Subject to the approval of the Development Commissioner, EOU/EPZ/EHTP/STP units may be debonded. Such debonding shall be subject to payment of duties of Customs and Excise and the industrial policy in force at the time of debonding.

If the unit has not achieved the obligations under the scheme, the debonding shall also be subject to penalty as may be imposed by the competent authority.

In the event of a gem and jewellery unit ceasing its operation, gold and other precious metals, alloys, gem and other materials available for manufacture of jewellery, shall be handed over to an agency nominated by the Ministry of Commerce and Industry (Department of Commerce) at the price to be determined by that agency.