Download - EOU Scheme Slideshow
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 118
1
EOU Scheme-Overview
bull Units undertaking to export their entire production of goodsand services may be set up under the Export Oriented Unit(EOU) Scheme
bull EOUs can get a location of their choice Customs-bondedanywhere in India
ndash For setting up an EOU in Karnataka Kerala Lakshadweep or Maheapply to Development Commissioner Cochin SEZ
bull EOUs can import without duties all capital goods and rawmaterials for running the unit
ndash EOUs can procure these items from Indian sources also without exciseduties and sales taxes
bull EOUs can sell upto 50 of FOB value of exports in theIndian market at concessional duties
bull New EOUs get Corporate Income Tax concessions till 2009
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 218
2
Approvals for EOUs
bull EOUs are given approval for manufacture of goods
including re-furbishing as well as for rendering of services including bio-technology BPO CallCentres IT enabled Services An EOU may alsoengage in mining agriculture aquaculture
floriculture or horticulturebull Trading by EOUs is not permitted
ndash Minimum Investment for approval as an EOUshould be Rs10 million in plant ampmachinery
bull Software services handicrafts agriculture floriculture aqua-culture animal husbandry information technology are exempted from this sizerestriction
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 318
3
Approvals for EOUs Licences are required for
Manufacturing arms and ammunition atomic substancesnarcoticspsychotropic substances and tobacco products
Establishing EOUs in Bangalore and Cochin city limits (unless it is a non-polluting sector EOU or is located in an industrialestate within the city)
Approvals for licensable activity and services aregiven by the Board of Approvals in the CommerceMinistry Applications are to be routed through the Development
Commissioner
Approval (called Letter of Permission (LOP)) for non-licensable manufacturing activity is given locally bythe Development Commissioner
Relevant forms are available at
httpwwwcepzcomeouforms
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 418
4
EOU Scheme Features
bull EOUs may export all products except prohibited items of exports
bull EOUs may import without duty all types of goods includingcapital goods required for its activities unless they areprohibited for import
Even second hand plant amp machinery can be imported
Capital Goods can be purchased loaned sourced fromforeigndomestic leasing companies or brought free of cost
EOUs get upto 5 years for utilization of imported capital
goods and upto 3 years for other items
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 518
5
EOUs amp FDI
100 FDI in manufacturing EOUs is permitted under the
automatic route of the Reserve Bank of India
ie first bring in the money and then inform Reserve Bank of
Indiarsquos local office in Form FC(RBI) within 30 days of receipt
Also under the automatic route for EOUs are
External Commercial Borrowing upto USD 50 million with
maturities of 3 years or more for funding and running the unit
Use of brand namestrademarks if royalty is upto 2 on exports and
1 on domestic sales without technology transfer
Foreign technology tie-ups if lump sum payment does not exceedUSD 2 million and if royalty is upto 5 on domestic sales and 8 on
exports even for wholly owned subsidiaries
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 618
6
EOUs and Foreign Exchange
EOUs may freely repatriate investment amp returns
abroad
EOUs need to bring export proceeds to India only
within 360 days of export
And even then upto 100 may be retained in foreign
currency in the unitrsquos EEFC Account
EOUs may invoice sales to other EOUs etc in foreign
exchange
EOUs may invoice sales to Indian entities other than
EOUs also in foreign exchange sourced from from theirEEFC account or abroad
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 718
7
Tax Concessions for EOUs
New EOUs are entitled under to Corporate Income Taxexemption on physical exports out of India till 2009
Central Sales Tax is reimbursed on purchases from
local manufacturers
Supplies from local manufacturers are free of Central
Excise Duty
In case duties are paid Terminal Excise Duty is
reimbursedEOUs in manufacturing sector get exemption from
State Sales Tax on inputs (excepting fuel)
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 818
8
EOU Scheme amp DTA entities
bull Existing Indian entities can open a new EOU under
the same legal entity ndash But the EOU division must maintain separate accounts
including separate Bank accounts
bull DTA units can also convert to EOU scheme ndash
Units working with EPCG Advance Licencing can alsoconvert to EOU scheme
ndash Their pending licence obligations will be subsumed intothe EOU scheme
ndash But to be eligible for Corporate Income Tax concessions
under section 10B it has to be ensured that old assets donot exceed 20 of total assets of the EOU
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 918
9
EOUs amp Customs Department
bull EOUs have to get their premises bonded by the local Customs
Central Excise Department and function under their supervisionbull They can get a location of their choice so bonded
ndash All duty-free items have to be brought here first
bull One single multi-purpose bond with the Customs Central Excise
Department called the B 17 Bond suffices for all operationsbull While there is no physical control there is record-based control
ndash EOU has to maintain proper account of the import consumption andutilisation of all importedlocally procured materials and exports made andsubmit them periodically to the Customs
bullDuty foregone under the EOU scheme with interest is recoverablein case of fraudulent activity (along with prosecution amp penalties)
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1018
10
Export Obligations of EOUs
EOUs have only to be foreign exchange positiveFE Inflowsgt FE Outflows
where
bull FE Inflows = Export earnings (Direct Exports+ Exports throughThird Parties + Inter-unit Sales + Exports to
EOUSEZSTPEHTPs)
bull FE Outflows = Foreign Exchange outgo on imports of Rawmaterialsconsumables + FE payments of commission royalty fees dividends interest on ECB + share of amortised value of
capital goods imported Imported capital goods are amortized over 10 years only amortized
amount is included in NFE calculation Values are included in the calculation even if the imports are not actually
paid for
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1118
11
EOU Scheme- Duty-free Supplies from Indian
Market
Supplies from Indian manufacturers to EOUs areclassified as deemed exports and the suppliers are
eligible for
Advance Licence for import of intermediate inputs
Deemed Export Duty Drawback
Discharge of export performance obligation on the supplier
EOUs may obtain on production of a suitable
disclaimer from the suppliers the duty drawback andrefund of Terminal Excise Duty
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1218
12
EOUsrsquo Access to Indian Market
Sales to the Indian Market
EOUs can sell duty-free to other EOU SEZ STP EHTPsetc
EOUs can sell on full duties in the DTA against foreigncurrency (from EEFC account or from abroad)
This also counts for NFE
Apart from the above
EOUs can sell upto 50 of FOB value of physical exportsto the DTA at concessional duties
EOUs can sell over and above that at full duties subject toNFE being positive
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1318
13
EOU Sales to other EOUs
EOUrsquos Sales are duty-free to Indian entities like SEZ EOU EPZ STP EHTP units
Advance Licence Holders
Bonded Warehouses amp
Educational institutions defence establishments otheragencies notified by Government of India as eligible forduty-free imports
These sales count for computation of NFE But they do not count as physical exports
They can be invoiced in foreign currency or inIndian currency
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1418
14
EOUs amp Subcontracting
EOUs can subcontract up to 50 of production or part
of production process to units in the EOU or Indian
manufacturers
EOUs may temporarily take to the job workerrsquos premises
jigs moulds tools fixtures tackles instruments hangerspatterns amp drawings for job work
EOUs can even subcontract to units abroad
EOUs can import raw materials amp components free of cost
for job-working and returnEOUs can undertake job-work for export on behalf of
local manufacturers
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1518
15
EOU Scheme Exit Policy
Units can de-bond without paying duties capital goods they
have used for 10 yearsSoftware units can de-bond on duty-free basis after 3 years
Units can wind up their operations on meeting their export
obligations by
Exporting back any imported capital goods and othermaterial or transferring them to another SEZEOU unit or
Destroying the items in Customs presence or
Donation on gratis basis to educational institutions or
De-bonding on payment of duty on capital goods under the
EPCG Scheme as a one time option or
De-bonding all duty-foregone items by paying duties at current
rates on unutilised raw materials (imported value) and on capital
goods (on depreciated value only) and selling them in the DTA
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1618
16
EOU Scheme Exit Policy
In case of failure to achieve positive NFEduty foregone under the EOU scheme withinterest is recoverable in proportion to the
shortfall in NFEIf the unit has not met positive NFE de-
bonding shall also be subject to payment of penalties under the Foreign Trade(Development amp Regulation) Act 1992 andunder the Customs Act 1960
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1718
17
EOU Scheme Who can operate
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 218
2
Approvals for EOUs
bull EOUs are given approval for manufacture of goods
including re-furbishing as well as for rendering of services including bio-technology BPO CallCentres IT enabled Services An EOU may alsoengage in mining agriculture aquaculture
floriculture or horticulturebull Trading by EOUs is not permitted
