FOREIGN COLLABORATIONS AND INVESTMENTS IN INDIA Export Oriented Units (EOUs) and Units in Export ro!

essin" #ones (E #s)$ E%e!troni! &ard'are Te!(no%o") ar* Units (E&T ) and So+t'are Te!(no%o") ar* Units (ST ) The Export Oriented Unit Scheme is laid down in the EXIM Policy issued by the Ministry of Commerce The !o"ernment found it necessary to step up the #rowth of exports in order to brid#e the increasin# deficit in the balance of trade$ runnin# down of exchan#e reser"es The basic ob%ecti"e underlyin# the scheme of &''( EOUs$ as spelt out at its inception$ and which is true e"en today$ has been to #enerate additional production capacity for exports and thereby earn more forei#n exchan#e for the country by pro"idin# appropriate policy framewor)$ flexibility of operations and incenti"es E%i"i,i%it) Units underta)in# to export their entire production of #oods and ser"ices may be set up under the Export Oriented Unit *EOU+ Scheme$ Export Processin# ,one *EP,+ Scheme$ Electronic -ardware Technolo#y Par) *E-TP+ Scheme or Software Technolo#y Par) *STP+ Scheme Such units may be en#a#ed in manufacture$ ser"ices$ de"elopment of software a#riculture includin# a#ro.processin#$ a/uaculture$ animal hunbandry$ bio.technolo#y$ floriculture$ horticulture$ pisciclture$ "iticulture$ poultry and sericulture and may export all products except #oods mentioned as prohibited items of exports in ITC *-S+ Classifications of Export and Import items Commensurate with the policy to #i"e a special thrust to export of computer software$ such units would be encoura#ed to be set up under any of the aforementioned export oriented schemes Software units may underta)e exports usin# data communication lin)s or in the form of physical exports *which may be throu#h courier ser"ice also+$ includin# export of professional ser"ices App%i!ation *a+ 0or settin# up of a unit in an EP, or as an EOU$ ten copies of the application in the prescribed form may be submitted to the 1e"elopment Commission *1C+ of the EP, concerned *b+ 2pplication for settin# up E-TP3STP units shall be in the format prescribed by the 1epartment of Electronics and shall be submitted to the officer desi#nated by the 1epartment of Electronics for this purpose *c+ 0or settin# up a Pri"ate 4onded 5arehouse *P455-+ in an EP,$ three copies of the application in the prescribed form may be submitted to the 1C of the EP, concerned Letter o+ er-ission.Letter o+ Intent 6etter of Permission *6OP+36etter of Intent *6OI+ issued to EOU3EP,3E-TP3STP units by the concerned authority would be construed as a licence for all purposes$ includin# for

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i%it) o+ Goods 2n EOU3EP.3E-TP3STP unit may import free of duty all types of #oods$ includin# capital #oods as defined in the Policy$ re/uired by it for manufacture$ ser"ices$ production$ processin#$ or in connection therewith$ pro"ided they are not mentioned as prohibited items of imports in ITC*-S+ Classifications of Export and Import items -owe"er$ import of 4asmati paddy3brown rice shall be prohibited The units shall also be permitted to import #oods$ includin# capital #oods$ free of cost or on loan from clients ac/uired for the appro"ed acti"ity EOU3EP. 2n EOU en#a#ed in a#riculture$ animal husbandry$ floriculture$ horticulture$ pisciculture$ "iticulture$ poultry or sericulture may import free of duty only such #oods as are permitted to be imported duty free under a Customs 9otification issued in this behalf Ite-s er-itted +or I-port 2n EOU3EP.3E-TP3STP unit$ it shall ha"e two distinct identities with separate accounts It is$ howe"er$ not necessary for it to be separate le#al entity$ but it should be possible to distin#uish the imports and exports or supplies effected by the EOU3EP.products and re%ects in the 1T2 and such other matter as may be necessary and