APPENDIX 14 D

---

FORM OF LEGAL AGREEMENT FOR EXPORT ORIENTED UNITS AND EPZ/SEZ UNITS

---

NOTE: Please see paras 6.6 & 7.6 of EXIM Policy and Paras 6.6 & 7.6 of the Handbook of Procedure.

(Above Note has been corrected vide PN No. 16/2002, Dt. 05/06/2002)

---

An agreement made this _____________day of ___________2002_____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)/a unit in a Special Economic Zone (SEZ) having its registered office at ___________________ and factory 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/SEZ (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/SEZ 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- ‘I’.

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:

---

1.	The Unit shall achieve NFE Or 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 the Export and Import Policy. (Strikeout which ever is not applicable)
2.	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/SEZ scheme, exports to Nepal or Bhutan shall qualify, if payment is made in Foreign Exchange.
3.	(a)The Export Performance(EP) undertaken by the unit 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. (b) However, in case of conversion of DTA units to an EOU/EPZ 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/EPZ.(Para 3(a) & 3(b) not Applicable to SEZ units.)
4.	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.
5.	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 III 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 - III within a period of 90 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 case of wrong submission of such information or failure to submit such information within the stipulated time, DC may withdraw the permission granted to the unit for operation.
6.	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(for EOU/EPZ units) and NFEP/NFE as prescribed in 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/NFE and EP(for EOU/EPZ units) is within the permissible norms specified in the monitoring guidelines given at Appendix 14-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.
7.	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 Act, 1944 and rules made thereunder and/or from any payment due to the Unit from the Government. (In Sl.No.7 Bold words has been substituted vide PN No. 16/2002, Dt. 05/06/2002)
8.	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.
9.	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 here into. common seal of the within named Unit has been affixed here into 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-I

EXEMPTION MATERIALS

1. Plant, Machinery and Equipment to be imported.

No.	Description of goods

2. Raw Materials, Components and Consumables to be imported.

No.	Description of material

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

ANNEXURE-II

Period of reporting: (April-June) (July-Sept.) (Oct-Dec) (Jan-March, ) Quarterly Progress Report for the EOUs/EPZs/SEZs which are under implementation:

1.	Details of the unit	:
(a)	Name of the unit	:
(b)	IEC No.	:
2.	Location of the Factory & Full Address	:
a.	Address	:
b.	Phone No.	:
c.	Fax No.	:
3.	Regd.Office	:
a.	Address	:
b.	Phone No.	:
c.	Fax No.	:
d.	e-Mail No.	:
4.	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 purcahsed	:	To Start/ Started Over/Building
c.	Electricity Available	:	Not applied	Applied on
d.	Water Available	:	Not applied	Applied on
e.	Telephone/Fax Available	:	Not applied	Applied on
7.	Employment:
a)	No. of Men Workers employed in the unit		Managerial	Skilled	Unskilled
b)	No. of Women workers employed in the unit		Managerial	Skilled	Unskilled
c)	TOTAL:
8.	Imports during the quarter (Rupees in Lakhs) Cumulative		During the 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-III

FORMAT FOR QUARTERLY/ANNUAL PROGRESS REPORT FOR THE WORKING UNITS

Period --------------------------

PERIOD OF REPORTING: QUARTERLY (APRIL-JUNE)(JULY-SEPTEMBER)(OCTOBER DECEMBER)(JANUARY-MARCH), ANNUAL (APRIL-MARCH)