ndash Minimum Investment for approval as an EOUshould be Rs10 million in plant ampmachinery
bull Software services handicrafts agriculture floriculture aqua-culture animal husbandry information technology are exempted from this sizerestriction
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 318
3
Approvals for EOUs Licences are required for
Manufacturing arms and ammunition atomic substancesnarcoticspsychotropic substances and tobacco products
Establishing EOUs in Bangalore and Cochin city limits (unless it is a non-polluting sector EOU or is located in an industrialestate within the city)
Approvals for licensable activity and services aregiven by the Board of Approvals in the CommerceMinistry Applications are to be routed through the Development
Commissioner
Approval (called Letter of Permission (LOP)) for non-licensable manufacturing activity is given locally bythe Development Commissioner
Relevant forms are available at
httpwwwcepzcomeouforms
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 418
4
EOU Scheme Features
bull EOUs may export all products except prohibited items of exports
bull EOUs may import without duty all types of goods includingcapital goods required for its activities unless they areprohibited for import
Even second hand plant amp machinery can be imported
Capital Goods can be purchased loaned sourced fromforeigndomestic leasing companies or brought free of cost
EOUs get upto 5 years for utilization of imported capital
goods and upto 3 years for other items
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 518
5
EOUs amp FDI
100 FDI in manufacturing EOUs is permitted under the
automatic route of the Reserve Bank of India
ie first bring in the money and then inform Reserve Bank of
Indiarsquos local office in Form FC(RBI) within 30 days of receipt
Also under the automatic route for EOUs are
External Commercial Borrowing upto USD 50 million with
maturities of 3 years or more for funding and running the unit
Use of brand namestrademarks if royalty is upto 2 on exports and
1 on domestic sales without technology transfer
Foreign technology tie-ups if lump sum payment does not exceedUSD 2 million and if royalty is upto 5 on domestic sales and 8 on
exports even for wholly owned subsidiaries
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 618
6
EOUs and Foreign Exchange
EOUs may freely repatriate investment amp returns
abroad
EOUs need to bring export proceeds to India only
within 360 days of export
And even then upto 100 may be retained in foreign
currency in the unitrsquos EEFC Account
EOUs may invoice sales to other EOUs etc in foreign
exchange
EOUs may invoice sales to Indian entities other than
EOUs also in foreign exchange sourced from from theirEEFC account or abroad
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 718
7
Tax Concessions for EOUs
New EOUs are entitled under to Corporate Income Taxexemption on physical exports out of India till 2009
Central Sales Tax is reimbursed on purchases from
local manufacturers
Supplies from local manufacturers are free of Central
Excise Duty
In case duties are paid Terminal Excise Duty is
reimbursedEOUs in manufacturing sector get exemption from
State Sales Tax on inputs (excepting fuel)
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 818
8
EOU Scheme amp DTA entities
bull Existing Indian entities can open a new EOU under
the same legal entity ndash But the EOU division must maintain separate accounts
including separate Bank accounts
bull DTA units can also convert to EOU scheme ndash
Units working with EPCG Advance Licencing can alsoconvert to EOU scheme
ndash Their pending licence obligations will be subsumed intothe EOU scheme
ndash But to be eligible for Corporate Income Tax concessions
under section 10B it has to be ensured that old assets donot exceed 20 of total assets of the EOU
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 918
9
EOUs amp Customs Department
bull EOUs have to get their premises bonded by the local Customs
Central Excise Department and function under their supervisionbull They can get a location of their choice so bonded
ndash All duty-free items have to be brought here first
bull One single multi-purpose bond with the Customs Central Excise
Department called the B 17 Bond suffices for all operationsbull While there is no physical control there is record-based control
ndash EOU has to maintain proper account of the import consumption andutilisation of all importedlocally procured materials and exports made andsubmit them periodically to the Customs
bullDuty foregone under the EOU scheme with interest is recoverablein case of fraudulent activity (along with prosecution amp penalties)
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1018
10
Export Obligations of EOUs
EOUs have only to be foreign exchange positiveFE Inflowsgt FE Outflows
where
bull FE Inflows = Export earnings (Direct Exports+ Exports throughThird Parties + Inter-unit Sales + Exports to
EOUSEZSTPEHTPs)
bull FE Outflows = Foreign Exchange outgo on imports of Rawmaterialsconsumables + FE payments of commission royalty fees dividends interest on ECB + share of amortised value of
capital goods imported Imported capital goods are amortized over 10 years only amortized
amount is included in NFE calculation Values are included in the calculation even if the imports are not actually
paid for
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1118
11
EOU Scheme- Duty-free Supplies from Indian
Market
Supplies from Indian manufacturers to EOUs areclassified as deemed exports and the suppliers are
eligible for
Advance Licence for import of intermediate inputs
Deemed Export Duty Drawback
Discharge of export performance obligation on the supplier
EOUs may obtain on production of a suitable
disclaimer from the suppliers the duty drawback andrefund of Terminal Excise Duty
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1218
12
EOUsrsquo Access to Indian Market
Sales to the Indian Market
EOUs can sell duty-free to other EOU SEZ STP EHTPsetc
EOUs can sell on full duties in the DTA against foreigncurrency (from EEFC account or from abroad)
This also counts for NFE
Apart from the above
EOUs can sell upto 50 of FOB value of physical exportsto the DTA at concessional duties
EOUs can sell over and above that at full duties subject toNFE being positive
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1318
13
EOU Sales to other EOUs
EOUrsquos Sales are duty-free to Indian entities like SEZ EOU EPZ STP EHTP units
Advance Licence Holders
Bonded Warehouses amp
Educational institutions defence establishments otheragencies notified by Government of India as eligible forduty-free imports
These sales count for computation of NFE But they do not count as physical exports
They can be invoiced in foreign currency or inIndian currency
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1418
14
EOUs amp Subcontracting
EOUs can subcontract up to 50 of production or part
of production process to units in the EOU or Indian
manufacturers
EOUs may temporarily take to the job workerrsquos premises
jigs moulds tools fixtures tackles instruments hangerspatterns amp drawings for job work
EOUs can even subcontract to units abroad
EOUs can import raw materials amp components free of cost
for job-working and returnEOUs can undertake job-work for export on behalf of
local manufacturers
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1518
15
EOU Scheme Exit Policy
Units can de-bond without paying duties capital goods they
have used for 10 yearsSoftware units can de-bond on duty-free basis after 3 years
Units can wind up their operations on meeting their export
obligations by
Exporting back any imported capital goods and othermaterial or transferring them to another SEZEOU unit or
Destroying the items in Customs presence or
Donation on gratis basis to educational institutions or
De-bonding on payment of duty on capital goods under the
EPCG Scheme as a one time option or
De-bonding all duty-foregone items by paying duties at current
rates on unutilised raw materials (imported value) and on capital
goods (on depreciated value only) and selling them in the DTA
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1618
16
EOU Scheme Exit Policy
In case of failure to achieve positive NFEduty foregone under the EOU scheme withinterest is recoverable in proportion to the
shortfall in NFEIf the unit has not met positive NFE de-
bonding shall also be subject to payment of penalties under the Foreign Trade(Development amp Regulation) Act 1992 andunder the Customs Act 1960
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1718
17
EOU Scheme Who can operate
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 318
3
Approvals for EOUs Licences are required for
Manufacturing arms and ammunition atomic substancesnarcoticspsychotropic substances and tobacco products
Establishing EOUs in Bangalore and Cochin city limits (unless it is a non-polluting sector EOU or is located in an industrialestate within the city)
Approvals for licensable activity and services aregiven by the Board of Approvals in the CommerceMinistry Applications are to be routed through the Development
Commissioner
Approval (called Letter of Permission (LOP)) for non-licensable manufacturing activity is given locally bythe Development Commissioner
Relevant forms are available at
httpwwwcepzcomeouforms
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 418
4
EOU Scheme Features
bull EOUs may export all products except prohibited items of exports
bull EOUs may import without duty all types of goods includingcapital goods required for its activities unless they areprohibited for import
Even second hand plant amp machinery can be imported
Capital Goods can be purchased loaned sourced fromforeigndomestic leasing companies or brought free of cost
EOUs get upto 5 years for utilization of imported capital
goods and upto 3 years for other items
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 518
5
EOUs amp FDI
100 FDI in manufacturing EOUs is permitted under the
automatic route of the Reserve Bank of India
ie first bring in the money and then inform Reserve Bank of
Indiarsquos local office in Form FC(RBI) within 30 days of receipt
Also under the automatic route for EOUs are
