BUSINESS
Special Economic Zones
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EOU Scheme of CSEZ
The EOU Scheme of CSEZ is responsible for the export-oriented activities taking place in the state of Kerala, especially in the Cochin district. In the first place, the manufacturing units are provided with certain facilities for export-related activities. The unit is provided with a location of their choice for conducting such export-oriented activity. The EOU Scheme of CSEZ is essentially crafted on the Special Economic Zone Scheme with certain modifications. The activity can be in the service and manufacturing sector. On the basis of the performances of the unit it will be a positive earner of the Net Foreign Exchange.
The EOU Scheme of CSEZ is under the Development Commissioner of the CSEZ, who also has the licensing authority for other 100% EOUs located in the regions like Kerala, Lakshwadeep, Karnataka, and Mahe.
Under the EOU Scheme of CSEZ the units responsible for exporting their overall production of goods and services are set up. There are also some other schemes like the Electronic Hardware Technology Park Scheme, Software Technology Park Scheme and Bio-Technology Park scheme aiding the manufacture of goods. These include re-making, repairing, re-engineering, reconditioning, and rendering of services. Under the EOU Scheme of CSEZ, however, trading units, are excluded.
There are certain features of the units operating under the EOU Scheme of CSEZ. Some of them are –
The EOU Scheme of CSEZ is under the Development Commissioner of the CSEZ, who also has the licensing authority for other 100% EOUs located in the regions like Kerala, Lakshwadeep, Karnataka, and Mahe.
Under the EOU Scheme of CSEZ the units responsible for exporting their overall production of goods and services are set up. There are also some other schemes like the Electronic Hardware Technology Park Scheme, Software Technology Park Scheme and Bio-Technology Park scheme aiding the manufacture of goods. These include re-making, repairing, re-engineering, reconditioning, and rendering of services. Under the EOU Scheme of CSEZ, however, trading units, are excluded.
There are certain features of the units operating under the EOU Scheme of CSEZ. Some of them are –
- The export-oriented unit is supposed to export all kinds of goods and services with the exclusion of items prohibited in the ITC (HS).
- For instance, Special Chemicals, Organisms, Materials, Equipment and Technologies are exported.
- The units under the EOU Scheme of CSEZ are liable to import and procure from the DTA or bonded warehouses in DTA, without paying duty.
Generally all types of goods as well as capital goods are imported as long as they are not forbidden import items in the ITC (HS). The units are also allowed to import goods at free of cost or on the basis of loan or lease taken from the clients. These imported goods by a unit are required to be in their actual user condition for full utilization in export production. - The units under the EOU Scheme of CSEZ are excluded from the State Trading regime.
- The units under the EOU Scheme of CSEZ may also import or procure without paying any duty on certain goods from DTA in order to create a central facility. This is mainly for the benefit of the software units that will use this for the export of software.
- The EOU units, except the service units, against repayment of State Credit are liable to export to Russian Federation in Indian Rupees.
- As per the provisions of the EOU Scheme of CSEZ procurement and export of spare parts till 1.5% of the FOB value of exports are permitted to the same buyer of the export article within the period of warranty.
- The EOU Scheme of CSEZ allows the subcontract production process to either Indian or foreign units and also against orders secured by other units subcontract capacities for export production.