1.	Details of the Unit
a)	Name of the Unit
b)	IEC. No.
2.	PERIOD OF REPORTING
3	Approval No. & Date
4.	Item of manufacture/service-Annual Capacity (Details of all items to be provided) a) b)
5.	Factory Location/Address/ Telephone No.
6.	Regd.Office Address/Tel/Fax No
7.	(a) e-Mail Address (Compulsory)
	(b) Web Site, if any
8.	Date of commencement of production
9.	Details of Foreign Exchange Inflow/Outflow EXPORT(INFLOW)	(Rs. in Lakhs)	$ in Million
10)	FOB value of exports for the Quarter/Year a) GCA exports b) RPA exports c) Total:
11)	(a)Goods sold in DTA in terms of Para 6.10(b)for quarter/year (b)Deemed export for other categories during the quarter/year Total
12)	Cumulative exports during current quarter/year.
13)	Cumulative exports for the previous year.
14)	Country-wise details of exports IMPORT(OUTFLOW)	(Rs. in Lakhs)	$ in Million
15.	Opening balance of imported RM, Consumables, spares, etc., during the quarter/year
16)	Raw Materials/consumables/components spares etc. imported during the quarter/year
17)	RM/consumables/spares, etc. transferred to other units during the quarter/year
18)	RM/consumables/spares, etc. received under the inter-unit transfer during the quarter/year
19)	Cumulative import of RM/consumable etc. during the quarter/year
20)	Imported RM/Consumables/Spares, etc., CONSUMED during the quarter/year
21)	Closing balance of imported RM/Consumables /Spares, etc, at the end of quarter/year
22)	Opening balance of capital goods
23)	Import of capital goods during the quarter/year
24)	Capital goods received under inter-unit transfer
25)	Capital goods transferred under inter-unit transfer
26)	Cumulative imports of capital goods during quarter/year.
Sub-Total [Column No. 19 + Column 26]
27)	Other FE Outflow(Royalty/technological know-how/investment /Dividend payment/Travel/Commission etc.) during the quarter/year
TOTAL OUTFLOW [Column No. 19 + 26 +27]
28)	Net foreign exchange earning (NFE)/Net foreign exchange earning as a percentage of exports (NFEP) as per policy	Approved (only for EOU/EPZ units)	Achieved
29)	EP(only for EOU/EPZs to be given annually)
DOMESTIC PROCUREMENT
30)	Opening balance of indigenous capital goods during the quarter/year
31)	Purchase of indigenous capital goods during the quarter/year
32)	Cumulative balance of indigenous capital goods purchased during the quarter/year
33)	Opening balance of indigenous RM/Consumables/spares, etc., during the quarter/year
34)	Purchase of indigenous RM/Consumables/spares, etc during the quarter/year
35)	Cumulative balance of indigenous RM/consumables/spares purchased during the quarter/year
DTA SALE
36)	(a)Sales of goods effected in DTA if any	Quantity	Value
	(b)Sales of rejects in DTA if any:	Quantity	Value
	(c)Sale of Waste/Scrap/Remnant	Quantity	Value
	d) Sale by product
	(e)Total	Quantity	Value
37)	DTA sale on full duty	Quantity	Value
38)	Items of manufacture/service Annual capacity(at the end of financial year)
39)	Foreign/NRI/Indian investment (to be submitted quarterly/annually)	Foreign	NRI	Indian
	i) Authorised capital
	ii) Paid up capital
	iii) Foreign Direct Investment -	(I) Approved (II)Actual Inflow during the quarter/ year (III)Cumulative balance for the quarter/year
	iv) NRI capital	(I) Approved (II) Actual Inflow during the quarter/year (III)Cumulative balance for the quarter/year
40.	Employment:
a)	No. of Male Workers employed in the unit	Total	Managerial Skilled Unskilled
b)	No. of Women workers employed in the unit	Total	Managerial Skilled Unskilled
c)	TOTAL: (a + b)
41.	OTHER INFORMATION :

a) Goods exported without GR form under intimation to the Development Commissioner of SEZ such as (i) imported goods found defective for the purpose of replacement by foreign suppliers or collaborators, imported goods on loan basis, export of free samples, surplus goods imported from foreign suppliers or collaborators free of cost for production operations, consignments imported for participation in exhibitions etc.(only for SEZ Units)
b) Overseas investment

Overseas investment made by the unit at the end of last quarter/year

a) Less than one years	Amount in $
(b) More than one years	-do-

(only for SEZ Units)
c) Cases of pending Foreign Exchange

Cases of pending Foreign Exchange realisation outstanding for more than 180/360 days at the end of last quarter/ financial year

Date of export :

Name of Importer:

Address :

Amount

(180 days for EOU/EPZ units and 360 days for SEZ Units)

d) External commercial borrowing

External commercial borrowing pending at the end of last quarter/year

(a) Less than three years	Amount in $
(b) More than three years	-do-

(e) Revenue contribution

Revenue contribution by EOU/EPZ/SEZ units

(a) Excise duty on DTA sale during the financial year
(b) Income tax paid, if any, during the financial year
(c) State taxes, cess duties & levies (including CSTpaid on domestic procurement).

(S I G N A T U R E)
With Seal of Co.

Notes :-

1) The above information should be given separately for each Letter of Permission.

2) 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.