About 100% Export oriented unit scheme:

Introduced in the year 1981 by Govt. of India, the EOU Scheme's main thrust is to boost and attract sector specific exports from all parts of India having huge potential near to raw material source. The Scheme has undergone several changes over a period and the present policy parameter is most liberalized and conducive to the entrepreneur for setting up its Export Oriented Unit. The Scheme covers manufacturing/processing and services.

Objectives of the 100% Export oriented unit:

The main objectives of the scheme is to increase exports, earn foreign exchange to the country, transfer of latest technologies stimulate direct foreign investment and to generate additional employment.

Facilities in the Scheme:

• Can be setup anywhere in AP, Yanam & Chattisgarh



• Minimum investment should be Rs.1 Crore in plant & machinery (except for Agriculture/Floriculture/Aquaculture/IT/Service units, Brass hand made jewelery)



• Existing units in DTA can also convert into EOU Scheme.



• EOU can be setup on leased premises also with minimum lease period of 5 years



• EOUs are allowed to have additional locations for their operational convenience within the jurisdiction of Development Commissioner, VSEZ i.e., Andhra Pradesh, Yanam & Chattisgarh

Attractive Policy Provisions for EOUs :

• EOU can also import second hand capital goods without any age limit



• EOUs are allowed to utilize plant and machinery for job work DTA units provided the goods are exported directly from the EOU premises



• EOUs in Agriculture and allied sectors and in granite sector may transfer the capital goods and the inputs to the Farms/field/quarries for usage relating to the production in the EOU



• In case of new EOUs, Advance DTA sale will be allowed as per existing policy on estimated exports for the first year except the pharmaceutical units where this will be based on its estimated exports for the first two years



• Advance DTA sale permission is given on quarterly basis for perishable goods like mushrooms, cut flowers etc.



• Exports through third party is permitted



• Exports from the job workers premises is allowed



• 100% FDI investment permitted through Automatic Route similar to SEZ units



• EOUs have to achieve only positive Net Foreign Exchange (NFE) within 5 years i.e., A - B > 0 where (A) is the FOB value of Exports and (B) is CIF value of imports

Fiscal Incentives available to 100% EOUs:

• Exemption from Import Duties.



• Reiumbursement of Central Sales Tax (CST) on purchases made from Domestic Tariff Area (DTA) on Goods where CST is leviable



• Refund of TED on HSD fuels procured from domestic public oil companies

Special Package of Incentives for Star Export House EOUs (Fast Track Clearance):

• Permissions and Customs clearances for both Imports and Exports on self declaration basis



• Fixation of Input-Output norms on priority within 60 days



• Exemption from compulsory negotiation of documents through Banks



• 100% retention of foreign exchange in EEFC account



• Enhancement of normal repatriation period from 180 days to 360 days



• Exemption from furnishing of Bank Guarantee in Schemes under this policy



• Exemption from examination of Import Cargo



• DTA clearance of rejects on priority basis



• Personal carriage of samples of Gems & Jewellery without a need for prior permission



• DTA sale of finished products on achieving NFE positive



• Participation in exhibition for export promotion on prior intimation only

Major Sectors in EOUs:

• GRANITE



• TEXTILES / GARMENTS



• FOOD PROCESSING



• CHEMICALS



• COMPUTER SOFTWARE



• COFFEE



• PHARMACEUTICALS



• GEM & JEWELLERY



• ENGINEERING GOODS



• ELECTRICAL & ELECTRONICS



• AQUA & PEARL CULTURE

How to Apply:

Apply in prescribed proforma ANF 6A :The application should be submitted to the Development Commissioner of the concerned Special Economic Zone (for setting up EOUs in 3 copies along with a crossed Demand Draft of Rs. 5,000/- drawn in favour of the Pay & Accounts Officer, Ministry of Commerce & Industry, Department of Commerce, payable at the Central Bank of India, Udyog Bhavan, New Delhi. (NO FEE SHALL BE CHARGED FOR RENEWAL/ EXTENSION OF LOP/ BROAD BANDING ETC.)

• Project Report



• Income Tax Returns of the promoters



• Identity proof of the promoters &



• Registration certificate details

Who Can Apply for 100% EOU Scheme:

Units undertaking to Export their production of goods and services, except permissible level of sales in the Domestic Tariff Area (DTA) as per Foreign Trade Policy, may be set up under the EOU scheme for manufacture of goods, including repair, re-making, re-conditioning, re-engineering and rendering of services. Trading units however are not covered under these schemes.

For Government of India Policy on EOU scheme from time to time, please visit https://www.dgft.gov.in/