also impose such conditions as may be re/uired Distin!t Identit) If an industrial enterprise is operatin# both as a domestic unit as well as in EOU3EP.3E-TP units may procure #oods re/uired by them for manufacture$ ser"ices$ production$ processin# or in connection therewith$ duty free$ from bonded warehouses in the 1T2 set up under the Exim Policy STP3E-TP3EP.3E-TP3STP unit may import$ free of duty$ the followin# #oods or as may be additionally specified in the rele"ant customs notification$ re/uired by it for manufacture$ production$ processin#$ ser"ice or in connection therewith$ pro"ided they are not prohibited items in the ITC *-C+ Classifications of Export and Import items *i+ *ii+ Capital #oods as defined in the Policy includin# #eneratin# sets and pollution control and /uality assurance e/uipments includin# their spares: Tools$ %i#s$ fixtures$ #au#es$ moulds$ instruments and accessories: .procurement of raw materials and consumables either directly or throu#h desi#nated canalisin# a#ency The 6OP36OI shall specify the items of manufacture3ser"ice acti"ity$ annual capacity$ pro%ected annual export performance *EP+ for the first fi"e years in dollar terms$ 9et 0orei#n Exchan#e earnin#s as a percenta#e for exports *90EP+$ limitations$ if any$ re#ardin# sale of finished #oods$ by.3E-TP3STP units from those made by the other units of the enterprise I-porta.' . may import free of duty all types of #oods for creatin# a central facility for use by software de"elopment units in STIP3E-TP3EP.

*iii+ *i"+ *"+ *"i+ *"i+ <aw materials$ components$ consumables$ intermediates$ spares and pac)in# materials: Prototypes and technical samples for product di"ersification$ de"elopment or e"aluation: Materials handlin# e/uipment li)e for)lifts and o"erhead cranes: 1rawin#s$ blue prints$ charts$ microfilms and technical data: Office e/uipment$ spares and consumables thereof Conditions o+ I-port The import shall be sub%ect to the followin# conditions= *a+ The #oods shall be imported into the EOU3EP.3E-TP3STP concerned The importer shall ensure minimum 90EP and EP as stipulated in 2ppendix I of the Policy -e shall also abide by all the terms and conditions incorporated in the 6OP36OI3Industrial 6icence *I6+ issued to him 0ailure to ensure minimum 90EP3EP as stipulated in 2ppendix I of the Policy or to abide by any of the terms and conditions of the 6OP36OI3I6 shall render him liable to penal action under the pro"isions of the 0orei#n .3E-TP3STP premises -owe"er$ a#riculture and allied sectors units in EOU3EP. may supply3transfer the capital #oods and the inputs in the farms3fields with prior intimation to the %urisdictional 2ssistant Commissioner of Customs and Central Excise$ pro"ided the ownership of the #oods rests with EOU3EP. units: *b+ The normal procedure as prescribed under Customs3Excise rules for EOUs units and units in EP.s$3E-TP3STP will be followed and appropriate bond executed with Customs3Excise authority *c+ Import of prohibited items in the ITC *-S Classifications of Export and Import items shall not be allowed: *d+ The #oods$ except capital #oods and spares$ shall be utilised as per Policy within a period of two years or as may be extended by Customs 2uthority except #old3sil"er3platinum for which the pro"isions of Chapter > of the Policy shall apply: and *e+ !oods already imported3shipped3arri"ed before the issue of 6OP36OI are also eli#ible for duty free clearance under the EOU3EP.& .3E-TP3STP scheme pro"ided customs duty has not been paid and the #oods ha"e not been cleared from Customs Maintenan!e o+ A!!o/nt o+ I-port and Uti%isation The importer shall maintain in the specified form a proper account of the import$ consumption and utilisation of all imported materials and of the exports made by him and submit them periodically$ as may be re/uired$ to the 1C of the EOU3EP.