External Commercial Borrowing upto USD 50 million with
maturities of 3 years or more for funding and running the unit
Use of brand namestrademarks if royalty is upto 2 on exports and
1 on domestic sales without technology transfer
Foreign technology tie-ups if lump sum payment does not exceedUSD 2 million and if royalty is upto 5 on domestic sales and 8 on
exports even for wholly owned subsidiaries
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 618
6
EOUs and Foreign Exchange
EOUs may freely repatriate investment amp returns
abroad
EOUs need to bring export proceeds to India only
within 360 days of export
And even then upto 100 may be retained in foreign
currency in the unitrsquos EEFC Account
EOUs may invoice sales to other EOUs etc in foreign
exchange
EOUs may invoice sales to Indian entities other than
EOUs also in foreign exchange sourced from from theirEEFC account or abroad
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 718
7
Tax Concessions for EOUs
New EOUs are entitled under to Corporate Income Taxexemption on physical exports out of India till 2009
Central Sales Tax is reimbursed on purchases from
local manufacturers
Supplies from local manufacturers are free of Central
Excise Duty
In case duties are paid Terminal Excise Duty is
reimbursedEOUs in manufacturing sector get exemption from
State Sales Tax on inputs (excepting fuel)
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 818
8
EOU Scheme amp DTA entities
bull Existing Indian entities can open a new EOU under
the same legal entity ndash But the EOU division must maintain separate accounts
including separate Bank accounts
bull DTA units can also convert to EOU scheme ndash
Units working with EPCG Advance Licencing can alsoconvert to EOU scheme
ndash Their pending licence obligations will be subsumed intothe EOU scheme
ndash But to be eligible for Corporate Income Tax concessions
under section 10B it has to be ensured that old assets donot exceed 20 of total assets of the EOU
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 918
9
EOUs amp Customs Department
bull EOUs have to get their premises bonded by the local Customs
Central Excise Department and function under their supervisionbull They can get a location of their choice so bonded
ndash All duty-free items have to be brought here first
bull One single multi-purpose bond with the Customs Central Excise
Department called the B 17 Bond suffices for all operationsbull While there is no physical control there is record-based control
ndash EOU has to maintain proper account of the import consumption andutilisation of all importedlocally procured materials and exports made andsubmit them periodically to the Customs
bullDuty foregone under the EOU scheme with interest is recoverablein case of fraudulent activity (along with prosecution amp penalties)
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1018
10
Export Obligations of EOUs
EOUs have only to be foreign exchange positiveFE Inflowsgt FE Outflows
where
bull FE Inflows = Export earnings (Direct Exports+ Exports throughThird Parties + Inter-unit Sales + Exports to
EOUSEZSTPEHTPs)
bull FE Outflows = Foreign Exchange outgo on imports of Rawmaterialsconsumables + FE payments of commission royalty fees dividends interest on ECB + share of amortised value of
capital goods imported Imported capital goods are amortized over 10 years only amortized
amount is included in NFE calculation Values are included in the calculation even if the imports are not actually
paid for
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1118
11
EOU Scheme- Duty-free Supplies from Indian
Market
Supplies from Indian manufacturers to EOUs areclassified as deemed exports and the suppliers are
eligible for
Advance Licence for import of intermediate inputs
Deemed Export Duty Drawback
Discharge of export performance obligation on the supplier
EOUs may obtain on production of a suitable
disclaimer from the suppliers the duty drawback andrefund of Terminal Excise Duty
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1218
12
EOUsrsquo Access to Indian Market
Sales to the Indian Market
EOUs can sell duty-free to other EOU SEZ STP EHTPsetc
EOUs can sell on full duties in the DTA against foreigncurrency (from EEFC account or from abroad)
This also counts for NFE
Apart from the above
EOUs can sell upto 50 of FOB value of physical exportsto the DTA at concessional duties
EOUs can sell over and above that at full duties subject toNFE being positive
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1318
13
EOU Sales to other EOUs
EOUrsquos Sales are duty-free to Indian entities like SEZ EOU EPZ STP EHTP units
Advance Licence Holders
Bonded Warehouses amp
Educational institutions defence establishments otheragencies notified by Government of India as eligible forduty-free imports
These sales count for computation of NFE But they do not count as physical exports
They can be invoiced in foreign currency or inIndian currency
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1418
14
EOUs amp Subcontracting
EOUs can subcontract up to 50 of production or part
of production process to units in the EOU or Indian
manufacturers
EOUs may temporarily take to the job workerrsquos premises
jigs moulds tools fixtures tackles instruments hangerspatterns amp drawings for job work
EOUs can even subcontract to units abroad
EOUs can import raw materials amp components free of cost
for job-working and returnEOUs can undertake job-work for export on behalf of
local manufacturers
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1518
15
EOU Scheme Exit Policy
Units can de-bond without paying duties capital goods they
have used for 10 yearsSoftware units can de-bond on duty-free basis after 3 years
Units can wind up their operations on meeting their export
obligations by
Exporting back any imported capital goods and othermaterial or transferring them to another SEZEOU unit or
Destroying the items in Customs presence or
Donation on gratis basis to educational institutions or
De-bonding on payment of duty on capital goods under the
EPCG Scheme as a one time option or
De-bonding all duty-foregone items by paying duties at current
rates on unutilised raw materials (imported value) and on capital
goods (on depreciated value only) and selling them in the DTA
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1618
16
EOU Scheme Exit Policy
In case of failure to achieve positive NFEduty foregone under the EOU scheme withinterest is recoverable in proportion to the
shortfall in NFEIf the unit has not met positive NFE de-
bonding shall also be subject to payment of penalties under the Foreign Trade(Development amp Regulation) Act 1992 andunder the Customs Act 1960
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1718
17
EOU Scheme Who can operate
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 418
4
EOU Scheme Features
bull EOUs may export all products except prohibited items of exports
bull EOUs may import without duty all types of goods includingcapital goods required for its activities unless they areprohibited for import
Even second hand plant amp machinery can be imported
Capital Goods can be purchased loaned sourced fromforeigndomestic leasing companies or brought free of cost
EOUs get upto 5 years for utilization of imported capital
goods and upto 3 years for other items
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 518
5
EOUs amp FDI
100 FDI in manufacturing EOUs is permitted under the
automatic route of the Reserve Bank of India
ie first bring in the money and then inform Reserve Bank of
Indiarsquos local office in Form FC(RBI) within 30 days of receipt
Also under the automatic route for EOUs are
External Commercial Borrowing upto USD 50 million with
maturities of 3 years or more for funding and running the unit
Use of brand namestrademarks if royalty is upto 2 on exports and
1 on domestic sales without technology transfer
Foreign technology tie-ups if lump sum payment does not exceedUSD 2 million and if royalty is upto 5 on domestic sales and 8 on
exports even for wholly owned subsidiaries
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 618
6
EOUs and Foreign Exchange
EOUs may freely repatriate investment amp returns
abroad
EOUs need to bring export proceeds to India only
within 360 days of export
And even then upto 100 may be retained in foreign
currency in the unitrsquos EEFC Account
EOUs may invoice sales to other EOUs etc in foreign
exchange
EOUs may invoice sales to Indian entities other than
EOUs also in foreign exchange sourced from from theirEEFC account or abroad
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 718
7
Tax Concessions for EOUs
New EOUs are entitled under to Corporate Income Taxexemption on physical exports out of India till 2009
Central Sales Tax is reimbursed on purchases from
local manufacturers
Supplies from local manufacturers are free of Central
Excise Duty
In case duties are paid Terminal Excise Duty is
reimbursedEOUs in manufacturing sector get exemption from
State Sales Tax on inputs (excepting fuel)
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 818
8
EOU Scheme amp DTA entities
bull Existing Indian entities can open a new EOU under
the same legal entity ndash But the EOU division must maintain separate accounts
including separate Bank accounts
bull DTA units can also convert to EOU scheme ndash
Units working with EPCG Advance Licencing can alsoconvert to EOU scheme
ndash Their pending licence obligations will be subsumed intothe EOU scheme
ndash But to be eligible for Corporate Income Tax concessions
under section 10B it has to be ensured that old assets donot exceed 20 of total assets of the EOU
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 918
9
EOUs amp Customs Department
bull EOUs have to get their premises bonded by the local Customs
Central Excise Department and function under their supervisionbull They can get a location of their choice so bonded
ndash All duty-free items have to be brought here first
bull One single multi-purpose bond with the Customs Central Excise
Department called the B 17 Bond suffices for all operationsbull While there is no physical control there is record-based control
