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EOU Check List

Basic Requirements for setting up an EOU (Check-list)
i) Planing your venture:

vIs it on your own
vWith foreign participation and nature of participation (foreign investment allowed 100%)

ii) What product do you intend to manufacture
vProduct/By-product
vDoes it requires clearance from Central/State Government authorities
vIs it an SSI Unit. If so, registration is required as an SSI

iii) Technology to be used
vIndigenous/foreign
vRelated costs and conditions

iv) Feasibility report
vOn your own or with help of consultant

v) The finances involved
vLand, structure, buildings etc (Please note, building construction material is not exempted from duty)
vCapital goods, machinery etc
vPayment for royalties etc.
vAdministration and establishment
vOthers : like interest on loans, related taxes and levies etc.

vi) The current competition overseas
vMain competitors
vDemand and price-levels.

vii) The import laws and other requirements in target markets
vAny fiscal/non-fiscal barriers, like anti-dumping laws
vQuota restrictions
vPreferential treatment to competitor countries

viii) Location of the unit
vWhether it is located close to a port or railroad
vAvailability of raw materials
vManpower availability
vEnvironment clearance needed if unit is located 25 kms from an urban town

ix) Capital goods, machinery and equipment to be used
vindigenous or foreign
vRelated costs

x) The raw materials and other inputs, like consumables etc that would be required:
vSource
vCost
vMonthly, quarterly and annual requirements

xi) The production process and the related inputs
vWhether production process requires air-conditioning plants, special furnaces or kilns etc.
vDetails and costs (Please note, air-conditioning equipment permitted duty free only if it is essential for production process).

xii) The production capacity and spare capacity:
vDo you intend to utilise the same by doing sub-contracting work for other export units in DTA or Export Oriented Unit (EOU)/Export Processing Zone (SEZ ) units.
vDetails of sub-contractors
vRelated costs

xiii) Any by-products turned out in the production process
vDetails of by-products
vWhether these would be exported or sold in Domestic Tariff Area (DTA)

xiv) Effluents or waste-material
vHow do you propose to treat these or discharge them.

xv) Packaging
vDetails of packaging
vSource
vCost

xvi) Power
vWhether the normal grid could supply adequate power
vWhether there would be need for a captive power plant
vCost of power plant
vFuel that would be required for captive power plant (e.g. furnace oil, LPG, coal etc).

xvii) Duties, taxes and fiscal levies both, Central and State-level
vCustoms and Excise levies
vSales tax, Octroi etc
vPower tariffs and duties

xviii) Other information
vThe company should be registered
vA current account with a bank authorised to deal in foreign exchange should be opened.
vRegistration-Cum-Membership Certificate (RCMC) should be obtained from the office of the concerned Development Commissioner.
vSales tax registration be obtained from the Sales Tax Department

xix) Mandatory clearances from State Government's
vPollution clearance certificate
vApproval of building plan in cases where building is proposed to be constructed.
vRegistration as a small scale industrial unit, if applicable
vRegistration under Factories Act

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