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Export Oriented Units (EOUs) have been defined under the Foreign Trade Policy (FTP) as those units undertaking to export their entire production of goods and services [except permissible sales in Domestic Tariff Area (DTA) for manufacture of goods, including repair, re-making, reconditioning, re-engineering, rendering
Eligibility Criteria for EOU For the status of EOU, the project must have a minimum investment of Rs. 1 crore in plant and machinery. This condition does not apply for software technology parts, electronics hardware technology parks and biotechnology parks.
How will calculate the NFE of an EOU? B = Value of Imported Capital goods, raw materials and outgo of foreign exchange by way of Dividends, royalty, selling commission, foreign travel etc. NFE is calculated on a simple formulae i.e. Exports (FOB value of all exports) - Imports (CIF value of all imports) 0.
For establishment of an EOU in India, an entrepreneur or industrialist requires permission and certifications from the local administration (the regional Development Commissioner), the concerned State Government, the Ministry of Commerce and Industry of India, the Jurisdictional Commissioner of the Customs/Central
An EOU can purchase raw material or capital goods duty-free either through imports or domestic sources. It is also eligible for domestic reimbursement of GST on raw materials or capital goods. It can claim reimbursement of duty paid on fuels obtained from domestic oil companies.
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Export-oriented units are units undertaking to export their entire production of goods. EOUs can engage in manufacturing, services, development of software, repair, remaking, reconditioning, re-engineering including making of gold/silver/platinum jewellery and articles.

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