EOU/EHTP/STP & BTP SCHEMES
Units undertaking to export their entire production of goods and services (except permissible sales in the DTA), may be set up under the Export Oriented Unit (EOU) Scheme, Electronic Hardware Technology Park (EHTP) Scheme or Software Technology Park (STP) Scheme for manufacture of goods, including repair, re-making, reconditioning, re-engineering, and rendering of services. No trading units are however permitted.
An EOU / EHTP / STP unit may export all goods and services except items that are prohibited in ITC (HS). Export of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) shall be subject to fulfillment of the conditions indicated in the ITC (HS).
All imports (Capital Goods and Raw material) in an EOU are duty free. An EOU / EHTP / STP unit may import without payment of duty, all types of goods, including capital goods, as defined in the Policy, required by it for its activities or in connection therewith, provided they are not prohibited items of imports in the ITC (HS). The units are also permitted to import goods required for the approved activity, including capital goods, free of cost or on loan from clients.
Supplies to EOU etc. from DTA (Domestic Tariff Area) are considered deemed exports. This gives rise to certain interesting benefits to the suppliers to the EOUs etc. They can get the Advance Authorization for their imports for the purpose of supplies to EOUs. They can also get the drawbacks for their supplies. This benefit can also be claimed by the EOU after required documentation.