In case an EOU is procuring raw material from the indigenous market and then selling the product in the DTA then what is the amount of duty they are required to pay?
Ans. In case an EOU making a product by procuring 100% raw material indigenously, then such product can be sold in the domestic market on payment of excise duty. Department of Revenue Notification No. 8/97-CE dated 1-3-97, may please be seen. However I must be ensure that raw material consumables etc is sourced 100% indigenously. Because in the past certain textile units which had used 100% indigenous raw material but used imported consumables, which was less then even 1%, even then Department of Revenue had asked such units to pay customs duty instead of excise duty. Q. Are Status Holder EOUs required to execute B-17 Bond with or without bank guarantee? If without, then what about the bank guarantees issued prior to the changes in the Foreign Trade Policy ? Should the bank guarantee be cancelled already executed ? Ans. As per Paragraph 6.12(f) of the Foreign Trade Policy, the Units will not be required to furnish bank guarantee at the time of import or going for job work in DTA, where
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