Where and how to submit the application form for setting up the EOU?
The application for setting up a EOU or EPZ unit has be made in the format prescribed vide Appendix . This form can be downloaded from the DGFT website or from this site under the Heading Exim Policy and Procedures.
Is there any Fees for the processing of the form?
Yes. Rs.5000/- by way of Demand Draft in favour of Pay & Accounts Officer, Ministry of Commerce and Industries , Dept. of Commerce, payable at Central Bank of India, New Delhi.
What is Importer Exporter Code (IEC) and where can this be obtained?
Importer Exporter Code (IEC) is required for carrying out import or export activity. The units located in the EPZ or the EOUs can obtain the same from the Development Commissioners concerned. In respect of units operating in the Domestic Tariff Area, IEC can be obtained from the office of the Director General of Foreign Trade. This form can be downloaded from the DGFT website or from this site under the Heading Exim Policy and Procedures.
What is DTA?
Domestic Tariff Area. The Units operating under certain specific schemes such as EPZ/SEZ/EOU are expected to carryout their activities within customs bonded area. The area which is not coming under the jurisdiction of custom bonded are called Domestic Tariff Area.
What is NFEP and how is it calculated?
A.Net Foreign Exchange Earnings as a Percentage of exports (NFEP). The formula for calculation of NFEP is
A = B / A * 100
A = FOB value of Exports
B = Value of Imported Capital goods, raw materials and outgo of foreign exchange by way of dividends, royalty, selling commission, foreign travel etc.
What is LUT and how is it to be executed?
Legal Undertaking is called LUT. Export Oriented Units / EPZ units are required to execute this undertaking with the concerned Development Commissioner. The format of LUT is available in appendix 14 D of the Hand Book of Procedures. This form can be downloaded from the DGFT website or from this site under the Heading Exim Policy and Procedures.
Whether the foreign investment made in EPZ/EOU units can be repatriated?
Yes. Foreign Investment or NRI investment can be brought on repatriable or non repatriable basis. The dividends accruing on the foreign investments can also be repatriated.
Can second hand machinery be imported under EPZ/ EOU Scheme?
Yes. Subject to provisions mentioned under para 6.3 of the Exim Policy.
Hat is EEFC account?
Exporters of goods / services and other recipients of inward remittances in convertible foreign currency can open EEFC account to keep their foreign exchange earnings in the account.
What are the limits prescribed by Reserve Bank to keep the amount received by way of inward foreign remittances in EEFC accounts?
A 100% EOU or a Unit in EPZ / STP / EHTP can keep upto 70% of their foreign exchange earnings in their account and use it for authorised, bonafide purposes and any other person resident in India can keep upto 50% of the foreign exchange earnings in this account.