Indi"eno/s Goods !oods or parts thereof on bein# imported3indi#enously procured and found defecti"e or otherwise unfit for use or which ha"e been dama#ed after import may be returned or .? .3E-TP3STP units may import second hand capital #oods *ii+ The licence referred to in the Policy for import of second hand #oods shall$ in the case of EOU3EP.3E-TP3STP units may$ temporarily ta)e out the bonded premises duty free laptop computers and "ideo pro%ection systems imported by them for wor)in# upon by authorised employees Re!onditionin"$ Repair and Re0En"ineerin" EOU3EP.3E-TP3STP unit$ will be eli#ible for Central Excise exemption The "alue of imported capital #oods financed throu#h leasin# companies or obtained free of cost and3or on loan basis shall also be ta)en into account for the purpose of calculation of 90EP as defined in the Policy Fax Ma!(ines.3E-TP3STP may install one fax machine at a place of its choice$ outside the appro"ed premises$ sub%ect to intimation of its location to the concerned 2ssistant Commissioner Customs3Central Excise EOU3EP.Repair o+ I-ported.import$ after repairs aboard$ machinery3e/uipment exported by them for this specific purpose 2ny forei#n exchan#e payment for this purpose will also be allowed Capital #oods produced from indi#enous sources on the basis of lease a#reement between the leasin# company and the EOU3EP.3E-TP3STU units$ shall deemed to be the appro"al #i"en by the concerned 1e"elopment Commissioner Leasin" o+ Capita% Goods 2n EOU3EP.en#ineerin# acti"ities for export in freely con"ertible forei#n currency Rep%a!e-ent.3E-TP3STP units may be permitted to import #oods of any ori#in to carry out reconditionin#$ repair$ testin#$ calibration$ /uality impro"ement$ up.Laptop Co-p/ters EOU3EP.Trade *1e"elopment and <e#ulation+ 2ct$ &88? and the <ules and Orders made thereunder without pre%udice to any other action such as cancellation or re"ocation of 6OP36OI3I6 Se!ond &and Capita% Goods *i+ EOU3EP.3E-TP3STP unit and the domestic3forei#n leasin# company shall %ointly file the import documents to enable import of the capital #oods free of duty Re0I-port The units may be allowed by the 2ssistant Commissioner of Customs3Excise concerned$ to re.#radation of technolo#y and re.3E-TP3STP unit may$ on the basis of a firm contract between the parties$ source the capital #oods from a domestic3forei#n leasin# company In such as case$ the EOU3EP.

processin#$ a/uaculture$ animal husbandry$ biotechnolo#y$ floriculture$ horticulture$ poultry$ "iticulture and sericulture such sale may be sub%ect to positi"e 90EP only 9o 1T2 sale shall be permissible in respect of motor cars$ alcoholic li/uors and such other items as may be stipulated by 1irector !eneral of 0orei#n Trade by a public 9otice issued in this behalf Electronic units in EOU3EP.products in the 6OP36OI may be sold in the 1T2 on payment of applicable duty Ot(er S/pp%iers in DTA The followin# supplies in 1T2 shall be counted towards fulfillment of export performance= a b Supplies effected in 1T2 in terms of para#raph &' ? of the Policy Supplies effected in 1T2 a#ainst payment in forei#n exchan#e .7 .destroyed and replacement thereof or the same #oods after repairs$ may be imported from the forei#n suppliers Le"a% Underta*in" The unit shall execute a le#al underta)in# with the 1e"elopment Commissioner concerned and in the e"ent of failure to fulfil the performance$ as stipulated in 2ppendix I$ it would be liable to penalty in terms of the le#al underta)in# or under any other law for the time bein# in force DTA SALES The entire production of EOU3EP. units in toys$ a#riculture$ includin# a#ro.3E-TP3STP Units shall be exported sub%ect to the followin#= Unless specifically prohibited in the 6OP36OI$ re%ects may be sold in the domestic tariff area *1T2+$ on the basis of records maintained by the unit and on prior intimation to the customs authority Such sale abo"e @( of the 0O4 "alue of exports shall be counted a#ainst 1T2 sale entitlement under the Policy Sale of re%ects shall be sub%ect to payment of applicable duties 1T2 sale up to @'( of the 0O4 "alue of exports may be made sub%ect to payment of applicable duties and fulfillment of minimum 90EP prescribed in 2ppendix I of the Policy In the case of EOU3EP.3E-TP shall ha"e an alternati"e facility to sell one.line data communication$ shall be permissible up to @'( of 0O4 "alue of exports Items included as by.half of the "alue of their production on an annual basis$ in the domestic mar)et and export the other half of production$ in "alue terms$ without any minimum forei#n exchan#e earnin# stipulation$ on payment of applicable duties as specifically notified for this facility Units desirous of a"ailin# this facility shall exercise a one time option in this re#ard 0or software units$ sale in the 1T2 in any mode$ includin# on.

