Welcome to department of commerce, government of india. However, granite quarrying units, agriculture and allied sector units are allowed to supply transfer the capital goods and the inputs in the farmsfields with prior permission of customs. Existing dta units or epcg units are permitted for conversion intoeou scheme. If the unit is having outstanding export commitmentunder the advance licensing scheme, it will discharge the same aswell, as per its conditions before conversion into eou scheme. A detail of administration of eous and power of dc is given in hbp. What procedure will be followed by eou to import g oods without payment of customs duty in the gst regime.
Export oriented units eous, electronics hardware technology parks ehtps, software technology parks. Goods imported by a unit shall be with actual user condition. Introduction the purpose of this scheme was basically to boost exports by creating additional production capacity with certain minimum value addition. Export oriented units eou the concept of a domestic tariff area dta sale from an eou. The respondent filed three refund claims with the assistant commissioner of customs, bengaluru under r. Provisions of the said chapter 6 and its procedures have also been made applicable to the electronics hardware technology parks ehtps. Export oriented units 1 special economic zones 4 setting up of sez 7 free trade and warehousing zones 8 facilities available in a ftwz 9 some ftwz in india 140 institutional framework for promotion of exports 140 ministry of commerce 141 autonomous bodies public sector undertakings export promotion councilsother organizations 144. Exemptions from igst and cess on the imports made under the advance authorisation export promotion capital goods export oriented units schemes, proposed to be extended till 31 march 2021. Jul 23, 2014 for export oriented units in india, complying with export procedures and documentation is a big challenge. The prime importance of export oriented units is duty free movement of goods. Direct assistance to export oriented units and also to import substituting units in the small scale sector is given the highest priority. The unit is also required to execute a b17 bond with. The main objectives of the eou scheme is to increase exports, earn foreign exchange to the country, transfer of latest technologies stimulate direct. With a view to create worldclass infrastructural facilities for export oriented production operations, the developer or codeveloper is encouraged to develop, construct, install.
Thus, under the gst regime there will be a standardised form for making any claim for refunds. Any enterprise whose export sales exceed 70% of the total annual production of the preceding taxable year shall be considered an export oriented enterprise. Provisions of the said chapter 6 and its procedures have also. Projects on export oriented units, projects 100% eou npcs.
Procedure to be followed in case of deemed export supplies rule 89 of the cgst rules, 2017 as amended vide notification no. Shall call one or more witnesses while lifting of samples. It was introduced as a complementary scheme to the free trade zones export processing zone epz scheme introduced in the sixties, which had. Procedure to be followed in case of deemed export supplies rule 89 of the cgst rules, 2017 as amended vide notification. Export oriented units eou a dominant sector in indias export production scenario makarand lele vikas agarwal partner team leader mrm associates company secretaries pune.
Removal of mandatory warehousing requirement for export oriented units 3 august 2016 background export oriented units eous including software technology park units and electronic hardware technology park units are established in terms of foreign trade policy ftp for primarily undertaking export of goods and services except permissible. The purpose of the scheme was basically to boost exports by creating additional production capacity. Units may import andor procure from a bonded warehouse. Supply of goods from one eou to another eou will be treated as any other supply under gst law. Handbook on ha foreign trade policy ndbo and ok o guide to. Import of capital goods will be on a selfcertification basis. No exemptions have been specified in the draft law for stp and sez units. Export oriented unit eou special economic zone sez. Economic zone for more than one sector where units may be set up for manufacture of goods falling in two or more sectors or.
It adopts the same production regime but offers a wide option in locations with reference to factors like sources of raw material, ports of export, hinterland facilities, availability of technological skills, existence of an. Introduction international business nature and scope. Gst law and procedure related changes, 39th gst council meeting. Stpi registration is inevitable as per the income tax act 1961 to enjoy tax relaxation from its exports to another country. Even a small mistake in following export procedure in india can lead to large penalties. To avail such import benefits, eous will have to follow the procedure under the. Granite quarrying units, agriculture and allied sector units are allowed to supply transfer the capital goods and the inputs in the farmsfields with prior permission of customs. Government has set up these stpis as export oriented units eou for boosting computer software and other allied it products in a country. How to import samples of goods, machinery in the international trade it has been considered necessary that samples of goods manufactured in one country are sent to another country for being shown or demonstrated for customer appreciation and familiarisation for soliciting orders for goods to be supplied.
