Can a unit under Special Economic Zone (SEZ) also apply for EOU status?

No. Units located within SEZ boundaries are governed by SEZ rules and cannot simultaneously hold EOU status. However, units in Free Trade and Warehousing Zones (FTWZ) or operating outside SEZ premises may apply for EOU Approval. SEZ units enjoy similar duty exemptions under SEZ Act 2005, which is a parallel regime to EOU.

What is the minimum NFE commitment required, and what happens if it is not achieved?

NFE commitment varies by sector and unit size as specified in FTP 2023-28. Typical commitment is that exports must exceed imports by a stipulated percentage within 5 years (manufacturing) or 3 years (services). Failure to achieve NFE results in recovery of proportionate duty benefits received plus interest; in severe cases, EOU status may be cancelled and unit operations suspended.

How long does EOU Approval processing typically take in {city}?

Standard processing timeline is 60–90 days from submission of complete application to issuance of Approval Letter, provided all documents are complete and inspection is cleared within first 15 days. Delays may occur if additional documents are requested or inspection reveals infrastructure gaps. Express processing is not available under current DGFT norms.

Can an EOU unit supply goods/services to the domestic market in India?

Yes, but with restrictions. EOUs may supply up to 50% of their annual production (in value terms) to the domestic market; such domestic sales attract applicable duties and taxes. Supplies beyond 50% require special exemption from DGFT. Service EOUs have no domestic supply restriction if services are rendered outside India.

Is EOU Approval mandatory for exporting, or is it optional?

EOU Approval is optional and beneficial only if your business model relies heavily on imported inputs to keep costs competitive. If your unit uses predominantly domestic raw materials or has low import dependency, the cost of maintaining EOU compliance (audits, record-keeping) may outweigh duty savings. Consult a trade compliance expert in {city} to assess feasibility for your business.

EOU Approval

Get EOU Approval from DGFT for export-oriented units. Learn eligibility, application process, documents required, NFE commitment, and compliance under FTP 2023-28.

Obtain valid IEC from DGFT if not already held; verify active status and good standing
Prepare detailed application (Form EOU-1), project report with NFE calculations, financial statements, and location proof documents
Submit complete dossier to DGFT Regional Authority in India via SANCHALIT portal or offline; include application fee if applicable
Undergo pre-approval inspection by RA officials to verify land possession, infrastructure, and operational readiness within 15 days
Receive formal EOU Approval Letter from RA; constitute Board of Management and obtain Commencement Certificate from Development Commissioner within 6 months

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What is EOU Approval?

EOU (Export Oriented Unit) Approval is a formal authorization issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce & Industry to establish and operate a unit engaged in export production or provision of services. An EOU is granted exemption from payment of Basic Customs Duty (BCD), Additional Customs Duty (ACD), Countervailing Duty (CVD), and anti-dumping duties on import of inputs, capital goods, and consumables used for export production, subject to the conditions prescribed in the Foreign Trade Policy (FTP) 2023-28 and the Foreign Trade (Development & Regulation) Act, 1992 (FTDR Act).

EOU Approval under India's FTP framework enables manufacturers and service providers to source raw materials and components globally at competitive prices without tariff barriers, making them internationally competitive. The unit must commit to achieving a specified Net Foreign Exchange (NFE) positive balance within a defined period and maintain proper documentation and record-keeping as per Customs Act 1962 requirements.

Pricing

Package	Price	Details
Standard	On request	Including document prep

Process

📋
Obtain valid IEC from DGFT if not already held; verify active status and good standing
🔍
Prepare detailed application (Form EOU-1), project report with NFE calculations, financial statements, and location proof documents
📝
Submit complete dossier to DGFT Regional Authority in India via SANCHALIT portal or offline; include application fee if applicable
✅
Undergo pre-approval inspection by RA officials to verify land possession, infrastructure, and operational readiness within 15 days
📤
Receive formal EOU Approval Letter from RA; constitute Board of Management and obtain Commencement Certificate from Development Commissioner within 6 months

