PortMatrix

Export Goods Manufacturing Hub

Export Oriented Unit (EOU) Registration Support

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What an EOU is

An Export Oriented Unit (EOU) is a business unit approved by the Government of India that undertakes to export its entire production of goods or services, except for permitted sales in the Domestic Tariff Area (DTA).

How PORTMATRIX helps

PORTMATRIX supports in the registration process of EOUs.

Key objectives

The EOU scheme aims to promote exports from India, earn foreign exchange, generate employment, encourage investment and technology development, and enhance India's global trade competitiveness.

Eligible activities

EOUs can be established for:

  • Manufacturing
  • Service exports
  • Software development
  • Repair, reconditioning, and re-engineering
  • Gems & jewellery
  • Agriculture and agro-processing
  • Biotechnology
  • Aquaculture, poultry, horticulture, floriculture, etc.

Major benefits of an EOU

  • Duty-free import of raw materials and capital goods
  • Duty-free procurement from domestic suppliers
  • GST-related benefits and refunds as applicable
  • Faster customs clearances
  • 100% FDI permitted in many sectors
  • Can be established anywhere in India (unlike SEZs, which are location-specific)

Basic eligibility

  1. Primarily Export-Oriented operations
  2. Positive Net Foreign Exchange (NFE) earnings over the prescribed period
  3. Generally, minimum investment of ₹1 crore in plant and machinery (with exemptions for sectors such as IT, biotechnology, handicrafts, and agriculture)
  4. Trading activities are generally not permitted under the EOU scheme.

EOU approval process

  1. Incorporate the business entity.
  2. Obtain PAN, GST, and IEC.
  3. Apply through the Development Commissioner.
  4. Obtain Letter of Permission (LoP).
  5. Execute customs bonding (B-17 Bond).
  6. Start operations and maintain export obligations and compliance requirements.

Frequently asked questions

What is an Export Oriented Unit (EOU)?
An EOU is a business unit approved by the Government of India that undertakes to export its entire production of goods or services, except for permitted sales in the Domestic Tariff Area (DTA).
What activities can an EOU be established for?
Manufacturing, service exports, software development, repair, reconditioning and re-engineering, gems & jewellery, agriculture and agro-processing, biotechnology, and aquaculture, poultry, horticulture, floriculture, etc.
What is the basic eligibility for an EOU?
Primarily export-oriented operations; positive Net Foreign Exchange (NFE) earnings over the prescribed period; and, generally, a minimum investment of ₹1 crore in plant and machinery, with exemptions for sectors such as IT, biotechnology, handicrafts, and agriculture.
What are the steps to get EOU approval?
Incorporate the business entity; obtain PAN, GST, and IEC; apply through the Development Commissioner; obtain the Letter of Permission (LoP); execute customs bonding (B-17 Bond); then start operations and maintain export obligations and compliance requirements.
Can an EOU be set up anywhere in India, and is trading allowed?
An EOU can be established anywhere in India, unlike SEZs, which are location-specific. Trading activities are generally not permitted under the EOU scheme.

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