An eou can send goods for job work as per section 143 of the cgst act, 2017 and rule 45 of the cgst rules, 2017 and the tax liability shall be discharged accordingly. Google search k8449r uuhf import substitution industries. Indian customs manual, export oriented unit scheme. Export oriented unit eou special economic zone sez foreign collaboration foreign direct investment fdi foreign exchange management fema foreign contribution regulation foreign trade policy ftp export import laws anti dumping goods and service tax gst. Mar 25, 20 concentration of export oriented unites in india is shown in india map. Export oriented units 1 special economic zones 4 setting up of sez 7. Export oriented unit means an export oriented unit. Units shall also be permitted to import goods including capital goods required for approved activity, free of cost or on loan lease from clients. Units undertaking to export their entire production of goods and services except permissible sales in dta, may be set up under the export oriented unit eou scheme, electronics hardware technology park ehtp scheme, software technology park stp scheme or biotechnology park btp scheme for manufacture of goods, including repair, re.
It was introduced as a complementary scheme to the free. Export oriented units the export oriented units eou scheme, introduced in early 1981, is complementary to sez scheme. Export oriented units eous introduction and objectives major export sectors in eous activities need for special license and choosing the location for eou unit with obligations and bonding period of eou defined in exim policy. Conversion of existing manufacturing units into export oriented units the purpose of the scheme was basically to boost exports by. Note 6 export of meat and meat products he allowed subject to the exporter furnishing a certificate to the custom at the time of export that the above items have been obtainedsourced from an abattoirmeat processing p ant registered with apeoa, note 7. Concentration of export oriented unites in india is shown in india map.
Removal of mandatory warehousing requirement for export. Import and export under gst advisory, tax and regulatory. Import process by eou stpi ehtps by ca,cma manoj malpani return for reporting of imported goods. Republic of the philippines department of finance bureau of internal revenue quezon city march 15, 2018 revenue regulations no. Indias overall exports merchandise and services combined in aprilmarch 201920 are estimated to be usd 528. The goods are required to be imported into the eou premises directly. Dec 18, 2009 brief introduction of export oriented unit eou units undertaking to export their entire production of goods and services except permissible sales in the dta, may be set up under the export oriented unit eou for manufacture of goods, including repair, remaking, reconditioning, reengineering, and rendering of services. Exporters should seriously consider having the freight forwarder handle the formidable amount of documentation that exporting requires.
Under the gst law, igst or cgst plus sgst will be payable by the suppliers who. With regard to clearance of import cargo, the eous are placed in a special category, eligible for fast track or green channel clearance through the customs. Procedure to be followed for reimbursement of central sales tax cst on supplies made to export oriented units eous and units in electronic hardware technology park ehtp and software technology park stp. Export oriented units in india india map, map of india. Goods imported by a unit shall be with actual user condition and shall be utilized for export production. Indian agri trade junction provide useful information for exporters regarding export documentation and procedures. Chapter 6 export oriented units eous, electronics hardware. Export oriented units eous introduction and objectives. Units may import andor procure from a bonded warehouse in the dta without payment of customs duties, igst, and.
Aug 07, 2012 existing dta units or epcg units are permitted for conversion intoeou scheme. For export oriented units in india, complying with export procedures and documentation is a big challenge. Chapter 6 export oriented units eous, units in export processing zones epzs, electronics hardware technology parks ehtps and software technology. Increase in gst rate of mobile phones and specified parts recommended. Conversion of existing manufacturing units into export oriented units the purpose of the scheme was basically to boost exports by creating additional production capacity.
With regard to clearance of import cargo, the eous are placed in a special category. Eligibility criteria prior to approval application procedure approval procedure after approval procedure development commissioner approval from state government agencies export performance of eous up to 200809 and units in operation salient features 3. However, once after introduction of gst in india, how does gst work under import of goods to export oriented units. Products of ssi exporters are displayed in international exhibitions with the help of sidbi.
On the cartons for export ot meat, the following details sha compulsory be mentioned. Upfront exemption from customs duty excise duty for stp units and sez units including service tax and cst exemption for sezs may not continue as gst will be payable on. Makarand lele vikas agarwal partner team leader mrm. Brief introduction of export oriented unit eou units undertaking to export their entire production of goods and services except permissible sales in the dta, may be set up under the export oriented unit eou for manufacture of goods, including repair, remaking, reconditioning, reengineering, and rendering of services.
Regulations implementing the valueadded tax provisions under the republic act ra no. Import of capital goods will be on a self certification basis. There has been a simplified procedure for the exports of small scale industries. Therefore, it is very safe, in general, that import substitution project should be preferred to an export oriented project. The respondent is a 100% export oriented unit eou for short engaged in the manufacture of parts of agricultural and farm equipment which are chargeable to nil rate of duty under central excise tariff act, 1985 tariff act.