Export Oriented Units

100% Export Oriented Units

These are units which are allowed to be set up at any place subject to customs bonding. Production and manufacture takes place within the customs
bonded areas and must export all the items of produce. The unit enjoys exemption from payment of income tax till 31 st March 2009. Further all
imports towards the capital goods and raw materials are exempted from payment of customs (import) duty till the unit is de-bonded. All exports are
exempted from payment of excise duty and sales tax.
With prior permission from the Development Commissioner, upto a maximum of 50% of the manufactured goods are allowed to sold in the domestic
market. There is no exemption from payment of income tax, excise duty and sales tax on the items of manufacture sold in the domestic market to this
extent of items of This is similar to EPZ scheme. But in this scheme, there is no need to be physically located at EPZ. All other incentives are same as
provided to EPZ units.
Export Processing Zones (EPZ)
These zones are located at various places in India. Unlike a 100% EOU, an EPZ unit must be located within the zone, subject to availability of space.
An EPZ unit also enjoys exemption from payment of customs (import) duty, 'Zero import duty' and a 'special 10 years income tax rebate' are some of
the incentives provided. Also, there is no restriction on quantity of domestic sales.

Special Economic Zones(SEZ)

SEZ is a new scheme announced by the Government of India. SEZs are areas where export production can take place free from plethora of rules and
regulations governing imports and exports. Units operating in these zones have full flexibility of operations and can import duty free capital goods and
raw material. The movement of goods to and fro between ports and SEZ are unrestricted. The units in SEZ have to export the entire production. The
first two SEZs are being set up at Positra in Gujarat and Nangunery in Tamil Nadu. At the same time, Santacruz Electronic Export Promotion Zone,
Kandla Export Promotion Zone, Vizag Export Promotion Zone and Cochin Export Promotion Zones have been proposed to be converted in SEZs.