About this scheme
Export Oriented Unit (EOU) scheme: a 100% export-oriented unit operating under customs bond. Duty-free import of capital goods, raw materials, and consumables. Income tax holiday on export profits.
What you get
- 0% customs duty on imports for production
- 0% IGST on imports + indigenous procurement
- Income tax holiday on export profits (subject to current IT Act)
- Excise duty exemption on indigenous procurement
- Limited DTA sales (up to 50% of FOB exports) allowed
- Single-window approval via DGFT
Who qualifies
Manufacturing units committing to 100% export production (with limited DTA sale concession). LoP issued by EOU Cell. Common for textiles, gems & jewellery, electronics, pharma.
Industries (NIC divisions)
Food processingTextilesApparelLeatherPaperChemicalsPharmaPlastics / rubberFabricated metalsElectrical equipmentMachinery
Business types
Private LimitedLLPsOne Person CompaniesPublic Limited
Available across India (central scheme).
How to apply
- 1Submit LoP application to EOU Cell
- 2Selection + LoP issuance (60-90 days)
- 3Set up bonded warehouse
- 4Customs bond execution
- 5Start operations + maintain Net FE
- 6Annual performance reporting
Key terms and conditions
- Net Foreign Exchange (NFE) positive over 5-year block
- 50% DTA sales cap (with applicable duties)
- Customs bond + bank guarantee for capital goods
- Annual reporting + audit
What disqualifies you
- Service-only EOUs limited to specific categories
- NFE negative leads to duty recovery
- Exit requires de-bonding with applicable duties
Documents typically required
- Letter of Permission (LoP)
- EOU bond
- 5-year FE commitment
- DPR
The content above is compiled from public information published by the scheme authority. Eligibility, benefits, and procedures are subject to change. Confirm details directly with the official portal before applying. BharatSeal does not process scheme applications.