ndash EOU has to maintain proper account of the import consumption andutilisation of all importedlocally procured materials and exports made andsubmit them periodically to the Customs
bullDuty foregone under the EOU scheme with interest is recoverablein case of fraudulent activity (along with prosecution amp penalties)
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1018
10
Export Obligations of EOUs
EOUs have only to be foreign exchange positiveFE Inflowsgt FE Outflows
where
bull FE Inflows = Export earnings (Direct Exports+ Exports throughThird Parties + Inter-unit Sales + Exports to
EOUSEZSTPEHTPs)
bull FE Outflows = Foreign Exchange outgo on imports of Rawmaterialsconsumables + FE payments of commission royalty fees dividends interest on ECB + share of amortised value of
capital goods imported Imported capital goods are amortized over 10 years only amortized
amount is included in NFE calculation Values are included in the calculation even if the imports are not actually
paid for
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1118
11
EOU Scheme- Duty-free Supplies from Indian
Market
Supplies from Indian manufacturers to EOUs areclassified as deemed exports and the suppliers are
eligible for
Advance Licence for import of intermediate inputs
Deemed Export Duty Drawback
Discharge of export performance obligation on the supplier
EOUs may obtain on production of a suitable
disclaimer from the suppliers the duty drawback andrefund of Terminal Excise Duty
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1218
12
EOUsrsquo Access to Indian Market
Sales to the Indian Market
EOUs can sell duty-free to other EOU SEZ STP EHTPsetc
EOUs can sell on full duties in the DTA against foreigncurrency (from EEFC account or from abroad)
This also counts for NFE
Apart from the above
EOUs can sell upto 50 of FOB value of physical exportsto the DTA at concessional duties
EOUs can sell over and above that at full duties subject toNFE being positive
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1318
13
EOU Sales to other EOUs
EOUrsquos Sales are duty-free to Indian entities like SEZ EOU EPZ STP EHTP units
Advance Licence Holders
Bonded Warehouses amp
Educational institutions defence establishments otheragencies notified by Government of India as eligible forduty-free imports
These sales count for computation of NFE But they do not count as physical exports
They can be invoiced in foreign currency or inIndian currency
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1418
14
EOUs amp Subcontracting
EOUs can subcontract up to 50 of production or part
of production process to units in the EOU or Indian
manufacturers
EOUs may temporarily take to the job workerrsquos premises
jigs moulds tools fixtures tackles instruments hangerspatterns amp drawings for job work
EOUs can even subcontract to units abroad
EOUs can import raw materials amp components free of cost
for job-working and returnEOUs can undertake job-work for export on behalf of
local manufacturers
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1518
15
EOU Scheme Exit Policy
Units can de-bond without paying duties capital goods they
have used for 10 yearsSoftware units can de-bond on duty-free basis after 3 years
Units can wind up their operations on meeting their export
obligations by
Exporting back any imported capital goods and othermaterial or transferring them to another SEZEOU unit or
Destroying the items in Customs presence or
Donation on gratis basis to educational institutions or
De-bonding on payment of duty on capital goods under the
EPCG Scheme as a one time option or
De-bonding all duty-foregone items by paying duties at current
rates on unutilised raw materials (imported value) and on capital
goods (on depreciated value only) and selling them in the DTA
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1618
16
EOU Scheme Exit Policy
In case of failure to achieve positive NFEduty foregone under the EOU scheme withinterest is recoverable in proportion to the
shortfall in NFEIf the unit has not met positive NFE de-
bonding shall also be subject to payment of penalties under the Foreign Trade(Development amp Regulation) Act 1992 andunder the Customs Act 1960
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1718
17
EOU Scheme Who can operate
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 518
5
EOUs amp FDI
100 FDI in manufacturing EOUs is permitted under the
automatic route of the Reserve Bank of India
ie first bring in the money and then inform Reserve Bank of
Indiarsquos local office in Form FC(RBI) within 30 days of receipt
Also under the automatic route for EOUs are
External Commercial Borrowing upto USD 50 million with
maturities of 3 years or more for funding and running the unit
Use of brand namestrademarks if royalty is upto 2 on exports and
1 on domestic sales without technology transfer
Foreign technology tie-ups if lump sum payment does not exceedUSD 2 million and if royalty is upto 5 on domestic sales and 8 on
exports even for wholly owned subsidiaries
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 618
6
EOUs and Foreign Exchange
EOUs may freely repatriate investment amp returns
abroad
EOUs need to bring export proceeds to India only
within 360 days of export
And even then upto 100 may be retained in foreign
currency in the unitrsquos EEFC Account
EOUs may invoice sales to other EOUs etc in foreign
exchange
EOUs may invoice sales to Indian entities other than
EOUs also in foreign exchange sourced from from theirEEFC account or abroad
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 718
7
Tax Concessions for EOUs
New EOUs are entitled under to Corporate Income Taxexemption on physical exports out of India till 2009
Central Sales Tax is reimbursed on purchases from
local manufacturers
Supplies from local manufacturers are free of Central
Excise Duty
In case duties are paid Terminal Excise Duty is
reimbursedEOUs in manufacturing sector get exemption from
State Sales Tax on inputs (excepting fuel)
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 818
8
EOU Scheme amp DTA entities
bull Existing Indian entities can open a new EOU under
the same legal entity ndash But the EOU division must maintain separate accounts
including separate Bank accounts
bull DTA units can also convert to EOU scheme ndash
Units working with EPCG Advance Licencing can alsoconvert to EOU scheme
ndash Their pending licence obligations will be subsumed intothe EOU scheme
ndash But to be eligible for Corporate Income Tax concessions
under section 10B it has to be ensured that old assets donot exceed 20 of total assets of the EOU
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 918
9
EOUs amp Customs Department
bull EOUs have to get their premises bonded by the local Customs
Central Excise Department and function under their supervisionbull They can get a location of their choice so bonded
ndash All duty-free items have to be brought here first
bull One single multi-purpose bond with the Customs Central Excise
Department called the B 17 Bond suffices for all operationsbull While there is no physical control there is record-based control
ndash EOU has to maintain proper account of the import consumption andutilisation of all importedlocally procured materials and exports made andsubmit them periodically to the Customs
bullDuty foregone under the EOU scheme with interest is recoverablein case of fraudulent activity (along with prosecution amp penalties)
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1018
10
Export Obligations of EOUs
EOUs have only to be foreign exchange positiveFE Inflowsgt FE Outflows
where
bull FE Inflows = Export earnings (Direct Exports+ Exports throughThird Parties + Inter-unit Sales + Exports to
EOUSEZSTPEHTPs)
bull FE Outflows = Foreign Exchange outgo on imports of Rawmaterialsconsumables + FE payments of commission royalty fees dividends interest on ECB + share of amortised value of
capital goods imported Imported capital goods are amortized over 10 years only amortized
amount is included in NFE calculation Values are included in the calculation even if the imports are not actually
paid for
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1118
11
EOU Scheme- Duty-free Supplies from Indian
Market
Supplies from Indian manufacturers to EOUs areclassified as deemed exports and the suppliers are
eligible for
Advance Licence for import of intermediate inputs
Deemed Export Duty Drawback
Discharge of export performance obligation on the supplier
EOUs may obtain on production of a suitable
disclaimer from the suppliers the duty drawback andrefund of Terminal Excise Duty
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1218
12
EOUsrsquo Access to Indian Market
Sales to the Indian Market
EOUs can sell duty-free to other EOU SEZ STP EHTPsetc
EOUs can sell on full duties in the DTA against foreigncurrency (from EEFC account or from abroad)
This also counts for NFE
Apart from the above
EOUs can sell upto 50 of FOB value of physical exportsto the DTA at concessional duties
EOUs can sell over and above that at full duties subject toNFE being positive
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1318
13
EOU Sales to other EOUs
EOUrsquos Sales are duty-free to Indian entities like SEZ EOU EPZ STP EHTP units
Advance Licence Holders
Bonded Warehouses amp
Educational institutions defence establishments otheragencies notified by Government of India as eligible forduty-free imports
These sales count for computation of NFE But they do not count as physical exports
They can be invoiced in foreign currency or inIndian currency
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1418
14
EOUs amp Subcontracting
EOUs can subcontract up to 50 of production or part
of production process to units in the EOU or Indian
manufacturers
EOUs may temporarily take to the job workerrsquos premises
jigs moulds tools fixtures tackles instruments hangerspatterns amp drawings for job work
EOUs can even subcontract to units abroad
EOUs can import raw materials amp components free of cost
for job-working and returnEOUs can undertake job-work for export on behalf of
local manufacturers
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1518
15
EOU Scheme Exit Policy
