EOU can also import second hand capital goods without any age limit.
50% of physical exports can be sold in domestic market on payment of concessional duty.
EOUs can process and export rice (Basmati & Non-Basmati).
EOUs including Gem & Jewellery units are permitted to sub-contract upto 50% of their production (or) production process in DTA / other EOUs.
EOUs are allowed to utilize plant and machinery for job work DTA units provided the goods are exported directly from the EOU premises.
EOUs in Agriculture and allied sectors and in granite sector may transfer the capital goods and the inputs to the Farms/field/quarries for usage relating to the production in the EOU.
In case of new EOUs, Advance DTA sale will be allowed not exceeding 50% of its estimated exports for the first year except the pharmaceutical units where this will be based on its estimated exports for the first two years.
Simultaneous Advance DTA sale permission is given on quarterly basis for perishable goods like mushrooms, cut flowers etc.
Exports through third party is permitted
Exports from the job workers premises is allowed
100% FDI investment permitted through Automatic Route similar to SEZ units
EOUs can obtain Foreign currency loans from OBUs situated in the SEZs
EOUs have to achieve only positive Net Foreign Exchange (NFE) within 5 years i.e., A - B > 0 where (A) is the FOB value of Exports and (B) is CIF value of imports
Fiscal Incentives available to 100% EOUs :
Exemption from Customs and Central Excise duties on import/local procurement of Capital goods, raw materials, consumables, spares, packing material etc.
Reimbursement of Central Sales Tax (CST) on purchases made from Domestic Tariff Area (DTA)
Corporate Tax Holiday upto 2010
CENVAT credit on Service Tax paid
Reimbursement of duty paid on fuels procured from domestic oil companies as per the rate of Drawback notified by the DGFT from time to time.
Special Package of Incentives for Star Export House EOUs (Fast Track Clearance):
Permissions and Customs clearances for both Imports and Exports on self declaration basis.
Fixation of Input-Output norms on priority within 60 days.
Exemption from compulsory negotiation of documents through Banks.
100% retention of foreign exchange in EEFC account.
Enhancement of normal repatriation period from 180 days to 360 days.
Exemption from furnishing of Bank Guarantee in Schemes under this policy.
Exemption from examination of Import Cargo
Install one Fax machine & Two computers in their Administrative/Registered Office on prior initiation only.
Procurement of DG set intimation to the Development Commissioner/Jurisdictional Customs/Central Excise authority
Remove their Capital goods (or) part thereof for repairs under prior intimation to the jurisdictional Asst./Deputy Commissioner of Customs & Central Excise authority
DTA clearance of rejects on priority basis
Personal carriage of samples of Gems & Jewellery without a need for prior permission
DTA sale of finished products on prior intimation only
Participation in exhibition for export promotion on prior intimation only
Participants