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What Is Import?
An import is any goods or services brought from one country to another country in a legitimate fashion.
Introduction on EOU
Introduced in 31st December 1980,by Ministry of Commerce. Purpose: to boost exports by creating additional production capacity.
Decision are taken by Board Of Approvals (BOA) ,under Ministry of Commerce. EOUs are licensed to manufacture goods within the bonded premises.
Period of bond is 5 years (extendable for another 5 years with the permission of development of commissioner) The imported capital goods are allowed to be warehoused for a period of 5 years. For other goods the period is 1 year.
Eligibility Criteria
EOU can be set up by any entrepreneur for manufacturing of goods and also for rendering services. EOU can be set up for repair, reconditioning , re-engineering also. EOU unit is required to achieve only positive NFE over a period of 5 years.
4.After all clearance formalities goods shall be sent to bonded premises of the EOU.
5.Inspector will inspect the goods to ensure their quality, marks and numbers etc and issue the re-warehousing certificate.
Salient Features
No license required for imports (except restricted items). Exemption on customs duty on imports of capital goods, raw materials, consumables, spares, packing materials etc. 100% foreign direct investment permissible. Facility to realize and repatriate export proceeds within 12 months. Even second hand plant and machinery can be imported. EOUs get up to 5 years for utilization of imported capital goods, and up to 3 years for other items.
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