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After a long waiting period, FTP 2015-2020 has been released with the new initiative “Make in India”. It provides a framework for increasing the export of goods and services as well as. 100% EOU has been set up for earning the foreign exchange, in this FTP, two new schemes has been introduced namely “Merchandise Exports from India Scheme” and “Services Exports from India Scheme”.

Below are few chapter wise selective changes for 100% EOU.

Chapter 1A:-

1.11Issue of e-IEC (Electronic-Importer Code)

DGFT has recently introduced the facility of issuing Importer Exporter Code in electronic from (e-IEC).

1.16 Facility of online filing of application

All the Regional Authorities of DGFT and extension counters have been networked with high speed internet. DGFT under the EDI initiatives has been provided the facility of online filing of application to obtain IEC and scrips.


2.06 Mandatory documents for export/import of goods from/into India.

(a) Mandatory documents required for export of goods from India:

1. Bill of lading/Airway Bill
2. Commercial Invoice cum Packing List
3. Shipping Bill/Bill of Export

(a) Mandatory documents required for import of goods into India:

1. Bill of lading/Airway Bill
2. Commercial Invoice cum Packing List
3. Shipping Bill/Bill of Export

2.49 Export of repaired Goods (Old Provision-2.37)

‘Goods or parts thereof, except restricted under ITC (HS), on being exported and found defective damaged or otherwise unfit for use may be imported for repair and subsequent re-export. Such goods shall be allowed clearance without an Authorization and in accordance with customs notification.


3.03 Merchandise Exports from India Scheme

Exports of notified goods/products, to notified markets as listed in Appendix 3B, shall be rewarded under MEIS. The basis of calculation of reward would be on realized FOB value of exports in free foreign exchange or on FOB value of exports as given in the Shipping Bills in free foreign exchange, whichever is less, unless otherwise specified.

3.07 Service Exports from India Scheme

Service Provider of notified services, located in India, shall be rewarded under SEIS, subject to conditions as may be notified.

3.20 Status Holder (Old Provision-3.10.2)

Status Category

Export Performance FOB/FOR (as converted) Value (in US $ million)

One Star Export House


Two Star Export House


Three Star Export House


Four Star Export House


Five Star Export House


Chapter-6 (Selective provision has been taken)

6.01 (d) Units shall also be permitted to import goods including capital goods required for approved activity, free of cost or on loan/lease from clients. (Old Provision-6.2 (b)

6.01(j) Procurement and export of spares/components upto 5% FOB value of exports, may be allowed to same consignee/buyer of the export article, subject to the condition that it shall not count for NFE and direct tax benefit. (Old Provision-6 (h)

6.08 (a) DTA sale of Finished Products/Rejects/Waste/Scrap/Remnants and By-products. (Old Provision-same)

6.11 (c) EOU shall be entitled to the following: (Old Provision-same)

1. CST Reimbursement
2. Excise Exemption
3. Reimbursement of duty paid on fuel.

6.13 Inter Unit Transfer (Old Provision-same)

6.13(b) Capital goods may be transferred or given on loan basis to other EOU/EHTP/STP/BTP/SEZ units with prior intimation to concerned DC and Customs authorities

6.13(d) New clause

In respect of a group of EOUs/EHTP/STP/BTP/ Units which source inputs centrally in order to obtain bulk discount and /or reduce cost of transportation and other logistics cost and/or to maintain effective supply chain, inter unit transfer of goods and services may be permitted on a case to case basis by the UAC. In case inputs so sourced are imported and then transferred to another unit, then value of the goods so transferred shall be taken as inflow for the unit transferring these goods and as outflow for the unit receiving these goods, for the purpose of calculation of NFE.

6.14 (a) Sub-Contracting (Old Provision-same)

EOU units may on the basis of annual permission from Customs authorities, sub contract production processes to DTA through job work.

6.15 Sale of Unutilized Material (Old Provision-same)

6.17 (C) Goods or part thereof, on being imported/indigenously procured and found defective, may be returned and replacement obtained or destroyed. (Old Provision-same)

6.18 Exits from EOU Scheme

Thanks & Regards,
CA Sandeep Kumar


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CA Sandeep Kumar
Category Others   Report

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