Documents Required

Valid IEC (Importer-Exporter Code) with good standing certification
Completed EOU Application Form (EOU-1) signed by authorized signatory
Detailed Project Report (DPR) including production/service plan, capacity, market strategy, and NFE projections
Latest audited financial statements (Balance Sheet, Profit & Loss) and income tax returns for preceding 2 financial years
Proof of land possession (ownership deed, registered lease, or MOA from landlord) with tenure verification
Board resolution (for companies) or proprietor declaration authorizing EOU application and operations
Proposed unit layout plan, architectural drawings, and infrastructure details for inspection
Copy of valid passport (for Indian nationals) or visa documents (for foreign promoters)
No Objection Certificate from local municipal authority or gram panchayat for location
Details of existing export/import transactions (if any) with supporting shipping documents

Frequently Asked Questions

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EOU Approval

Get EOU Approval from DGFT for export-oriented units. Learn eligibility, application process, documents required, NFE commitment, and compliance under FTP 2023-28.

Obtain valid IEC from DGFT if not already held; verify active status and good standing

Prepare detailed application (Form EOU-1), project report with NFE calculations, financial statements, and location proof documents

Submit complete dossier to DGFT Regional Authority in India via SANCHALIT portal or offline; include application fee if applicable

Undergo pre-approval inspection by RA officials to verify land possession, infrastructure, and operational readiness within 15 days

Receive formal EOU Approval Letter from RA; constitute Board of Management and obtain Commencement Certificate from Development Commissioner within 6 months

Google VerifiedBusiness

500+Export Clients Served

End-to-EndEXIM Support

What is EOU Approval?

Package

Price

Details

Standard

On request

Including document prep

Process

📋

Obtain valid IEC from DGFT if not already held; verify active status and good standing

🔍

Prepare detailed application (Form EOU-1), project report with NFE calculations, financial statements, and location proof documents

📝

Submit complete dossier to DGFT Regional Authority in India via SANCHALIT portal or offline; include application fee if applicable

✅

Undergo pre-approval inspection by RA officials to verify land possession, infrastructure, and operational readiness within 15 days

📤

Receive formal EOU Approval Letter from RA; constitute Board of Management and obtain Commencement Certificate from Development Commissioner within 6 months

Documents Required

Valid IEC (Importer-Exporter Code) with good standing certification

Completed EOU Application Form (EOU-1) signed by authorized signatory

Detailed Project Report (DPR) including production/service plan, capacity, market strategy, and NFE projections

Latest audited financial statements (Balance Sheet, Profit & Loss) and income tax returns for preceding 2 financial years

Proof of land possession (ownership deed, registered lease, or MOA from landlord) with tenure verification

Board resolution (for companies) or proprietor declaration authorizing EOU application and operations

Proposed unit layout plan, architectural drawings, and infrastructure details for inspection

Copy of valid passport (for Indian nationals) or visa documents (for foreign promoters)

No Objection Certificate from local municipal authority or gram panchayat for location

Details of existing export/import transactions (if any) with supporting shipping documents

Frequently Asked Questions

EOU Approval

What is EOU Approval?

Pricing

Process

Documents Required

Frequently Asked Questions

Can a unit under Special Economic Zone (SEZ) also apply for EOU status?

What is the minimum NFE commitment required, and what happens if it is not achieved?

How long does EOU Approval processing typically take in India?

Can an EOU unit supply goods/services to the domestic market in India?

Is EOU Approval mandatory for exporting, or is it optional?

Related Services

By category

Ready to get started?

EOU Approval

What is EOU Approval?

Pricing

Process

Documents Required

Frequently Asked Questions

Can a unit under Special Economic Zone (SEZ) also apply for EOU status?

What is the minimum NFE commitment required, and what happens if it is not achieved?

How long does EOU Approval processing typically take in India?

Can an EOU unit supply goods/services to the domestic market in India?

Is EOU Approval mandatory for exporting, or is it optional?

Related Services

By category

Ready to get started?