| Factors |
Export Oriented Units (EOU) |
Special Economic Zone (SEZ) |
| Establishment |
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| Import Procedures |
The unit can import capital goods, raw materials, consumables, packing material, spares etc. without payment of customs duty. Similarly, these can be procured indigenously without payment of excise duty. Second hand capital goods can also be imported. |
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Minimum investment in plant and
machinery and building is Rs 100 lakhs for EOU. This should be before commencement of commercial production.
|
There is no such limit for SEZ. |
| Procedure |
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| Green Channel |
There is no physical supervision of
customs / excise authorities over
production and clearances, but prescribed records are required to be maintained.
|
There is no physical supervision of customs /
excise authorities over production and
clearances, but prescribed records are
required to be maintained. |
| Custom Clearance |
Fast Track Clearance Scheme (FTCS) for clearances of imported consignments for EOU. |
In case of SEZ units, customs clearance for export and import is obtained within the zone itself. |
| Export of final production |
Generally, all final production should be exported, except rejects upto prescribed limit. |
Generally, all final production should be exported, except rejects upto prescribed limit. |
| Central Sales Tax (CST) |
Central Sales Tax (CST) paid on purchases is refundable (but not local tax). |
In case of SEZ unit, supplier does not have to pay CST |
| Supplies made by Indian Suppliers Infrastructure |
Supplies made to EOU by Indian supplier are ‘deemed exports’ and supplier is entitled to benefits of ‘deemed export’. |
Supplies to SEZ are ‘exports’ and all export benefits are available. |
| Infrastructure |
General infrastructure available to EOU unit are not as better as available to SEZ units |
General infrastructure available to SEZ unit are much better as available to SEZ units |