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What is the difference in EOU and SEZ?

Updated: 9/20/2023
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ThahirBasha

Lvl 1
12y ago

Best Answer

SEZ units can be set only in designated SEZ's (Currently 12 operating SEZ's)

EOU can be set anywhere in India

SEZ units has to be new unit. No Conversion is allowed.

Running DTA unit can be converted into EOU

DTA sales allowed on payment of full Duties

DTA sales up to 50% of FOB Value Of Exports permitted on Conncessional Rate of Duty

Trading unit are permitted in SEZ

Trading units not permitted in EOU's

100% Income Tax exemption

for 20 years

100% Income tax Exemption

up to 31/03/2009

No routine examination of Export Import Cargo by Customs

Examination of Export Import Cargo By Customs

Import on self-declaration basis

For import of CG, attestation of List by DC required

Export Proceeds to be realized Within 12 months

Export Proceeds to be realized Within 6 months

Retention of 100% Export Earning in EEFC A/C

Retention of 70% Export Earning In EEFC A/C

Supplies made in the DTA not Counted towards Fulfillment of EP/ NEPF

Supplies made in the DTA counted towards Fulfillment of EP/NEPF

100% FDI in allowed automatically for Manufacturing SEZ Units

FIPB approval required as per sectoral guideline

Benefits of DEPB in lieu of DBK for supplies from DTA

Not Available for EOU

Duty Free material except CG to be Utilized over a period of 5 Years

Duty Free material except CG to be Utilized over a period of 2 Years

Exemption from Payment of Service Tax

No Exemption allowed

Off shore Banking (OBU) is

Permitted by RBI

OBU not permitted

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Q: What is the difference in EOU and SEZ?
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