APPENDIX - 16B
FORM OF LEGAL AGREEMENT FOR EXPORT ORIENTED UNITS AND EPZ UNITS
- NOTE:
- PLEASE SEE PARAGRAPH 9.6 OF THE POLICY AND PARAGRAPH 9.20 OF THE HANDBOOK OF PROCEDURE VOL.1
An agreement made this _____________day of ___________2000_____between M/s. _________________________________( indicate legal status i.e. a company or firm) an Export Oriented Unit (EOU) / a unit in the Export Processing Zone (EPZ) having its registered office at ___________________(hereinafter referred to as “the unit” which expression shall include its successors and assigns) of the one part and the President of India acting through Development Commissioner (DC) of ……………..EPZ (hereinafter referred to as “Government” which expression shall include his successors in office and assigns) of the other part.
Whereas the Government has communicated vide Letter No. ___________dated _________to the Unit the terms and conditions for setting up the EOU/EPZ unit for the manufacture of __________________and the Unit has duly accepted the said terms and conditions vide their letter No.__________dated __________.
AND WHEREAS the unit has been permitted to import/purchase indigenously Plant and Machinery, raw materials, components, spares and consumables free of Import / Central excise duty as per details given at Annexure-‘A’.
And whereas a license has been granted to the unit by the Government, on the basis of their projected export of US $_____________in five years, (including the supplies in the Domestic Tariff Area(DTA) which are counted towards fulfillment of export performance as per Policy) beginning from the first day after commencement of commercial production(hereinafter referred to as the prescribed date)after allowing admissible rejects.
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
- The Unit shall achieve minimum export performance(EP) (including the supplies in the DTA which are counted towards export performance as per policy) for a period of five years, counting from the prescribed date, after allowing admissible rejects and shall also achieve minimum Net Foreign Exchange as a percentage of export(NFEP) as prescribed in Appendix-I of the Export and Import Policy, and such performance shall be subject to annual monitoring by the Development Commissioner(DC) having jurisdiction over its activities under the guidelines issued by the Ministry of Commerce, Government of India from time to time and the unit shall be liable for penalty under the Foreign Trade(D&R)Act, 1992 as amended from time to time for failure to fulfill such obligation. For the purpose of counting export performance under the EOU/EPZ scheme, exports to Nepal or Bhutan shall qualify, if payment is made in Foreign Exchange.
The Export performance undertaken by the EOU under the EOU/EPZ Scheme shall be in addition to and over and above any other export obligation that might have been or may be imposed on the Unit on any other ground.
However, in case of conversion of DTA units to an EOU under provisions of the Exim Policy, where the unit may have availed Export Promotion Capital Goods (EPCG) scheme while functioning in DTA & has to fulfill EP under EPCG license, such EP will be subsumed under EP of EOU Scheme.
- The unit shall intimate the date of commencement of the production for export within one month of such date to the concerned Development Commissioner. The unit shall maintain E-mail address regularly during the period under bond.
The unit shall not dispose of its production in the domestic market except in terms of the provisions of Export and Import policy and/or when specifically allowed by the competent authority.
- The Unit shall after the commencement of production for export, submit to the concerned Development Commissioner, quarterly performance report in the prescribed format at Annexure B /B1 for the period ending March/June/September and December every year within 30 days of the close of quarter through E-mail giving details of the imports/exports effected and purchases made from the Domestic Tariff Area by the Unit during the period. An annual performance report shall be submitted in the prescribed format given at Annexure - C within a period of 45 days following the close of financial year failing which further imports and DTA sale will not be permitted. Annual Performance Reports shall be certified by a Chartered Accountant.
- In the event of the Unit failing to fulfill the terms & conditions of Letter of Permission(LOP) / Letter of Intent (LOI) and the minimum stipulated level of EP and NFEP as prescribed in Appendix-I of the Export-Import Policy, except when the fulfillment of such conditions is prevented or delayed because of any law, order, proclamation, regulation/ordinance of the Government or the shortfall in fulfillment of NFEP and EP is within the permissible norms specified in the monitoring guidelines given at Appendix 16-E the unit would be liable for penal action under the provisions of Foreign Trade (Development & Regulation )Act, 1992 and the Rules & Orders made thereunder .
