Export Oriented Unit (EOU) Scheme

A flagship initiative under the Foreign Trade Policy to promote export-based manufacturing and services with duty and tax benefits.

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Overview

The Export Oriented Unit (EOU) Scheme is a key initiative under the Foreign Trade Policy (FTP) of India that enables eligible manufacturing or service units to operate with significant duty and tax benefits, provided they export 100% of their production (with certain DTA sale relaxations).

It is launched by the Ministry of Commerce & Industry, Government of India and operated via the Development Commissioners (DCs) of Special Economic Zones (SEZs).

Objectives

  • Promote exports of goods and services
  • Enhance foreign exchange earnings
  • Encourage export-based manufacturing and employment
  • Offer tax exemptions and regulatory relaxations to globally competitive industries

Eligibility Criteria

General Eligibility

  • Engaged in manufacturing, processing, assembling, packaging, or service export activities
  • Proposes to export 100% of production/services
  • Located outside SEZs and not availing SEZ benefits

Entity Types

  • Company
  • Partnership / LLP
  • Proprietorship (in some cases)
  • Registered Society / Trust (for R&D)

License Types

  • Manufacturing units (textiles, electronics, pharma, auto components, etc.)
  • IT/ITES service providers
  • Biotech & pharma R&D
  • Gems & jewellery
  • Agriculture / floriculture units
  • Engineering goods
  • Renewable energy components

Documents Required

Entity Details

  • MOA, AOA / Partnership Deed
  • PAN
  • GST
  • IEC

Project Profile

  • Detailed Project Report (DPR) with cost, export projection, forex inflow

Promoter KYC

  • PAN
  • Aadhaar
  • Net worth certificate (CA certified)

Infrastructure

  • Lease Deed or Ownership Proof
  • Site Plan
  • Factory Layout

Bank & Finance

  • Bank Account
  • Project Funding Details
  • NOC from lender (if mortgaged)

EOU Application

  • Form prescribed by Development Commissioner
  • Affidavit / Declaration

Other Attachments

  • Power of Attorney
  • Board Resolution
  • Pollution clearance (if applicable)

Additional Certifications

  • Letter of Permission (LoP) – license to operate as EOU
  • Legal Undertaking (LU) with DC-SEZ for export obligation
  • Annexure Forms for duty-free procurement/imports
  • Annual Performance Return (APR)
  • GST LUT / Refund Forms for zero-rated exports