Contract farming 6.22

EOUs engaged in production/processing of agriculture/horticulture/aquaculture products, may on the basis of annual permission from the Customs authorities take out inputs and equipments (specified at Appendix-14- IJ) to the DTA farm subject to the following conditions:-

(a) Supply of inputs by the EOUs to the contract farm(s) shall be subject to the input-output norms approved by the DGFT/BOA.

(b) There shall be contract farming agreement between the EOU and the DTA farmer(s).

(c) The unit has been in existence for at least two years and engaged in export of agriculture / horticulture / aquaculture products; otherwise it shall furnish bank guarantee equivalent to the duty foregone on the capital goods/inputs proposed to be taken out to the Deputy/Assistant Commissioner of Customs/Central Excise till the unit completes two years.