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Q:

Procedure for Registration under the Scheme

A: STP & EHTP Schemes/Procedure for registration
Q: Post Approval Process
A: STP & EHTP Schemes/Post Approval Process
Q: What is the gestation period allowed for starting commercial production? / Validity period of LoP?
A: Normally one year. If commercial production not commenced within three years the Letter of Permission [LoP] automatically lapses as per the policy. Only under special circumstances, extension of time beyond three years is permissible.
Q: Conditions in the LoP?
A: Execute the Legal Agreement in the prescribed format
Implementation of the project within three years from the date of LoP, failing which the   approval automatically lapses
Achieve NFEP & EP / Export Obligation as per the Policy
EoU activity should take place in the Custom Bonded Premises
Q: Mandatory/Statutory Requirements to be fulfilled
A: Premises to be custom bonded
Export Contracts/ Purchase Orders etc.                                                                           Timely Submission of Softex Forms, Invoices, Supporting documents and obtain Export Certification from STPI
Import & Central Excise Exemption Certification, if any
Submission of Monthly, Quarterly, Tentative Performance Report & Audited Annual Report in the prescribed format (Formats available is web site)
Achieve the NFEP & EP / Export Obligation every year
Q: If stipulated export obligation not met ?
A: In the event of failure to fulfil NFEP & EP / Export Obligation, the case shall be referred to JDGFT and the unit will be liable to pay:
penalty under the Foreign Trade (D&R) Act 1992
the duties of Customs & Central Excise and interest as stipulated in the relevant
Customs/central excise notification the liquidated damages
Q: Is Importer/Exporter Code (IEC) a must for Imports & Exports?
A: YES
Q: How/where to obtain IE Code
A: To be obtained from DGFT Office (Directorate General of Foreign Trade)                        (Para 2.9 to 2.9.5 of Hand Book of Procedures Vol. I)
Q: Is IEC valid for all branches/divisions of the company
A: YES
An IEC No. allotted is valid for all the branches/division/factories as indicated on the IE Code ie the new branches have to be updated in the IE code by DGFT
(Para 2.9.2 of Hand Book of Procedures Vol. I)
Q: Is Custom Bonding Compulsory & Who is the exempting authority?
A: YES
The entire EoU Operations of the unit shall be carried out in a custom bonded premises, unless otherwise specifically exempted from physically bonding. The DGFT is the competent authority for granting exemption from any of the provisions contained in the EXIM Policy/Procedures
Q: What is the purpose of Custom Bonding?
A: To enable the unit to procure goods and equipment duty free and to carry on the manufacture/development activity in the custom bonded premises and to afford compliance with the condition stipulated in the following notifications:

  Customs Notification No. 138/140 dt. 22/10/1991 (as the case may be) and as amended    from time to time

  Central Excise Notification 1/95-C.E dt. 4/1/95 and as amended from time to time

  EXIM Policy / Foreign Trade Policy  & Hand Book of Procedures Vol. I as amended from time to time.
Q: Procedure for custom bonding
A: Formats & Procedure/General/B-17bond
Q: Whether Imports made prior to becoming STP unit eligible for duty free clearance?
A: Goods already imported before the issue LOP are eligible for duty free clearance provided duty has not been paid and the goods have not been cleared
Q: Items permitted for procurement duty free?
A: (Para 6.2 of the Foreign Trade Policy and  Para 6.6.1of Hand Book of Procedures Vol. I) 
Q: Conditions governing duty free import?
A: Procedure for Import 
Q: Is procurement from Public/Private bonded warehouse permitted?
A: YES (Para 6.2 of the Foreign Trade Policy) 
Q: Is High Sea Sales permitted?
A: YES (Para 2.24 of the EXIM Policy)
[Note: When any consignment of goods ordered for import by an Indian Importer are in transit on board aircraft/ship such goods can be sold by the Importer to another buyer in India. Such sales are called sale on Highsea]
Q: Is Import under lease financing permissible?
A: YES (Para 6.4 of the Foreign Trade Policy and  Para 6.9 of Hand Book of Procedures Vol. I) 
Q: Is Import/Export through courier permissible?
A: YES
Formats & Procedure/Import/Import through Courier Mode
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Page Last Updated on : Monday, 14 March 2016   17:34:30