- The unit shall also be subject to the conditions stipulated and required for availing exemption from duty of Customs and Excise under the relevant Customs & Excise Notifications and any customs duties/Excise duties and interest payable to / leviable by the Government for failure to fulfill such conditions shall also, without prejudice to any other mode of recovery be recoverable in accordance with the provisions of Section 142 of the Customs Act 1962/Section II of the Central Excise and Salt Act 1944 and rules made thereunder and/or from any payment due to the Unit from the Government.
- Any order issued by the Government in this regard shall be final and binding and the Unit thereby undertakes to comply unconditionally with such an order.
- Any Stamp Duties payable on this document or any document executed thereunder shall be borne by the Unit.
In witness whereof the common seal of _____________has been here into affixed and for and on behalf _______________has set and subscribed his hands hereinto. common seal of the within named Unit has been affixed hereinto in the presence.
Signature______________
of (I) Shri _____________________
(I)_______________________
(Residential address)
Director and (ii) Shri _______________Director who have been duly authorized for the purpose by a resolution
of the Board of Directors of the Company passed at the meeting held on ______________and who have signed
in the presence of _________________.
1. ______________ (Name, Designation and Address)
(Tel. No.
(E-mail Address )
2. ______________ (Name, Designation and Address)
(Tel. No.
(E-mail Address )
Signed for an on behalf of the President of India
By Shri ________________________________________________in the presence of
1. ______________________________________(Name , Designation and Address)
2. ______________________________________(Name, designation and Address)
ANNEXURE-A
EXEMPTION MATERIALS
1. Plant, Machinery and Equipment to be imported.
| No. | Description of goods |
| [1] | [2] |
| | |
2. Raw Materials, Components and Consumables to be imported.
| No. | Description of material |
| [1] | [2] |
| | |
3. Plant,Machinery and Equipment and Raw Material, Components and Consumables to be indigenously
produced and purchased without payment of Central Excise Duties.
| No. | Description of material |
| [1] | [2] |
| | |
ANNEXURE-B
Period of reporting: (April-June) (July-Sept.) (Oct-Dec) (Jan-March,2001)
Quarterly Progress Report for the EOUs which are under implementation:
1. Name of the unit :
2. Factory: :
a. Address :
b. Phone No . :
c. Fax No. :
3. Regd.Office
a. Address :
b. Phone No.
c. Fax No. :
d. E-Mail No. :
4. SIA/DC Approval No. and date :
5. Green Card No. and date
and the period of validity :
6. Present position in regard to
setting up of the unit (Tick whichever
is applicable)
a. Acquisition of land : Yes No
b. Erection of Building : To Start/ Started Over/Building purcahsed
c. Electricity : Not applied Applied on Available
d. Water : Not applied Applied on Available
e. Telephone/Fax : Not applied Applied on Available
7. Employment:
Supervisery
Non-supervisery
8. Imports during the quarter (Rupees in Lakhs) During the Cumulative
Quarter
a. Value of Capital Goods imported
b. Value of Raw Materials, Components
etc. imported
c. Value of indigenous Capital Goods
purchased.
d. Value of Industrial Raw Materials
Components etc. purchased.
9. Sanction of bonding facilities: Yes No
a. if "yes" date on which warehousing
licence issued
b. if "no" date on which customs/
excise approached.
10. Date likely to commence production :
11. Any other information :
(Signature with seal of the company)
Place:_____________
Date:______________
ANNEXURE-B1
PERIOD OF REPORTING (APRIL-JUNE)(JULY-SEPTEMBER)(OCTOBER-DECEMBER)(JANUARY-MARCH),2001
QUARTERLY PROGRESS REPORT FOR THE WORKING UNITS
1. Name of the EOU :
2. PERIOD OF REPORTING :
3 SIA /DC Approval No. & Date :
4. Item of manufacture :
5. Factory Location/Address/ :
Telephone No.
