goods by EOU / EHTP / STP / BTP units shall be subject to following conditions: (a) Goods shall be imported into EOU / EHTP / STP / BTP premises. However, agriculture and allied sectors and granite sector units in EOU may supply / transfer capital goods and inputs in farm / fields / quarries with prior intimation to jurisdictional Customs authorities, provided ownership of goods rests with EOUs. Granite sector would also be allowed to take spares upto 5% of value of Capital Goods to quarry site. (b) Procedure as prescribed under Customs/Central Excise rules for EOUs and units in EHTP / STP / BTP will be followed and appropriate bond executed with Customs/Central Excise Authorities. (c) (i) The period of utilisation of goods, including capital goods, shall be co-terminus with the validity of LoP. (ii) 1[However, imported tea shall be utilized within a period of 6 months from the date of import. Similarly, export obligation against the import of items {covered by Chapter 9 of ITC(HS)} and coconut oil shall be fulfilled withi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty and/or tax free in their registered / administrative office subject to DoR guidelines. (d) For IT and IT enabled services, persons authorized by software units may access facility installed in EOU / EHTP / STP / BTP unit through communication links. 6.08 Facility of working from a place outside the unit Person(s) / employee(s) authorized by a unit of (i) IT related EOU or (ii) STP or (iii) EHTP or (iv) BTP may work from a place outside the said unit, subject to the following conditions: (i) There must be an Authorisation from the unit specifying the duration of such authorisation. (ii) The Unit shall be responsible for carrying out the work and supervision and shall be liable for any misuse. (iii) Export of the resultant products / services would take place only from the premises of the unit. 6.09 Leasing of Capital Goods Value of imported capital goods financed through leasing companies or obtained free of cost and / or on loan / lease basis, shall also be taken into account for purpose of calculation of NFE as defined in FTP. 6.10 Net Foreign Exchange (NFE) Earnings (a) EOU / EHTP / STP / BTP unit shall be a positive net foreign exchange earner. NFE earnings shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nated officer in STP. Use of SERF would be limited to capturing information on services exports from STPs. b) Unit shall be able to account for entire quantity of each category of homogenous goods imported / procured duty and/or tax free, by way of exports, sales / supplies in DTA or transfer to other SEZ / EOU / EHTP / STP / BTP units and balance in stock. However, at no point of time, units shall be required to correlate every import consignment with its exports, transfer to other SEZ / EOU / EHTP /STP / BTP units, sales in DTA and balance in stock. Any matter for clarification as to whether goods are homogenous or not shall be decided by Units Approval Committee. 6.12 Monitoring of NFE Performance of EOUs shall be monitored by Units Approval Committee as per guidelines given in Appendix 6F of Appendices & ANFs. Performance of EHTP / STP / BTP shall be monitored by MeitY / DoBT jointly with jurisdictional Customs authority. 6.13 Conversion of Scrap / Dust / sweeping of Gold / Silver /Platinum into Standard Bars Scrap / dust / sweeping of gold / silver / platinum may be sent to Government of India Mint / private mint from EOU / EHTP / STP units and returned to them in standar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontinue to be discharged by EOU / EHTP / STP / BTP unit concerned. c) Export orders so procured shall be executed within parameters of EOU / EHTP / STP / BTP schemes and goods shall be directly transferred from unit to port of shipment. d) Fulfilment of NFE by EOU / EHTP / STP / BTP units in regard to such exports shall be reckoned on basis of price at which goods are supplied by EOUs to other exporter or other EOU / EHTP / STP / BTP / SEZ unit. e) All export entitlements, including recognition as Status Holder would accrue to exporter in whose name foreign exchange earnings are realized. However, such export shall be counted towards fulfilment of obligation under this scheme only. 6.20 Other Entitlements a) FOB value of export of an EOU / EHTP / STP / BTP unit can be clubbed with FOB value of exports of its parent company in DTA or vice versa for the purpose of according Status Holder Certificate. b) Sectoral norms as notified by Government shall apply to FDI in service activities. c) STP Units / EHTP Units / Software EOUs may also use all duty and/or tax free equipment / goods for training purpose (including commercial training), subject to condition that no duty free e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as provided in FTP. d) EOUs may be permitted to remove moulds, jigs, tools, fixtures, tackles, instruments, hangers and patterns and drawings to premises of sub-contractors, subject to condition that these shall be brought back to premises of units on completion of job work within a stipulated period. Raw materials may or may not be sent along with these goods. e) In case of sub-contracting of production process abroad, goods may be exported from sub-contractor premises subject to conditions that at the time of clearance of goods, the EOU / EHTP/ BTP / STP unit shall declare (i) the transaction value of the finished goods to be cleared from the sub- contractor's premises abroad; (ii) job work charges to be paid to the sub-contractor abroad; and (iii) value of intermediate goods; supported with documents like sale price contract / or invoice for the finished goods, job work contract and the basis of arriving at the value of intermediate goods. The EOU / EHTP / BTP / STP unit shall also ensure full repatriation of foreign exchange declared as the transaction value of the finished goods cleared from the subcontractor's premises abroad. 6.22 Contract Farming EOUs engaged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Unit shall declare personal carriage of such samples to Customs while leaving country and obtain necessary endorsement. 