Units can de-bond without paying duties capital goods they
have used for 10 yearsSoftware units can de-bond on duty-free basis after 3 years
Units can wind up their operations on meeting their export
obligations by
Exporting back any imported capital goods and othermaterial or transferring them to another SEZEOU unit or
Destroying the items in Customs presence or
Donation on gratis basis to educational institutions or
De-bonding on payment of duty on capital goods under the
EPCG Scheme as a one time option or
De-bonding all duty-foregone items by paying duties at current
rates on unutilised raw materials (imported value) and on capital
goods (on depreciated value only) and selling them in the DTA
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1618
16
EOU Scheme Exit Policy
In case of failure to achieve positive NFEduty foregone under the EOU scheme withinterest is recoverable in proportion to the
shortfall in NFEIf the unit has not met positive NFE de-
bonding shall also be subject to payment of penalties under the Foreign Trade(Development amp Regulation) Act 1992 andunder the Customs Act 1960
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1718
17
EOU Scheme Who can operate
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 618
6
EOUs and Foreign Exchange
EOUs may freely repatriate investment amp returns
abroad
EOUs need to bring export proceeds to India only
within 360 days of export
And even then upto 100 may be retained in foreign
currency in the unitrsquos EEFC Account
EOUs may invoice sales to other EOUs etc in foreign
exchange
EOUs may invoice sales to Indian entities other than
EOUs also in foreign exchange sourced from from theirEEFC account or abroad
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 718
7
Tax Concessions for EOUs
New EOUs are entitled under to Corporate Income Taxexemption on physical exports out of India till 2009
Central Sales Tax is reimbursed on purchases from
local manufacturers
Supplies from local manufacturers are free of Central
Excise Duty
In case duties are paid Terminal Excise Duty is
reimbursedEOUs in manufacturing sector get exemption from
State Sales Tax on inputs (excepting fuel)
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 818
8
EOU Scheme amp DTA entities
bull Existing Indian entities can open a new EOU under
the same legal entity ndash But the EOU division must maintain separate accounts
including separate Bank accounts
bull DTA units can also convert to EOU scheme ndash
Units working with EPCG Advance Licencing can alsoconvert to EOU scheme
ndash Their pending licence obligations will be subsumed intothe EOU scheme
ndash But to be eligible for Corporate Income Tax concessions
under section 10B it has to be ensured that old assets donot exceed 20 of total assets of the EOU
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 918
9
EOUs amp Customs Department
bull EOUs have to get their premises bonded by the local Customs
Central Excise Department and function under their supervisionbull They can get a location of their choice so bonded
ndash All duty-free items have to be brought here first
bull One single multi-purpose bond with the Customs Central Excise
Department called the B 17 Bond suffices for all operationsbull While there is no physical control there is record-based control
ndash EOU has to maintain proper account of the import consumption andutilisation of all importedlocally procured materials and exports made andsubmit them periodically to the Customs
bullDuty foregone under the EOU scheme with interest is recoverablein case of fraudulent activity (along with prosecution amp penalties)
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1018
10
Export Obligations of EOUs
EOUs have only to be foreign exchange positiveFE Inflowsgt FE Outflows
where
bull FE Inflows = Export earnings (Direct Exports+ Exports throughThird Parties + Inter-unit Sales + Exports to
EOUSEZSTPEHTPs)
bull FE Outflows = Foreign Exchange outgo on imports of Rawmaterialsconsumables + FE payments of commission royalty fees dividends interest on ECB + share of amortised value of
capital goods imported Imported capital goods are amortized over 10 years only amortized
amount is included in NFE calculation Values are included in the calculation even if the imports are not actually
paid for
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1118
11
EOU Scheme- Duty-free Supplies from Indian
Market
Supplies from Indian manufacturers to EOUs areclassified as deemed exports and the suppliers are
eligible for
Advance Licence for import of intermediate inputs
Deemed Export Duty Drawback
Discharge of export performance obligation on the supplier
EOUs may obtain on production of a suitable
disclaimer from the suppliers the duty drawback andrefund of Terminal Excise Duty
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1218
12
EOUsrsquo Access to Indian Market
Sales to the Indian Market
EOUs can sell duty-free to other EOU SEZ STP EHTPsetc
EOUs can sell on full duties in the DTA against foreigncurrency (from EEFC account or from abroad)
This also counts for NFE
Apart from the above
EOUs can sell upto 50 of FOB value of physical exportsto the DTA at concessional duties
EOUs can sell over and above that at full duties subject toNFE being positive
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1318
13
EOU Sales to other EOUs
EOUrsquos Sales are duty-free to Indian entities like SEZ EOU EPZ STP EHTP units
Advance Licence Holders
Bonded Warehouses amp
Educational institutions defence establishments otheragencies notified by Government of India as eligible forduty-free imports
These sales count for computation of NFE But they do not count as physical exports
They can be invoiced in foreign currency or inIndian currency
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1418
14
EOUs amp Subcontracting
EOUs can subcontract up to 50 of production or part
of production process to units in the EOU or Indian
manufacturers
EOUs may temporarily take to the job workerrsquos premises
jigs moulds tools fixtures tackles instruments hangerspatterns amp drawings for job work
EOUs can even subcontract to units abroad
EOUs can import raw materials amp components free of cost
for job-working and returnEOUs can undertake job-work for export on behalf of
local manufacturers
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1518
15
EOU Scheme Exit Policy
Units can de-bond without paying duties capital goods they
have used for 10 yearsSoftware units can de-bond on duty-free basis after 3 years
Units can wind up their operations on meeting their export
obligations by
Exporting back any imported capital goods and othermaterial or transferring them to another SEZEOU unit or
Destroying the items in Customs presence or
Donation on gratis basis to educational institutions or
De-bonding on payment of duty on capital goods under the
EPCG Scheme as a one time option or
De-bonding all duty-foregone items by paying duties at current
rates on unutilised raw materials (imported value) and on capital
goods (on depreciated value only) and selling them in the DTA
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1618
16
EOU Scheme Exit Policy
In case of failure to achieve positive NFEduty foregone under the EOU scheme withinterest is recoverable in proportion to the
shortfall in NFEIf the unit has not met positive NFE de-
bonding shall also be subject to payment of penalties under the Foreign Trade(Development amp Regulation) Act 1992 andunder the Customs Act 1960
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1718
17
EOU Scheme Who can operate
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 718
7
Tax Concessions for EOUs
New EOUs are entitled under to Corporate Income Taxexemption on physical exports out of India till 2009
Central Sales Tax is reimbursed on purchases from
local manufacturers
Supplies from local manufacturers are free of Central
Excise Duty
In case duties are paid Terminal Excise Duty is
reimbursedEOUs in manufacturing sector get exemption from
State Sales Tax on inputs (excepting fuel)
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 818
8
EOU Scheme amp DTA entities
bull Existing Indian entities can open a new EOU under
the same legal entity ndash But the EOU division must maintain separate accounts
including separate Bank accounts
bull DTA units can also convert to EOU scheme ndash
Units working with EPCG Advance Licencing can alsoconvert to EOU scheme
ndash Their pending licence obligations will be subsumed intothe EOU scheme
ndash But to be eligible for Corporate Income Tax concessions
under section 10B it has to be ensured that old assets donot exceed 20 of total assets of the EOU
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 918
9
EOUs amp Customs Department
bull EOUs have to get their premises bonded by the local Customs
Central Excise Department and function under their supervisionbull They can get a location of their choice so bonded
ndash All duty-free items have to be brought here first
bull One single multi-purpose bond with the Customs Central Excise
Department called the B 17 Bond suffices for all operationsbull While there is no physical control there is record-based control
ndash EOU has to maintain proper account of the import consumption andutilisation of all importedlocally procured materials and exports made andsubmit them periodically to the Customs
bullDuty foregone under the EOU scheme with interest is recoverablein case of fraudulent activity (along with prosecution amp penalties)
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1018
10
Export Obligations of EOUs
EOUs have only to be foreign exchange positiveFE Inflowsgt FE Outflows
where
bull FE Inflows = Export earnings (Direct Exports+ Exports throughThird Parties + Inter-unit Sales + Exports to
EOUSEZSTPEHTPs)
bull FE Outflows = Foreign Exchange outgo on imports of Rawmaterialsconsumables + FE payments of commission royalty fees dividends interest on ECB + share of amortised value of
capital goods imported Imported capital goods are amortized over 10 years only amortized
amount is included in NFE calculation Values are included in the calculation even if the imports are not actually
paid for