6. Regd.Office Address/Tel/Fax No :
7. E-Mail Address, if any :
8. Date likely to commence :
production if not already
commenced
9. Date of commencement of :
production (for those who have
already commenced production)
10. Date of First export :
11. Details of Foreign Exchange (Rs. in Lakhs) $ in Million
Inflow/Outflow
i) FOB value of exports for the :
Quarter
a) GCA exports
b) RPA exports
c) Total:
ii) Goods sold in DTA in terms of :
Paragraph 9.10
iii) Cumulative exports during current :
financial year.
iv) Cumulative exports for the :
previous years.
v) Country-wise details of exports :
vi) Value of capital goods :
imported during the quarter
vii) Cumulative import CG during :
current year
viii) Value of Imported Raw :
Materials/consumables/components
spares etc.during the quarter
ix) Cumulative import of :
RM/consumable etc. during
current year
x) Country-wise details of imports :
xi) Value of goods purchased from :
other EOU/EPZ units
xii) Other FE Outflow(Royalty/ :
Travel/Commission etc.)
xiii) Value of Indigenous capital goods :
purchased
xiv) Value of Indigenous RM/spares :
/components/consumables purchased
xv) Net foreign exchange earning as Approved Achieved
a percentage of exports(NFEP)
xvi) Sales of goods effected in DTA if Quantity Value
any
xvii) Sales of rejects in DTA if any: Quantity Value
xviii) Foreign/NRI/Indian investment
a) Approved (cumulative) Foreign NRI Indian
b) Remittance received (cumulative)
xix) Details of Employment:
a) No. of Men Workers employed in Managerial Skilled Unskilled
the unit
b) No. of Women workers employed Managerial Skilled Unskilled
in the unit
a. TOTAL:
(S I G N A T U R E)
With Seal of Co.
Annexure C
ANNUAL PERFORMANCE REPORT OF EOU/EPZ UNITS
PART-A :
1. Name of the unit :
2. LOP No. & Date :
3. Item of Manufacture :
4. Date of commencement of :
commercial production
Rs. in lakhs US$" 000
5. Opening balance of Capital Goods : :
6. Import of capital goods during the year :
7. CG received under Inter-Unit :
Transfer during the year
8. Outflow of FE on account of know how fees :
Total :
9. Opening balance of imported RM, :
consumables, spares, etc. at the
beginning of the year
10. RM, Consumables, spares, etc. :
imported during the year
11. RM, consumables, spares, transferred to :
other units under inter unit transfer
12. RM, consumables, spares received :
under inter unit transfer
13. Imported RM, Consumables, spares, etc. :
consumed during the year
14. Closing balance of imported RM, consumables, :
spares, etc at the end of the year
15. Outflow of FE on account of interest on ECB, :
Export commission, foreign travel, royalty/
dividend payment etc
Total :
16. FOB value of exports :
17. Supplies made under paragraph 9.10 :
Total
18. DTA sales-
(I) Finished goods
(II) Rejects
(III) Waste & :
19. NFEP -
(I) As per EXIM Policy
(II) Actually achieved :
20. Export Performance -
(I) as per Policy
(II) actually achieved :
Part B (as on 31.3.2001)
Authorised capital :
Paid up capital :
Foreign Direct Investment -
(I)Approved
(Since inception)
(II) Actual Inflow :
NRI capital
(I)Approved
(Since inception)
(II) Actual Inflow :
Indian Equity
| | Supervisory | Non-supervisory
Total |
| Employment : | Male | : |
| Female | : |
| Total | : |
Notes :-
1) The above information should be given separately for each Letter of Permission.
2) Figures should correspond to financial year April-March.
3) The information given in the formats should be authenticated by the authorized signatory of the
unit and should be certified for its correctness by a Chartered Accountant with reference to the
account records and registers maintained by the unit.