Guidelines for Conversion of DTA Unit into (EOU)/ EHTP/ (STP)/BTP
DGFT has prescribed the following procedure for conversion of Domestic Tariff Area (DTA) Unit into Export Oriented Unit (EOU)/ Electronic Hardware Technology Park (EHTP)/ Software Technology Park (STP)/ Bio-Technology Park (BTP) Unit.
1.Apply to concerned Development Commissioner (DC) in a manner as applicable to new units.
2. After getting approval of the project and obtaining Letter of Permission (LOP) from DC, execute Legal Undertaking (LUT) in prescribed format with DC.
3. Thereafter, apply for private bonded licence to concerned Customs/ Central Excise authority with execution of B-17 Bond.
WHERE ADVANCE AUTHORISATION IS PENDING REDEMPTION
If the unit is having outstanding export commitment under advance authorization scheme, following procedure before execution of Bond with customs and Central Excise Authority need to be adopted :
1. Approach concerned Customs & Central Excise Authority and obtain certificate showing physical verification of unutilized material held in stock against all advance authorizations (not yet redeemed) and such raw material as intended to be carried forward to EOU;
2. Approach Regional Authority along with a copy of the following documents:
a. LOP/LUT executed with DC,
b. Certificate of stock verification obtained from Customs/Central Excise
c. LUT with RA as annexed.
d. Details of imports/exports against all advance authorizations and utilized/ balance materials as per prescribed consumption register.
3. RA will calculate unfulfilled export obligation, as per prevailing norms. In case norms are not fixed, R.A. will take up with Norms Committee for its fixation. Such export performance would only be taken into account, as within valid export obligation period of Advance Authorization ;
4. R.A. will thereafter communicate "No objection" to DC and Central Excuse Authority with endorsement to applicant unit.
5. The unit will approach the Customs/Central Excise Authority for execution of B-17 bond ;
6. Raw material obtained under Advance Authorization, which is having valid export obligation period can only be carried over;
7. RA would accordingly process case for discharge of obligation and redemption of bond LUT executed against all the advance authorizations issued already.
EPCG Authorization:
In case there is an outstanding export commitment under EPCG Scheme, it will be added to future export obligation by adding value of capital goods to the imported capital goods value of the EOU and all previous obligations under EPCG would cease to exist on such inclusion.
DGFT Public Notice No 74 (RE-2007)/2004-2009, Dated: October 24, 2007 .