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1118
11
EOU Scheme- Duty-free Supplies from Indian
Market
Supplies from Indian manufacturers to EOUs areclassified as deemed exports and the suppliers are
eligible for
Advance Licence for import of intermediate inputs
Deemed Export Duty Drawback
Discharge of export performance obligation on the supplier
EOUs may obtain on production of a suitable
disclaimer from the suppliers the duty drawback andrefund of Terminal Excise Duty
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1218
12
EOUsrsquo Access to Indian Market
Sales to the Indian Market
EOUs can sell duty-free to other EOU SEZ STP EHTPsetc
EOUs can sell on full duties in the DTA against foreigncurrency (from EEFC account or from abroad)
This also counts for NFE
Apart from the above
EOUs can sell upto 50 of FOB value of physical exportsto the DTA at concessional duties
EOUs can sell over and above that at full duties subject toNFE being positive
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1318
13
EOU Sales to other EOUs
EOUrsquos Sales are duty-free to Indian entities like SEZ EOU EPZ STP EHTP units
Advance Licence Holders
Bonded Warehouses amp
Educational institutions defence establishments otheragencies notified by Government of India as eligible forduty-free imports
These sales count for computation of NFE But they do not count as physical exports
They can be invoiced in foreign currency or inIndian currency
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1418
14
EOUs amp Subcontracting
EOUs can subcontract up to 50 of production or part
of production process to units in the EOU or Indian
manufacturers
EOUs may temporarily take to the job workerrsquos premises
jigs moulds tools fixtures tackles instruments hangerspatterns amp drawings for job work
EOUs can even subcontract to units abroad
EOUs can import raw materials amp components free of cost
for job-working and returnEOUs can undertake job-work for export on behalf of
local manufacturers
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1518
15
EOU Scheme Exit Policy
Units can de-bond without paying duties capital goods they
have used for 10 yearsSoftware units can de-bond on duty-free basis after 3 years
Units can wind up their operations on meeting their export
obligations by
Exporting back any imported capital goods and othermaterial or transferring them to another SEZEOU unit or
Destroying the items in Customs presence or
Donation on gratis basis to educational institutions or
De-bonding on payment of duty on capital goods under the
EPCG Scheme as a one time option or
De-bonding all duty-foregone items by paying duties at current
rates on unutilised raw materials (imported value) and on capital
goods (on depreciated value only) and selling them in the DTA
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1618
16
EOU Scheme Exit Policy
In case of failure to achieve positive NFEduty foregone under the EOU scheme withinterest is recoverable in proportion to the
shortfall in NFEIf the unit has not met positive NFE de-
bonding shall also be subject to payment of penalties under the Foreign Trade(Development amp Regulation) Act 1992 andunder the Customs Act 1960
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1718
17
EOU Scheme Who can operate
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 818
8
EOU Scheme amp DTA entities
bull Existing Indian entities can open a new EOU under
the same legal entity ndash But the EOU division must maintain separate accounts
including separate Bank accounts
bull DTA units can also convert to EOU scheme ndash
Units working with EPCG Advance Licencing can alsoconvert to EOU scheme
ndash Their pending licence obligations will be subsumed intothe EOU scheme
ndash But to be eligible for Corporate Income Tax concessions
under section 10B it has to be ensured that old assets donot exceed 20 of total assets of the EOU
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 918
9
EOUs amp Customs Department
bull EOUs have to get their premises bonded by the local Customs
Central Excise Department and function under their supervisionbull They can get a location of their choice so bonded
ndash All duty-free items have to be brought here first
bull One single multi-purpose bond with the Customs Central Excise
Department called the B 17 Bond suffices for all operationsbull While there is no physical control there is record-based control
ndash EOU has to maintain proper account of the import consumption andutilisation of all importedlocally procured materials and exports made andsubmit them periodically to the Customs
bullDuty foregone under the EOU scheme with interest is recoverablein case of fraudulent activity (along with prosecution amp penalties)
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1018
10
Export Obligations of EOUs
EOUs have only to be foreign exchange positiveFE Inflowsgt FE Outflows
where
bull FE Inflows = Export earnings (Direct Exports+ Exports throughThird Parties + Inter-unit Sales + Exports to
EOUSEZSTPEHTPs)
bull FE Outflows = Foreign Exchange outgo on imports of Rawmaterialsconsumables + FE payments of commission royalty fees dividends interest on ECB + share of amortised value of
capital goods imported Imported capital goods are amortized over 10 years only amortized
amount is included in NFE calculation Values are included in the calculation even if the imports are not actually
paid for
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1118
11
EOU Scheme- Duty-free Supplies from Indian
Market
Supplies from Indian manufacturers to EOUs areclassified as deemed exports and the suppliers are
eligible for
Advance Licence for import of intermediate inputs
Deemed Export Duty Drawback
Discharge of export performance obligation on the supplier
EOUs may obtain on production of a suitable
disclaimer from the suppliers the duty drawback andrefund of Terminal Excise Duty
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1218
12
EOUsrsquo Access to Indian Market
Sales to the Indian Market
EOUs can sell duty-free to other EOU SEZ STP EHTPsetc
EOUs can sell on full duties in the DTA against foreigncurrency (from EEFC account or from abroad)
This also counts for NFE
Apart from the above
EOUs can sell upto 50 of FOB value of physical exportsto the DTA at concessional duties
EOUs can sell over and above that at full duties subject toNFE being positive
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1318
13
EOU Sales to other EOUs
EOUrsquos Sales are duty-free to Indian entities like SEZ EOU EPZ STP EHTP units
Advance Licence Holders
Bonded Warehouses amp
Educational institutions defence establishments otheragencies notified by Government of India as eligible forduty-free imports
These sales count for computation of NFE But they do not count as physical exports
They can be invoiced in foreign currency or inIndian currency
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1418
14
EOUs amp Subcontracting
EOUs can subcontract up to 50 of production or part
of production process to units in the EOU or Indian
manufacturers
EOUs may temporarily take to the job workerrsquos premises
jigs moulds tools fixtures tackles instruments hangerspatterns amp drawings for job work
EOUs can even subcontract to units abroad
EOUs can import raw materials amp components free of cost
for job-working and returnEOUs can undertake job-work for export on behalf of
local manufacturers
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1518
15
EOU Scheme Exit Policy
Units can de-bond without paying duties capital goods they
have used for 10 yearsSoftware units can de-bond on duty-free basis after 3 years
Units can wind up their operations on meeting their export
obligations by
Exporting back any imported capital goods and othermaterial or transferring them to another SEZEOU unit or
Destroying the items in Customs presence or
Donation on gratis basis to educational institutions or
De-bonding on payment of duty on capital goods under the
EPCG Scheme as a one time option or
De-bonding all duty-foregone items by paying duties at current
rates on unutilised raw materials (imported value) and on capital
goods (on depreciated value only) and selling them in the DTA
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1618
16
EOU Scheme Exit Policy
In case of failure to achieve positive NFEduty foregone under the EOU scheme withinterest is recoverable in proportion to the
shortfall in NFEIf the unit has not met positive NFE de-
bonding shall also be subject to payment of penalties under the Foreign Trade(Development amp Regulation) Act 1992 andunder the Customs Act 1960
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1718
17
EOU Scheme Who can operate
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 918
9
EOUs amp Customs Department
bull EOUs have to get their premises bonded by the local Customs
Central Excise Department and function under their supervisionbull They can get a location of their choice so bonded
ndash All duty-free items have to be brought here first
bull One single multi-purpose bond with the Customs Central Excise
Department called the B 17 Bond suffices for all operationsbull While there is no physical control there is record-based control
ndash EOU has to maintain proper account of the import consumption andutilisation of all importedlocally procured materials and exports made andsubmit them periodically to the Customs
bullDuty foregone under the EOU scheme with interest is recoverablein case of fraudulent activity (along with prosecution amp penalties)
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1018
10
Export Obligations of EOUs
EOUs have only to be foreign exchange positiveFE Inflowsgt FE Outflows
where
bull FE Inflows = Export earnings (Direct Exports+ Exports throughThird Parties + Inter-unit Sales + Exports to
EOUSEZSTPEHTPs)
bull FE Outflows = Foreign Exchange outgo on imports of Rawmaterialsconsumables + FE payments of commission royalty fees dividends interest on ECB + share of amortised value of
capital goods imported Imported capital goods are amortized over 10 years only amortized
amount is included in NFE calculation Values are included in the calculation even if the imports are not actually
