100% EOUs in the jurisdiction of DC, SEEPZ-SEZ

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 EOU scheme is complementary to the EPZ scheme (now SEZ Scheme), except that it is widely dispersed in location, unlike SEZs, which are set up at specific locations. 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-14-1-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 and 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. EOU means an export oriented unit for which an LOP (letter of permission) has been issued by the Development Commissioner. The work relating to 100% EOUs was transferred from the organization of Export Commissioner to the Development Commissioners of EPZ (now SEZ) during 1992-1993. The Export Oriented Units located in the State of Maharashtra, Goa and Union Territory of Dadra, N. Haveli, Daman & Diu are under the jurisdiction of Development Commissioner, SEEPZ-SEZ. The Unit Approval Committee headed by the Development Commissioner, SEEPZ-SEZ grants approval for setting up of projects under EOUs scheme. All post approval permissions are granted by the Development Commissioner.

There are about 500 EOUs operating under the jurisdiction of DC SEEPZ-SEZ. The aggregate Export of these EOUs during the year 2008-09 stood at Rs. 14000.00 crores approx. The Export Oriented Units located in the State of Maharashtra, Goa and Union Territory of Dadra, N. Haveli, Daman & Diu provided employment to over 50000 persons.