3E-TP3STP units pro"ided that such #oods are permissible for procurement in terms of para#raph 8 ? of the Policy Supplies made to 4onded warehouses set up under && &. . of the Policy Supply of #oods a#ainst special entitlement of duty free import of #oods Re1e!ts EOU3EP.t(e DTA a Supplies from the 1T2 to EOU3EP.3E-TP3STP units may sell in the 1T2 re%ects up to @( of f o b "alue of exports$ on the basis of records maintained by it$ as per para 8 8 of the Policy Such sales shall be sub%ect to the followin# conditions= i The term Are%ectsB shall co"er the products which ha"e definite manufacturin# defects and are not exportable as per declaration of the unit concerned and shall include sub.standard products but not spares$ tools$ waste3scrap3remnants and by.products The followin# parameters shall be )ept in "iew for determinin# Are%ectsB a b the unit must certify that the re%ects were an una"oidable feature on account of flaws of technolo#y$ techni/ue or material deployed in manufacture: A<e%ectsB must be in"oiced as stamped by the manufacturer as A<e%ectsB at the time of clearance into the 1omestic Tariff 2rea ii Entit%e-ents +or S/pp%ies +ro.c d e Supplies to other EOU3EP.3E-TP3STP units will be re#arded as Cdeemed exportsD and$ besides bein# eli#ible for the rele"ant entitlements under para#raph &' 7 of this Policy$ will be eli#ible for the followin#= i ii iii b <eimbursement of Central Sales Tax Exemption from payment of Central Excise 1uty on capital #oods$ components and raw materials: and 1ischar#e of EP$ if any$ on the supplier: EOU3EP.3E-TP3STP units shall$ on production of a suitable disclaimer from the 1T2 suppliers$ be eli#ible for obtainin# the entitlement specified in para#raph &' 7*b+$ *c+ and *d+ of the Policy 0or this purpose$ they shall #et 4rand <ates fixed by the 1!0T Such supplies would$ howe"er$ be eli#ible for entitlements specified in para#raph *a+ abo"e ..

