EOU [Export Oriented Units] scheme which was established in 1981, matches with the SEZ scheme. It espouses the same product rules but provides a wide range of choice in locations regarding factors such as ports of export, raw materials, locality facilities, accessibility of technological skills, presence of an industrial base and requirement for a wide land area for the project. There are 1924 units in effect under EOU scheme, as of 2005.
Rules & Procedure of EOU Registration in India
EOU registration in India has to be done under certain EOU rules and EOU procedure. There are various companies that help in obtaining EOU registration.
EOU registration procedure is as follows:
The project report has to be proposed to the Development Commissioner Officer together with Application in triplicate as stated by Appendix 14 I-A, wherein the report should have all Commercial & Technical feasibility.
Crossed DD worth of Rs. 5,000/- has to be drawn in favor of "Pay & A/C Officer, Ministry of Commerce & Industry, Dept. of Commerce, payable at Central Bank of India, Udyog Bhavan, New Delhi.
The investment has to be Rs. 1 crore in Plant & Machinery and Building. [This does not apply to already existing units and units present in Handicrafts/ STP/EHTP/Floriculture/ Agriculture/Animal Husbandry/Aquaculture/ Information Technology/ services and other similar sectors as determined by BOA].
The project report submitted for EOU registration has to have the following :
- Profile of directors/promoters/proprietor/partners
- Name, address and experience of the directors/partners/proprietor
- Manufacturing procedure and flow chat and description
- Finance means/source of finance/project cost
- Trade in/marketing tie-up preparations
- Estimated P/L [Profit & Loss Account] and B/S [Balance Sheet] for subsequent 5 years
- In case of transfer of DTA unit to EOU P/L and B/S for previous 3 years
- Present-day and future activity of the applicant
- Enduring email and website of the firm/company and Digital Signature of authorized party
- Estimated list of imported/native capital goods
- Estimated list of imported/native raw material
- Machinery list and raw material list that is installed or in stock if there are existing units
After receiving the application for EOU registration, along with the above mentioned documents, the Customs Authorities will confer registration to EOU unit within 5 days of the registration application receipt.