EOU Scheme

100% EOUs in the jurisdiction of DC, SEEPZ-SEZ (Maharashtra, Goa and Union Territory of Dadra Nagar Haveli, Daman & Diu):

The EOU scheme was introduced in the year 1980 vide Ministry of Commerce resolution dated 31st December 1980. The purpose of the scheme was basically to boost exports by creating additional production capacity, earn Foreign Exchange to the country, transfer of latest technology, stimulate direct investment and to generate additional employment.

The Export Oriented Unit (EOU) Scheme, remains in the forefront of country's export production schemes. The scheme has witnessed many changes over the last twenty-nine years in the context of ever changing economic realities. However, the basic premise remains the same. This premise is that the exporters are treated as a special class and given the required tariff, non-tariff and policy support to facilitate their export efforts. Thus, today the EOU Scheme has emerged as a dynamic policy initiative facilitating the exporting community in the task of increased exports.

Earlier, the scheme was basically for manufacturing sector with certain minimum value addition in terms of export earnings. However presently there is no value addition requirement, instead the EOU shall be a positive net Foreign Exchange earner except for sector specific provisions contained in Appendix-14-l-C of HBP Volume-I of Foreign Trade Policy 2009-2014 where a minimum value addition is required in terms of Para 4.A.2.1 of H.B.P. in respect of Gem & Jewellery Products.

The EOU scheme is presently governed by Chapter 6 of the Foreign Trade Policy 2009-14, Chapter 6 of the Handbook of Procedures and Appendix 14 I A to Appendix 14 I N.

A 100 per cent export-oriented unit is an industrial unit offering for export its entire production, excluding the permitted levels of domestic tariff area sales for manufacture of goods, including repair, re-making, reconditioning, re-engineering and rendering of services. Trading units are not covered under this scheme.