paid for
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1118
11
EOU Scheme- Duty-free Supplies from Indian
Market
Supplies from Indian manufacturers to EOUs areclassified as deemed exports and the suppliers are
eligible for
Advance Licence for import of intermediate inputs
Deemed Export Duty Drawback
Discharge of export performance obligation on the supplier
EOUs may obtain on production of a suitable
disclaimer from the suppliers the duty drawback andrefund of Terminal Excise Duty
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1218
12
EOUsrsquo Access to Indian Market
Sales to the Indian Market
EOUs can sell duty-free to other EOU SEZ STP EHTPsetc
EOUs can sell on full duties in the DTA against foreigncurrency (from EEFC account or from abroad)
This also counts for NFE
Apart from the above
EOUs can sell upto 50 of FOB value of physical exportsto the DTA at concessional duties
EOUs can sell over and above that at full duties subject toNFE being positive
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1318
13
EOU Sales to other EOUs
EOUrsquos Sales are duty-free to Indian entities like SEZ EOU EPZ STP EHTP units
Advance Licence Holders
Bonded Warehouses amp
Educational institutions defence establishments otheragencies notified by Government of India as eligible forduty-free imports
These sales count for computation of NFE But they do not count as physical exports
They can be invoiced in foreign currency or inIndian currency
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1418
14
EOUs amp Subcontracting
EOUs can subcontract up to 50 of production or part
of production process to units in the EOU or Indian
manufacturers
EOUs may temporarily take to the job workerrsquos premises
jigs moulds tools fixtures tackles instruments hangerspatterns amp drawings for job work
EOUs can even subcontract to units abroad
EOUs can import raw materials amp components free of cost
for job-working and returnEOUs can undertake job-work for export on behalf of
local manufacturers
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1518
15
EOU Scheme Exit Policy
Units can de-bond without paying duties capital goods they
have used for 10 yearsSoftware units can de-bond on duty-free basis after 3 years
Units can wind up their operations on meeting their export
obligations by
Exporting back any imported capital goods and othermaterial or transferring them to another SEZEOU unit or
Destroying the items in Customs presence or
Donation on gratis basis to educational institutions or
De-bonding on payment of duty on capital goods under the
EPCG Scheme as a one time option or
De-bonding all duty-foregone items by paying duties at current
rates on unutilised raw materials (imported value) and on capital
goods (on depreciated value only) and selling them in the DTA
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1618
16
EOU Scheme Exit Policy
In case of failure to achieve positive NFEduty foregone under the EOU scheme withinterest is recoverable in proportion to the
shortfall in NFEIf the unit has not met positive NFE de-
bonding shall also be subject to payment of penalties under the Foreign Trade(Development amp Regulation) Act 1992 andunder the Customs Act 1960
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1718
17
EOU Scheme Who can operate
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1018
10
Export Obligations of EOUs
EOUs have only to be foreign exchange positiveFE Inflowsgt FE Outflows
where
bull FE Inflows = Export earnings (Direct Exports+ Exports throughThird Parties + Inter-unit Sales + Exports to
EOUSEZSTPEHTPs)
bull FE Outflows = Foreign Exchange outgo on imports of Rawmaterialsconsumables + FE payments of commission royalty fees dividends interest on ECB + share of amortised value of
capital goods imported Imported capital goods are amortized over 10 years only amortized
amount is included in NFE calculation Values are included in the calculation even if the imports are not actually
paid for
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1118
11
EOU Scheme- Duty-free Supplies from Indian
Market
Supplies from Indian manufacturers to EOUs areclassified as deemed exports and the suppliers are
eligible for
Advance Licence for import of intermediate inputs
Deemed Export Duty Drawback
Discharge of export performance obligation on the supplier
EOUs may obtain on production of a suitable
disclaimer from the suppliers the duty drawback andrefund of Terminal Excise Duty
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1218
12
EOUsrsquo Access to Indian Market
Sales to the Indian Market
EOUs can sell duty-free to other EOU SEZ STP EHTPsetc
EOUs can sell on full duties in the DTA against foreigncurrency (from EEFC account or from abroad)
This also counts for NFE
Apart from the above
EOUs can sell upto 50 of FOB value of physical exportsto the DTA at concessional duties
EOUs can sell over and above that at full duties subject toNFE being positive
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1318
13
EOU Sales to other EOUs
EOUrsquos Sales are duty-free to Indian entities like SEZ EOU EPZ STP EHTP units
Advance Licence Holders
Bonded Warehouses amp
Educational institutions defence establishments otheragencies notified by Government of India as eligible forduty-free imports
These sales count for computation of NFE But they do not count as physical exports
They can be invoiced in foreign currency or inIndian currency
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1418
14
EOUs amp Subcontracting
EOUs can subcontract up to 50 of production or part
of production process to units in the EOU or Indian
manufacturers
EOUs may temporarily take to the job workerrsquos premises
jigs moulds tools fixtures tackles instruments hangerspatterns amp drawings for job work
EOUs can even subcontract to units abroad
EOUs can import raw materials amp components free of cost
for job-working and returnEOUs can undertake job-work for export on behalf of
local manufacturers
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1518
15
EOU Scheme Exit Policy
Units can de-bond without paying duties capital goods they
have used for 10 yearsSoftware units can de-bond on duty-free basis after 3 years
Units can wind up their operations on meeting their export
obligations by
Exporting back any imported capital goods and othermaterial or transferring them to another SEZEOU unit or
Destroying the items in Customs presence or
Donation on gratis basis to educational institutions or
De-bonding on payment of duty on capital goods under the
EPCG Scheme as a one time option or
De-bonding all duty-foregone items by paying duties at current
rates on unutilised raw materials (imported value) and on capital
goods (on depreciated value only) and selling them in the DTA
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1618
16
EOU Scheme Exit Policy
In case of failure to achieve positive NFEduty foregone under the EOU scheme withinterest is recoverable in proportion to the
shortfall in NFEIf the unit has not met positive NFE de-
bonding shall also be subject to payment of penalties under the Foreign Trade(Development amp Regulation) Act 1992 andunder the Customs Act 1960
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1718
17
EOU Scheme Who can operate
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1118
11
EOU Scheme- Duty-free Supplies from Indian
Market
Supplies from Indian manufacturers to EOUs areclassified as deemed exports and the suppliers are
eligible for
Advance Licence for import of intermediate inputs
Deemed Export Duty Drawback
Discharge of export performance obligation on the supplier
EOUs may obtain on production of a suitable
disclaimer from the suppliers the duty drawback andrefund of Terminal Excise Duty
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1218
12
EOUsrsquo Access to Indian Market
Sales to the Indian Market
EOUs can sell duty-free to other EOU SEZ STP EHTPsetc
EOUs can sell on full duties in the DTA against foreigncurrency (from EEFC account or from abroad)
This also counts for NFE
Apart from the above
EOUs can sell upto 50 of FOB value of physical exportsto the DTA at concessional duties
EOUs can sell over and above that at full duties subject toNFE being positive
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1318
13
EOU Sales to other EOUs
EOUrsquos Sales are duty-free to Indian entities like SEZ EOU EPZ STP EHTP units
Advance Licence Holders
Bonded Warehouses amp
Educational institutions defence establishments otheragencies notified by Government of India as eligible forduty-free imports
These sales count for computation of NFE But they do not count as physical exports
They can be invoiced in foreign currency or inIndian currency
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1418
14
EOUs amp Subcontracting
EOUs can subcontract up to 50 of production or part
of production process to units in the EOU or Indian
manufacturers
EOUs may temporarily take to the job workerrsquos premises
jigs moulds tools fixtures tackles instruments hangerspatterns amp drawings for job work
EOUs can even subcontract to units abroad
EOUs can import raw materials amp components free of cost
for job-working and returnEOUs can undertake job-work for export on behalf of
local manufacturers
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1518
15
EOU Scheme Exit Policy
Units can de-bond without paying duties capital goods they
have used for 10 yearsSoftware units can de-bond on duty-free basis after 3 years
Units can wind up their operations on meeting their export
obligations by
Exporting back any imported capital goods and othermaterial or transferring them to another SEZEOU unit or
Destroying the items in Customs presence or
Donation on gratis basis to educational institutions or
De-bonding on payment of duty on capital goods under the
EPCG Scheme as a one time option or
De-bonding all duty-foregone items by paying duties at current
rates on unutilised raw materials (imported value) and on capital
goods (on depreciated value only) and selling them in the DTA
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1618
16
EOU Scheme Exit Policy
