EOUs – Removal to contract farmers – bank guarantee not required for units in existence for more than two years
As per Notification No. 22/2003 dated the 31st March, 2003, EOUs engaged in processing of agriculture products or production or manufacture or packaging of articles, are allowed to take out non duty paid goods to the fields and farms of contract farmers of the user industry for production or in connection therewith; and to bring back the produce to the user industry for exports, subject to certain conditions one of which is
++ the user industry shall be required to furnish a bank guarantee equal to the total duty foregone on the goods so transferred to the fields or farms of contract farmers;
Now this is amended to provide a bank guarantee by only those units which are in existence for less than two years
NOTIFICATION NO , Dated: January 15, 2007