Samuel Jackson

EOU is an acronym used to collectively refer to units set up under the special schemes for Export Oriented Units (EOU), Electronics Hardware Technology Parks (EHTP), Software Technology Parks (STP) and Bio-Technology Park (BTP).

These are Units undertaking to export their entire production of goods and services (except permissible sales in Domestic Tariff Area (DTA)).

These unit may be engaged in manufacture of goods, including repair, re-making, reconditioning, reengineering, rendering of services, development of software, agriculture including agro-processing, aquaculture, animal husbandry, bio-technology, floriculture, horticulture, pisciculture, viticulture, poultry and sericulture.

Trading units are not covered under these schemes.

Generally, the Government imposes restrictions on imports and exports for the following reasons:

• Protection of public morals;
• Protection of human, animal or plant life or health;
• Protection of patents, trademarks and copyrights, and the prevention of deceptive practices;
• Prevention of use of prison labor;
• Protection of national treasures of artistic, historic or archaeological value;
• Conservation of exhaustible natural resources;
• Protection of trade of fissionable material or material from which they are derived;
• Prevention of traffic in arms, ammunition and implements of war.

However, there could also be situations such as maintaining price stability, honoring international commitments, protecting domestic procedures, etc., which might warrant imposition of restrictions, usually for a temporary period.

The Indian Trade Classification – Harmonized System (ITC-HS) allows for the free import of most goods without a special import license.

Certain goods that fall under the following categories require special permission or licensing.

1. Licensed (Restricted) Items – Licensed items can only be imported after obtaining an import license from the DGFT. These include some consumer goods such as precious and semi-precious stones, products related to safety and security, seeds, plants, animals, insecticides, pharmaceuticals and chemicals, and some electronic items.
2. Canalized Items – Canalized items can only be imported via specified transportation channels and methods, or through government agencies such as the State Trading Corporation (STC). These include petroleum products, bulk agricultural products such as grains and vegetable oils, and some pharmaceutical products.
3. Prohibited Items – These goods are strictly prohibited from import and include tallow fat, animal rennet, wild animals, and unprocessed ivory.

The Education Cess and Secondary and Higher Education Cess on imported goods is now abolished and replaced by the Social Welfare Surcharge. This surcharge will be levied at the rate of 10 percent of the aggregate duties of customs, on imported goods.

A safeguard duty is a tariff designed to provide protection to domestic goods, favoring them over imported items. If the government determines that increased imports of certain items are having a significantly detrimental effect on domestic competitors, it may opt to levy this duty on those imports to discourage their proliferation.

However, the duty does not apply to articles imported from developing countries.

The government may exempt imports of any article from this duty. The notification issued by the government in this regard is valid for four years, subject to further extension. However, the total period cannot exceed 10 years from the date of first imposition.