Govt relaxes foreign exchange earning norm for EOUs
The government on Wednesday said the five year-period for Export Oriented Units to earn net foreign exchange may be extended if they are unable to export due to bans on shipments.
By PTI |
NEW DELHI: The government on Wednesday said the five year-period for Export Oriented Units to earn net foreign exchange may be extended if they are unable to export due to bans on shipments.
EOUs are required to be net foreign exchange earners in five years from the date of commencement of production.
As per a notification by the Directorate General of Foreign Trade, the five year period could now be suitably extended by the Board of Approval.
"Whenever a unit is unable to export due to prohibition/restriction imposed on export of any product mentioned in LoP, the five year block period for calculation of NFE earnings may be suitably extended by BoA," the notification said.
EOUs require a Letter of Permission (LoP) by the Development Commissioner before commencing operations.
The government has imposed curbs on export of several commodities including non-basmati rice and wheat. The prohibition on exports of any product is also applicable to shipments from the EOUs
EOUs are required to be net foreign exchange earners in five years from the date of commencement of production.
As per a notification by the Directorate General of Foreign Trade, the five year period could now be suitably extended by the Board of Approval.
"Whenever a unit is unable to export due to prohibition/restriction imposed on export of any product mentioned in LoP, the five year block period for calculation of NFE earnings may be suitably extended by BoA," the notification said.
EOUs require a Letter of Permission (LoP) by the Development Commissioner before commencing operations.
The government has imposed curbs on export of several commodities including non-basmati rice and wheat. The prohibition on exports of any product is also applicable to shipments from the EOUs
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