q Trading units may be set up subject to achievement of positive NFEP and export performance as prescribed in Appendix-I. Setting up of trading units for diamond, gem & jewellery items shall be governed by the provisions of Chapter 8 of the Policy.

The provisions of paragraphs 9.9, 9.10, 9.11, 9.12, 9.13, 9.16 and 9.17 of this chapter shall not apply to trading units.

Trading units may import/procure from domestic tariff area all type of goods without payment of customs/excise duty for the purpose of exports or supply to other EOU/EPZ/EHTP/STP units or against valid advance licenses or specific duty free import entitlements.

The trading units may also undertake re-packing, labeling, minor processing etc. for which they shall be eligible for duty free procurement of packing, labeling materials etc. and the required capital goods in connection with their operations.

Trading units may also procure goods without payment of duty from other EOU/EPZ/EHTP/STP units for exports.