s will be char#ed rent for lease of industrial plots and standard desi#n factory buildin#s3sheds as per rates fixed from time to time b c T2X -oliday= EOU3EP.3E-TP3STP units will be eli#ible for exemption from payment of corporate income tax for a bloc) of ten years 0O4 "alue of export of an EOU3EP.LOI If a unit manufactures and exports se"eral products 1T2 sale of any products appro"ed for manufacture and export in the 6OP3I6 may be a"ailed as per para#raph 8 8 of the Policy B/n!(in" o+ DTA Sa%e Entit%e-ent 5ithin the entitlement of 1T2 sale$ as pro"ided in para 8 8 of the Policy$ the unit may sell in 1T2 any of the products manufactured and exported by them$ as per 6OP3I6 Entitlement will be determined in totality and not with reference to specific items Ot(er S/pp%ies in DTA The unit will report the transactions in terms of sub.wise+$ supplied in 1T2 and the total /uantity and "alue of each such item produced by the unit as on the date durin# the year The purchaser of the #oods in the 1T2 shall be liable to pay the duties and taxes as may be le"iable on the #oods in /uestion Such 1T2 sales shall not affect the application to any #oods of any other prohibition or re#ulation affectin# import thereof in force at the time when such #oods are imported This also does not confer any immunity$ exemption or relaxation at any time from any commitment or compliance with any re/uirements to which the importer may be sub%ect to under other laws or re#ulations Net Forei"n Ex!(an"e Earnin" as a er!enta"e o+ Exports (NFE ) .para#raph 8 &' of the Policy to the 1C concerned on a /uarterly basis -owe"er$ units effectin# supplies to the 1T2 in terms of sub.3E-TP3STP units Software units may$ in addition$ also be allowed to use the computer system for trainin# purpose *includin# commercial trainin#+ sub%ect to the condition that no computer terminal shall be installed outside the bonded premises for the purpose d e DTA Sa%e Entit%e-ent o+ rod/!ts appro2ed in LO .Ot(er Entit%e-ents a Units set up in EP.para#raph 8 &'*b+ of the policy shall obtain permission from the concerned 1e"elopment Commissioner In all the cases the unit shall indicate to the 1e"elopment Commissioner concerned the /uantity and "alue of items *cate#ory.@ .3E-TP3STP unit can be clubbed with 0O4 "alue of export or its parent company in the 1T2 for the purpose of accordin# Export -ouse$ Tradin# -ouse$ Star Tradin# -ouse or Super Star Tradin# -ouse status for the latter 0orei#n e/uity up to &''( is permissible in the case of EOU3EP.

3E-TP3STP unit This permission extends only to the mar)etin# of the #oods by the merchant exporter3Export -ouse3Tradin# -ouse3Star Tradin# -ouse3Super Star Tradin# -ouse or other EOU3EP..3E-TP3STP units ha"e been allowed to mar)et their #oods throu#h an Export house *E-+3Tradin# -ouse*T-+3Star Tradin# -ouse *ST-+3Super Star Tradin# -ouse *SST-+3Merchant Exporter or other EOU3EP..Tradin" &o/se....3E-TP3STP unit The manufacture of #oods shall be done in the EOU3EP.4 90EP E ..3E-TP3STP unit concerned Export t(ro/"( Export &o/se.F .3E-TP3STP Units and export the #oods Such exports shall fulfil followin# conditions= *a+ The export orders so procured shall be executed within the parameters of EOU3EP.S/per Star Tradin" &o/se.3E-TP3STP unit: and 4 is the sum total of the CI0 "alue of all imported inputs$ the CI0 "alue of all imported capital #oods$ and the "alue of all payments made in forei#n exchan#e by way of commission$ royalty$ fees$ di"idends$ interest on external borrowin#s durin# the first fi"e year period or any other char#es CInputsD mean raw materials$ intermediates$ components$ consumables$ parts and pac)in# materials Export t(ro/"( Tradin" &o/ses Export throu#h Export -ouse3Tradin# -ouse3Star Tradin# -ouse3Super Star Tradin# -ouse .Mer!(ant Exporter or Ot(er Exporter In terms of the Policy$ EOU3EP..3E-TP3STP unit may export #oods manufactured by it throu#h a merchant export3Export -ouse3Tradin# -ouse3Star Tradin# -ouse3Super Star Tradin# -ouse reco#nised under this Policy or any other EOU3EP.Star Tradin" &o/se.9et 0orei#n Exchan#e Earnin# as a percenta#e of exports *90EP+ shall be calculated annually and cumulati"ely for a period of fi"e years from the commencement of commercial production accordin# to the followin# formula= 2 .. X &'' 5here 90EP is 9et 0orei#n Exchan#e Earnin# as a Percenta#e of Export 2 is the 0O4 "alue of exports by the EOU3EP. 2n EOU3EP..3E-TP3STP schemes and the #oods shall be directly transferred from the Customs bonded unit to the port of shipment: *b+ 0ulfillment of 90EP3EP by EOU3EP. units to Export -ouse3Tradin# -ouse3Star Tradin# -ouse3Super Star Tradin# -ouse3other exporter: .3E-TP3STP units in re#ard to such exports shall be rec)oned on the basis of the price at which the #oods are supplied by EOU3EP.3E-TP3STP unit concerned The le"el of 90EP as well as any other conditions relatin# to the imports and exports as prescribed shall continue to be dischar#ed by the EOU3EP.

