- EOU Scheme & it’s Working Setting up of EOU
- Minimum Investment Criterion
- Unit Approval Committee (UAC)
- Procedure for Approval of an EOU
EOU Scheme & it’s Working Setting up of EOU
The units endeavor to export their entire production of products and services (except permissible Sales in DTA beneath the FTP) are allowed to be found out beneath EOU theme for the manufacture of products together with repair, re-making, re-conditioning, re-engineering, or the rendering of services. The commercialism unit/ commercialism activity is, however, not allowable beneath the theme. beneath EOU theme, Gems &Jewellery units for creating plain/ adorned jewelry, or for cutting/polishing of diamonds or semi-precious stones, gardening, farming or alternative agricultural product units together with agro process, cultivation, farming, Pisciculture, culture, Poultry, Sericulture, biotechnology and production of granites or cutting of marbles also can be found out.
Minimum Investment Criterion
Only comes with an investment of Rs.1 lakhs and on top of (except in cases of bound such that sectors like EHTP/STP/BTP, Handicrafts/agriculture/ gardening /aquaculture /animal cultivation /information technology, services, Brass Hardware and handwoven jewelry sectors, and such alternative sectors as determined by BOA) in plant & machinery are thought of. All products and services except things that are prohibited in ITC (HS) are allowed to be foreign or exported by the EOUs for or her approved operations subject to the condition that the provisions of any law operative would be applicable in such cases still. Letter of Permission (LOP) to line up EOU or for conversion of existing DTA unit into EOU is given by the territorial Development Commissioner with whom LUT beneath the FTP is needed to be dead. EOUs primarily operate beneath the executive management of the event Commissioner of SEZ involved whose jurisdiction is notified by the Department of Commerce and is given in Appendix 14-I-K of HOP, Vol. I. Application for fixing an EHTP/STP unit is needed to be submitted to the workplace selected by the Department of data Technology. Application for fixing the BTP unit is needed to be submitted to the officer selected by the Department of Bio-Technology. Provisions of Customs Act, 1962 & Central Excise Act, 1944, that apply to EOUs are administered by the workers of territorial Central Excise Commissionerate.
Unit Approval Committee (UAC)
For fixing a unit beneath the EOU theme, the approvals are given by the Unit Approval Committee, which is headed by the territorial Development Commissioner and consists of SEZ officers, officers of the State Govt., and officers of the territorial Central Excise Commissionerate as members (please see Appendix 14-II of HOP, Vol. I for notification issued by DOC for fixing UAC). To watch the performance of EOUs. To perform the other operations is also delegated by the Central Government /State or its agencies.
Procedure for Approval of an EOU
For fixing a producing or Service sector EOU, 3 copies of the application within the format prescribed in Appendix 14-I-A of HOP, Vol. I am needed to be submitted to the territorial Development Commissioner (DC) for thought within the UAC. All the cases received for fixing of an EOU are needed to be placed before the UAC beneath the Chairpersonship of the DC and the unit needed to be approved or rejected by the UAC within an amount of fifteen days of receipt of the appliance. Proposals for fixing of units requiring Industrial Licence or for units within the Service Sector (except package and IT-enabled services, or the other activity as is also delegated by the BOA) is needed to be placed by the DC before the BOA and approval or rejection is needed to be sent to the unit among forty-five days. I am issued to the EOU by the DC /Designated Officer. LOP is valid for three years among the EOU is needed to start industrial production. The validity of LOP may be extended by another three years by the Competent Authority. However, a proposal for extension of validity once six years is to be thought of just in case of remarkable circumstances by BOA on a case basis. Once the unit commences industrial production, the LOP is valid for five years from the date of commencement of business production. Upon completion of five years, the EOU might continue beneath the theme or might choose the theme. wherever unit exercises choice to continue as EOU, involved DC is sceptered to increase approval amount. If no intimation during this regard is received within an amount of six months of the ending of the approval amount, the DC is needed to cancel approval beneath the EOU theme. In case, the unit exercises their choice to continue once ending of six months as stipulated on top, DC is sceptered to grant extension once getting approval of BOA.