The EOU (Export Oriented Units) program, established in 1981, is similar to the SEZ program. It follows the same product rules but provides a wider range of locations based on factors like export ports, raw material availability, local facilities, access to tech skills, industry presence, & large land area needs for projects. By 2005, there were 1,924 units operating under the EOU program.
Rules & Procedure of EOU Registration in India
Certain EOU regulations and EOU procedures must be followed when registering an EOU in India. Numerous businesses offer assistance with registering an EOU.
EOU registration procedure is as follows:
- As per Appendix 14 I-A, the project report must be submitted in triplicate to the Development Commissioner Officer together with the application. The report must include information on both the commercial and technical viability.
- A crossed demand draft (DD) for Rs. 5,000/-must be made payable to the Central Bank of India, Udyog Bhavan, New Delhi, and made out to "Pay & A/C Officer, Ministry of Commerce & Industry, Dept. of Commerce."
- The building and plant and machinery investments must total one crore rupees. [Units already in existence as well as those found in Handicrafts, STP, EHTP, Floriculture, Agriculture, Animal Husbandry, Aquaculture, Information Technology, and other sectors as determined by BOA] are not covered by this.
- The following must be included in the project report that is submitted for EOU registration: Directors, promoters, proprietors, and partners' profiles
- The director, partner, or proprietor's name, address, and experience Manufacturing process and flow conversation and synopsis
- Finance sources, means, and project costs
- Preparations for trade-in/marketing tie-ups
- Estimated balance sheet (B/S) and profit and loss account (P/L) over the next five years
- If a DTA unit has been transferred to EOU P/L and B/S for the preceding three years
- Current and prospective endeavors of the candidate
- enduring emails and the company's website and The authorized party's digital signature
- Estimated inventory of native and imported capital goods
- An estimated list of local and imported raw materials
- If there are already units, a list of the installed machinery and raw materials that are on hand
- Within five days of the registration application's receipt, the Customs Authorities will grant EOU unit registration after receiving the application and the aforementioned documentation.
How SKMC Global can help ?
Under Indian trade and economic policy, Export-Oriented Units (EOUs)—enterprises established specifically to manufacture items for export—are eligible for a number of incentives and exemptions. There are various legal requirements and compliance procedures that must be followed in order to register as an EOU. A significant part of organizing and overseeing this registration procedure is played by SKMC Global. Here's how we get involved:
Eligibility Assessment:
Examine if the company satisfies the conditions for EOU registration, including meeting specific investment and operational standards and having an export-oriented business model. Perform a feasibility analysis to ascertain whether the company's business goals and export plans are in line with registering as an EOU.
Application Preparation:
Help compile and prepare the paperwork required for the EOU registration process, such as information on the company's export goals, infrastructure, and business plan. Assist in filling up and submitting the EOU registration application, making sure that all necessary information is supplied correctly.
Regulatory Compliance:
Render advice on adhering to pertinent rules, such as the Customs Act, the Foreign Trade Policy (FTP), and other legislation that may be relevant and that regulate EOUs. Make sure that the Directorate General of Foreign Trade (DGFT) and other regulatory organizations' requirements are met, as well as all registration procedures are completed correctly.
Incentives and Benefits:
Provide guidance on the several incentives and perks that are accessible to EOUs, including tax breaks, duty exemptions, and other concessions connected to exports. Assist the business in realizing and optimizing these advantages to raise profitability and competitiveness.
Liaison with Authorities:
Serve as the company's point of contact with the DGFT, Customs, and other pertinent authorities. Oversee correspondence with authorities to guarantee prompt registration application processing and answer any questions or extra needs.
Compliance Management:
Help ensure that all EOU regulations are followed moving forward, including reporting requirements, export duties, and operational guidelines. Assemble and oversee the execution of audits or inspections pertaining to EOU compliance, guaranteeing that all records and paperwork are in order.
Customs and Taxation:
Lead the business through the import and export documentation and procedures as well as the customs processes and paperwork needed for EOUs. Help EOUs get and manage tax incentives and exemptions, including sales tax, excise tax, and customs duty exemptions.
Operational Setup:
Provide guidance on establishing the facilities and infrastructure needed for EOU operations, including ensuring that all operating and export regulations are met. Assist in the development and execution of effective supply chain management procedures to bolster export-focused endeavors.
Record Keeping:
Help keep accurate records of inventories, export transactions, and compliance-related paperwork needed for EOU operations. As part of EOU compliance, prepare and submit the necessary reports and returns to the appropriate regulatory bodies.
Regulatory Updates:
Inform the business of any updates or modifications to EOU-related rules, including any changes to policies or practices. Provide guidance on how to maintain compliance while adjusting to changes in regulations.
Crisis Management:
Assist in handling and settling any conflicts or problems pertaining to EOU compliance or operations. Create backup plans in case the operations of the EOU encounter difficulties or interruptions.
Businesses can better handle the challenges of EOU registration & operations by leveraging the expertise of service providers. EOU certificate ensures compliance with regulations, helps maximize the benefits of being an EOU, and supports achieving business goals, improving export outcomes, and maintaining smooth operations.