contractin# of both production and production process may also be underta)en throu#h other EOU3EP.0Contra!tin" The EOU3EP.contract up to @'( of the production for %ob wor) in 1T2 with the permission of 2ssistant Commissioner of Customs$ Sub.3E-TP3STP unit will be allowed -owe"er$ it would be eli#ible to be considered as export by the recipient unit only when the transferred #oods under#o further processin#3manufacture *b+ !oods imported by EOU3EP.3E-TP3STP units shall be in a custom bonded premises$ unless otherwise specifically exempted from physical bondin# eriod o+ Bondin" The bondin# period for units under the EOU3E-TP3STP Schemes shall be @ years This period may be extended to &' years in case of products re/uirin# si#nificant capital in"estment and infrastructural support On completion of the bondin# period$ it shall be open to the unit to continue under the scheme or opt out of the scheme If no intimation in .contract part of their production process in 1T2$ which may also in"ol"e chan#e of form or nature of the #oods$ throu#h %ob wor) by units in the 1T2 These units may also sub.3E-TP3STP units on the basis of records maintained in the unit Con2ersion Existin# 1T2 units$ may also apply for con"ersion into an EOU3E-TP3STP but no concession in duties and taxes would be a"ailable under the scheme for plant$ machinery and e/uipment already installed Existin# 1T2 units ha"in# an export commitment under the EPC! scheme$ may also apply for con"ersion into an EOU3E-TP3STP unit On such a con"ersion$ the export commitment under the EPC! scheme will be subsumed in its exports as an EOU3E-TP3STP unit The existin# E-TP3STP units may also apply for con"ersion3mer#er to EOU unit and "ice."ersa In such cases the units will continue to remain in bond and a"ail the permissible exemption in duties and taxes as applicable under the rele"ant scheme Bondin" The entire operations of an EOU3EP.3E-TP3STP units may$ on the basis of annual permission from the 2ssistant Commissioner of Customs$ sub.H .3E-TP3STP unit may be transferred or #i"en on loan to another EOU3EP.3E-TP3STP unit which shall be duly accounted for$ but not counted towards dischar#e of export performance S/.3E-TP3STP unit to another EOU3EP.*c+ 2ll export entitlements$ includin# Special Import 6icence and reco#nition as Export -ouse3Tradin# -ouse3Star Tradin# -ouse3Super Star Tradin# -ouse would accrue to the exporter in whose name forei#n exchan#e earnin#s are realiGed Inter0Unit Trans+er *a+ Transfer of manufactured #oods from one EOU3EP.