In case of failure to achieve positive NFEduty foregone under the EOU scheme withinterest is recoverable in proportion to the
shortfall in NFEIf the unit has not met positive NFE de-
bonding shall also be subject to payment of penalties under the Foreign Trade(Development amp Regulation) Act 1992 andunder the Customs Act 1960
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1718
17
EOU Scheme Who can operate
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1218
12
EOUsrsquo Access to Indian Market
Sales to the Indian Market
EOUs can sell duty-free to other EOU SEZ STP EHTPsetc
EOUs can sell on full duties in the DTA against foreigncurrency (from EEFC account or from abroad)
This also counts for NFE
Apart from the above
EOUs can sell upto 50 of FOB value of physical exportsto the DTA at concessional duties
EOUs can sell over and above that at full duties subject toNFE being positive
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1318
13
EOU Sales to other EOUs
EOUrsquos Sales are duty-free to Indian entities like SEZ EOU EPZ STP EHTP units
Advance Licence Holders
Bonded Warehouses amp
Educational institutions defence establishments otheragencies notified by Government of India as eligible forduty-free imports
These sales count for computation of NFE But they do not count as physical exports
They can be invoiced in foreign currency or inIndian currency
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1418
14
EOUs amp Subcontracting
EOUs can subcontract up to 50 of production or part
of production process to units in the EOU or Indian
manufacturers
EOUs may temporarily take to the job workerrsquos premises
jigs moulds tools fixtures tackles instruments hangerspatterns amp drawings for job work
EOUs can even subcontract to units abroad
EOUs can import raw materials amp components free of cost
for job-working and returnEOUs can undertake job-work for export on behalf of
local manufacturers
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1518
15
EOU Scheme Exit Policy
Units can de-bond without paying duties capital goods they
have used for 10 yearsSoftware units can de-bond on duty-free basis after 3 years
Units can wind up their operations on meeting their export
obligations by
Exporting back any imported capital goods and othermaterial or transferring them to another SEZEOU unit or
Destroying the items in Customs presence or
Donation on gratis basis to educational institutions or
De-bonding on payment of duty on capital goods under the
EPCG Scheme as a one time option or
De-bonding all duty-foregone items by paying duties at current
rates on unutilised raw materials (imported value) and on capital
goods (on depreciated value only) and selling them in the DTA
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1618
16
EOU Scheme Exit Policy
In case of failure to achieve positive NFEduty foregone under the EOU scheme withinterest is recoverable in proportion to the
shortfall in NFEIf the unit has not met positive NFE de-
bonding shall also be subject to payment of penalties under the Foreign Trade(Development amp Regulation) Act 1992 andunder the Customs Act 1960
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1718
17
EOU Scheme Who can operate
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1318
13
EOU Sales to other EOUs
EOUrsquos Sales are duty-free to Indian entities like SEZ EOU EPZ STP EHTP units
Advance Licence Holders
Bonded Warehouses amp
Educational institutions defence establishments otheragencies notified by Government of India as eligible forduty-free imports
These sales count for computation of NFE But they do not count as physical exports
They can be invoiced in foreign currency or inIndian currency
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1418
14
EOUs amp Subcontracting
EOUs can subcontract up to 50 of production or part
of production process to units in the EOU or Indian
manufacturers
EOUs may temporarily take to the job workerrsquos premises
jigs moulds tools fixtures tackles instruments hangerspatterns amp drawings for job work
EOUs can even subcontract to units abroad
EOUs can import raw materials amp components free of cost
for job-working and returnEOUs can undertake job-work for export on behalf of
local manufacturers
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1518
15
EOU Scheme Exit Policy
Units can de-bond without paying duties capital goods they
have used for 10 yearsSoftware units can de-bond on duty-free basis after 3 years
Units can wind up their operations on meeting their export
obligations by
Exporting back any imported capital goods and othermaterial or transferring them to another SEZEOU unit or
Destroying the items in Customs presence or
Donation on gratis basis to educational institutions or
De-bonding on payment of duty on capital goods under the
EPCG Scheme as a one time option or
De-bonding all duty-foregone items by paying duties at current
rates on unutilised raw materials (imported value) and on capital
goods (on depreciated value only) and selling them in the DTA
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1618
16
EOU Scheme Exit Policy
In case of failure to achieve positive NFEduty foregone under the EOU scheme withinterest is recoverable in proportion to the
shortfall in NFEIf the unit has not met positive NFE de-
bonding shall also be subject to payment of penalties under the Foreign Trade(Development amp Regulation) Act 1992 andunder the Customs Act 1960
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1718
17
EOU Scheme Who can operate
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1418
14
EOUs amp Subcontracting
EOUs can subcontract up to 50 of production or part
of production process to units in the EOU or Indian
manufacturers
EOUs may temporarily take to the job workerrsquos premises
jigs moulds tools fixtures tackles instruments hangerspatterns amp drawings for job work
EOUs can even subcontract to units abroad
EOUs can import raw materials amp components free of cost
for job-working and returnEOUs can undertake job-work for export on behalf of
local manufacturers
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1518
15
EOU Scheme Exit Policy
Units can de-bond without paying duties capital goods they
have used for 10 yearsSoftware units can de-bond on duty-free basis after 3 years
Units can wind up their operations on meeting their export
obligations by
Exporting back any imported capital goods and othermaterial or transferring them to another SEZEOU unit or
Destroying the items in Customs presence or
Donation on gratis basis to educational institutions or
De-bonding on payment of duty on capital goods under the
EPCG Scheme as a one time option or
De-bonding all duty-foregone items by paying duties at current
rates on unutilised raw materials (imported value) and on capital
goods (on depreciated value only) and selling them in the DTA
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1618
16
EOU Scheme Exit Policy
In case of failure to achieve positive NFEduty foregone under the EOU scheme withinterest is recoverable in proportion to the
shortfall in NFEIf the unit has not met positive NFE de-
bonding shall also be subject to payment of penalties under the Foreign Trade(Development amp Regulation) Act 1992 andunder the Customs Act 1960
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1718
17
EOU Scheme Who can operate
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1518
15
EOU Scheme Exit Policy
Units can de-bond without paying duties capital goods they
have used for 10 yearsSoftware units can de-bond on duty-free basis after 3 years
Units can wind up their operations on meeting their export
obligations by
Exporting back any imported capital goods and othermaterial or transferring them to another SEZEOU unit or
Destroying the items in Customs presence or
Donation on gratis basis to educational institutions or
De-bonding on payment of duty on capital goods under the
EPCG Scheme as a one time option or
De-bonding all duty-foregone items by paying duties at current
rates on unutilised raw materials (imported value) and on capital
goods (on depreciated value only) and selling them in the DTA
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1618
16
EOU Scheme Exit Policy
In case of failure to achieve positive NFEduty foregone under the EOU scheme withinterest is recoverable in proportion to the
shortfall in NFEIf the unit has not met positive NFE de-
bonding shall also be subject to payment of penalties under the Foreign Trade(Development amp Regulation) Act 1992 andunder the Customs Act 1960
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1718
17
EOU Scheme Who can operate
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1618
16
EOU Scheme Exit Policy
In case of failure to achieve positive NFEduty foregone under the EOU scheme withinterest is recoverable in proportion to the
shortfall in NFEIf the unit has not met positive NFE de-
bonding shall also be subject to payment of penalties under the Foreign Trade(Development amp Regulation) Act 1992 andunder the Customs Act 1960
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1718
17
EOU Scheme Who can operate
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1718
17
EOU Scheme Who can operate
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
bull To run manufacturing activities foreign companies
need to set up an Indian Company ndash The Indian Company has to have independent legal status
distinct from the parent foreign company
ndash The Company may be a wholly-owned subsidiary or a
joint venture company in financial collaboration with anIndian company in India
bull A Company registered in India can start an EOU
unit without starting a new legal entity separate
accounts suffice
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874
7292019 EOU Scheme Slideshow
httpslidepdfcomreaderfulleou-scheme-slideshow 1818
18
How to Contact
bull For more details of Indian EOUs see website
httpeouindiacom bull For details of EOUs with the Development Commissioner
CSEZ see wwwcepzcomsezheouindexhtm ndash especially the ldquoHow To Applyrdquo section at
httpwwwcepzcomeouhowtoapply
bull Contact CSEZ officeat Cochin mailcsezcom
Phone in at ++91-484-2413222
at Bangalore adcblrcsezcom
Phone in at 080-25714874