Exit from EOU Scheme - de-bonding under Advance Authorisation permitted subject to positive NFE
As per Para 6.18 (g) of the Foreign Trade Policy, as amended, with effect from 19.4.2007,
(g) An EOU / EHTP / STP / BTP Unit may also be permitted by Development Commissioner to exit under Advance Authorization as a one time option. This will be subject to fulfillment of positive NFE criteria.
To give effect to this, the Revenue Ministry has amended the excise Notification No. 22/2003 and the Customs Notification No. 55/2003 to add a new proviso that in a case of exit by a user industry where positive NFE criteria is fulfilled in terms of Para 6.18 (g) of Foreign Trade Policy, such clearance or de-bonding of goods shall be allowed under Advance Authorization as one time option on payment of applicable duty.
This, in effect, means that a unit that has fulfilled the positive NFE Criterion can be permitted by the Development commissioner to exit under the Advance Authorisation Scheme as a one time measure and from 6.6.2007 Customs and Central Excise departments have no objection. As is well known, the policy becomes effective only when and if the Revenue Ministry decides to give it effect.
Notification No. , and , Dated June 6, 2007