EOU notes
EOU Approval, Administration and Net Foreign Exchange
EOUs are approved and monitored through the Development Commissioner system, and must achieve positive Net Foreign Exchange earnings.
Who approves an EOU?
Applications are processed through the Development Commissioner (DC) of the SEZ having jurisdiction. Cases meeting specified norms are approved at that level; others go to the Board of Approval. The DC office also handles monitoring of EOUs in its area.
Net Foreign Exchange: the core obligation
NFE is broadly the value of exports minus the value of imported inputs, capital goods and other foreign-exchange outflows, as defined in the policy. The obligation keeps the scheme focused on genuine export earnings rather than duty-free domestic production.
Bonded premises and customs control
EOUs operate under customs bonding: inputs procured without duty are accounted for and used for authorised operations. Removing goods to the DTA without following the rules attracts duty and penalties.
Study Library and practice
- Study Library: trade deficit and the external sector
- SEZ explainer: Act 2005, DTA and customs
- EOU vs SEZ quick explainer
- Take the EOU practice quiz
- Daily current-affairs quiz
Official references
FAQs
What is NFE?
Net Foreign Exchange earnings — exports minus foreign-exchange outflows such as imported inputs and capital goods, as defined in the policy. EOUs must be positive NFE earners.
Who supervises EOUs?
The jurisdictional Development Commissioner, with the Board of Approval deciding cases outside delegated norms.