The Export Promotion Capital Goods scheme (EPCG) that allows import of capital goods at 10 per cent customs duty. EOU is export oriented unit.
export oriyentel unit
export promotion capital goods
An EOU means Export Only Units. An 100% EOU is a establishment which is indulged only in export activities. ie. it is not into manufacturing, importing etc.
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rules for credit
export oriented unit
Exports from an Export-Oriented Unit (EOU) to another EOU within India can be considered as deemed exports, not as regular physical exports (RPA exports). Deemed exports refer to transactions where goods supplied do not leave the country; instead, the benefit accrues to the recipient in India. This distinction is essential for understanding policies related to incentives, duties, and benefits.
an industrial unit which export its entire production of goods and services
EPCG, or Export Promotion Capital Goods Scheme, is an initiative by the Government of India that allows exporters to import capital goods at zero or reduced customs duty. This scheme aims to enhance the production capacity of Indian manufacturers and boost exports by providing them access to advanced technology and machinery. Under the EPCG scheme, exporters are required to fulfill specific export obligations within a stipulated time frame. It helps in promoting Indian goods in international markets by making production more efficient and cost-effective.
see para 8.2 b of deemed exports foreign trade policy
CT 2 is used to procure excisable goods without payment of duty under the procedure of export warehousing. further CT1 is used to procure excisable goods witho9ut payment of duty under export procedure CT3 is issued by the EOU officials and as like CT2.
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