6.25 Export through Show-rooms abroad / Duty free shops Export of goods is also permitted for display / sale in permitted shops set up abroad or in showrooms of their distributors / agents. Items not sold abroad within 180 days shall be re- imported within 45 days. 6.26 Sale through Showrooms / Retail outlets at International Airports EOUs may set up showrooms / retail outlets at International Airports for sale of goods in accordance with procedure laid down by Customs authorities. Items remaining unsold after a period of 60 days shall be exported or returned to respective EOUs. 6.27 Personal Carriage of Import / Export Parcels including through Foreign Bound Passengers a) For Personal carriage of jewellery by foreign bound passenger, following documents shall be submitted by EOUs as proof of exports: (i) Copy of shipping bill filed by EOUs; (ii) A copy of Currency Declaration Form filed by Foreign buyer with Customs at time of his arrival; and (iii) Foreign Exchange Realisation / Encashment Certificate from Bank. b) In addition to this, Personal Ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted period. c) An EOU may export free samples, without any limit, including samples made in wax moulds, silver mould and rubber moulds through all permissible mode of export including through courier agencies / post. For statutory requirement of Stability & Retention sample with manufacturer, an EOU / EHTP / BTP / STP unit may re-import with or without payment of duties/taxes as provided at para 6.01(d)(ii) of FTP those samples, which were exported by it, under intimation to Custom Authorities, and FOB value of such samples shall not be counted for NFE purpose and other export benefits, if any. d) An EOU, on basis of records maintained by them and on prior intimation to Customs authorities, may send samples to other EOUs for display on returnable basis within a period of 30 days. 6.30 Donation of Computer and Computer Peripherals EOU / EHTP / STP / BTP unit may be allowed by Customs authorities concerned to donate imported / indigenously procured (bought or taken on loan) computer and computer peripherals, including printer, plotter, scanner, monitor, keyboard and storage units without payment of duty other than applicable taxes under GST Law, two years after their import / pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ishment and operation of EOUs 6.33 Approval of EHTP / STP / BTP Units In case of units under EHTP / STP scheme, necessary approval / permission shall be granted by officer designated by MeitY / Director (STPI). Designated officer shall also exercise powers of adjudication under Section 13 read with Section 11 of FT(D&R) Act, 1992, as amended, in respect of STP / EHTP as mentioned in Gazette Notification No. S.O. 106 (E) dated 30-1-2006. Similarly in case of units under BTP, necessary approval / permission shall be granted by officer designated by DoBT. However, designated officers shall adopt criteria for automatic approval of new units as laid down in Appendix 6A of Appendices & ANFs. 6.34 Powers of DC / Designated Officer DC / Designated Officer shall have following powers in respect to units. Jurisdiction of DC is given in Appendix 6J of Appendices & ANFs. a) Conversion of sick / closed DTA unit into EOU; b) Conversion of EOU to STP / EHTP / BTP and vice-versa as per prescribed procedure; c) To allow increase in value of capital goods in terms of Indian Rupees, on account of foreign exchange rate fluctuations; d) To permit capacity enhancement without any limit in ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BOA Approval BOA may consider change of location of EOU / EHTP / STP / BTP unit from place mentioned in LoP to another and / or to include additional location outside territorial jurisdiction of original DC / Designated Officer, subject to such conditions as BOA may decide. 6.36 Clearance of Capital Goods in DTA Clearance of capital goods, including second hand, in DTA shall be allowed as per para 6.14(b) of FTP and import policy in force on date of such clearance. 6.37 Depreciation Norms Depreciation up to 100% is permissible for Computers and Computer peripherals in 5 years and 10 years in case of other items. (a) Depreciation Norms for Computers and Computer Peripherals: Depreciation for computers and computer peripherals shall be as follows. 10% for every quarter in first year; 8% for every quarter in second year; 5% for every quarter in third year; 1% for every quarter in fourth and fifth year. (b) Depreciation Norms for Other Capital Goods: For capital goods, other than above, depreciation rate would be as follows: 4% for every quarter in first year; 3% for every quarter in second and third year; 2.5% for every quarter in fourth and fifth year; 2% for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jurisdictional Asst. / Deputy Commissioner of Customs or Central Excise. f) Personal carriage of samples: Personal carriage of samples of Gems & Jewellery by status holder EOUs are allowed subject to limit fixed in Paragraph 6.24 without a need for prior permission from DC / Customs. g) Activities which do not require permission: In respect of following activities of a status holder, permission will not be required from DC or jurisdictional Central Excise/Customs authority: DTA sale of finished products in terms of Paragraph 6.07(a) of FTP; Participation in exhibition and Personal carriage of Gems & Jewellery for export promotion tours subject to fulfilment of conditions of Paragraph 6.23 of HBP. However, prior intimation thereof needs to be given. 6.40 Time Bound Disposal of Applications DC shall dispose of applications expeditiously. Following time schedule shall normally be followed to dispose of applications provided application is complete in all respects and is accompanied with prescribed documents. S.No. Category of Application 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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