bondin# 2n EOU3EP.bond on payment of duty on capital #oods under the pre"ailin# EPC! Schemes$ sub%ect to the unit satisfyin# the eli#ibility criteria and standard conditions ri2ate Bonded 3are(o/ses Pri"ate bonded warehouses may be set up in EP. units Items importable in accordance with this Policy may also be imported and sold in the 1T2 sub%ect to compliance with the Policy for such clearance in the 1T2 and on payment of applicable duties at the time of effectin# such sales on the basis of records maintained in the unit <e.this re#ard is recei"ed from the unit within a period of six months of expiry of the bondin# period$ the 1e"elopment Commissioner will ta)e action$ suo moto$ to debond the unit 5here the units opts to continue$ the 1e"elopment Commissioner concerned will extend the bondin# period and determine the 90EP and EP to be achie"ed durin# the extended period De0Bondin" Sub%ect to the appro"al of the 1e"elopment Commissioner$ EOU3EP.bondin# shall be sub%ect to penalty$ if any that may be imposed and payment of duties of Customs and Excise applicable at the time of de.pac)in#3labellin#3minor processin#= Imports may be permitted for re.bonded Such de.s may import$ pac)in#$ labellin# and such other material without payment of duty in connection with their operations ri2ate Bonded 3are(o/se ( B3&) 2 P45. bondin# shall be sub%ect to the industrial policy in force at the time of de.s for the purposes enumerated hereinafter Settin# up of pri"ate bonded warehouse for diamond$ #em and %ewellery items shall be #o"erned by pro"isions of chapter > of the Policy Imports$ stoc) and sale of #oods= Imports may be permitted to meet re/uirements of EOU3EP.bondin# 1e.3aste.3E-TP3STP units may be de.export with or with a re.3E-TP3STP unit may also be permitted by the 1e"elopment Commissioner$ as a one time option$ to de.export in freely con"ertible forei#n currency Procurement of #oods from domestic tariff area for exports= !oods may be procured from domestic tariff area without payment of excise duty for exports Such #oods shall be physically exported or supplied a#ainst duty free licence Pri"ate bonded warehouses set up in EP.> .5arehouse shall be re/uired to achie"e a minimum turno"er of US I & million or its e/ui"alent in rupees o"er a period of @ years Disposa% o+ S!rap.Re-nants Scrap3waste3remnants arisin# out of production process or in connection therewith may also be sold or disposed of in the 1T2 on payment of applicable duties -owe"er$ there shall be no duties3taxes on such scrap3waste3remnants in case the same are destroyed with the permission of the Custom authority .

3E-TP3STP unit to another such unit would also be treated as import Re"istration0C/-0Me-. concerned Green Cards +or EOUs !reen card will be issued by the 1C concerned to EOU3EP.units and P45.3E-TP3STP unit is unable$ for "alid reasons$ to utilise the #oods$ it may re.8 . units and P45. concerned I-porter0Exporter Code No4 Importer.in EP.Re-nants *a+ 5aste3scrap3remnants arisin# out of production process and in connection therewith$ up to @( 0O4 "alue of exports$ may be sold in the 1T2$ on the basis of records maintained by the units *b+ Percenta#e of waste3scrap3remnants abo"e @( shall be appro"ed by 1C in accordance with the norms pro"ided *c+ EP. units3P45.ers(ip Certi+i!ate <e#isterin# authority for EOU3EP.Exporter Code 9umber for EOU3EP. shall be the 1C of the EP.Disposa% o+ S!rap. automatically Mis!e%%aneo/s Conditions *i+ Proposals in"ol"in# in"estment of more than <s ?'' crores are to be considered by the Special 4oard of 2ppro"als in the Ministry of Commerce Such applications will be forwarded by the 1C to the Ministry of Commerce for processin# *ii+ 0orei#n in"estment shall be #o"erned by the #uidelines of the 1epartment of Industrial Policy and Promotion on the sub%ect .3E-TP3STP units3P45.s shall be allowed by the 1C of EP.export or dispose them in the 1T2 on payment of applicable duties and submission of import licence$ by the 1T2 unit$ where"er applicable Supply from one EOU3EP.3aste.3EOU units may clear scrap3waste3remnants arisin# out of sub.in EP.contractin# of production3production process from the %ob wor)ersB premises$ on payment of applicable duties$ or brin# it bac) to its own premises *d+ Sale of waste3scrap3remnants shall be sub%ect to payment of applicable duties Sa%e o+ Un/ti%ised Materia%s In case an EOU3EP.in EP.

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