NOTE: PLEASE SEE PARA 9.21 OF THE POLICY ------------------------------------------------------------------------------------ An agreement made this _____________day of ___________19_____between M/s. ___________________ (indicate legal status i.e.Company or Partnership firm) a trading/service unit in the............................ Export Processing Zone (EPZ)/SEZ 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 the Development Commissioner, Ministry of Commerce, Government of India, New Delhi (hereinafter referred to as "Government" which expression shall include his successors in office and assigns) of the other part. Whereas in response to an application by the unit, the Government has communicated vide Letter No. ___________dated _________to the said M/s....................... the terms and conditions for setting up the unit for the purposes mentioned in para 9.21 of the Export and Import Policy, 1997-2002 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 capital goods, raw materials, components, spares and consumables, packaging material etc. free of Import / Central excise duty, as per details given at Annexure- "A" for the purpose as aforesaid. 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 suppies in the DTA which are counted towards fulfillment of export performance as per Policy) as per details given in the Annexure-B beginning from the first day after commencement production(hereinafter referred to as the prescribed date) . NOW THIS AGREEMENT WITNESSETH AS FOLLOWS: ----------------------------------------------------------------------------- 1. The unit shall carry out the activities as mentioned in the Policy and achieve a minimum export performance (including the supplies in the DTA which are counted towards export performance as per Policy) in a period of five years, counting from the prescribed date and shall also achieve minimum net foreign exchange earning as per percentage of export(NFEP) as prescribed in Appendix-I of the Policy and its performance shall be subject to annual monitoring by the DC having jurisdiction over its activities under the guidelines issued by the Department of Commerce from time to time and the unit shall be liable for penalty under the Foreign Trade(D&R)Act for failure to fulfil such obligation. This obligation shall be in addition to and over and above any other obligation that might have been or may be imposed on the unit by the Development Commissioner on any other ground or by any other authority as per any other law for the time being in force. 2. The unit shall intimate the date of commencement of business within one month of the date of such commencement to the concerned Development Commissioner. 3. The unit shall submit to the concerned Development Commissioner, quarterly report in the prescribed format for the period ending March/June/September and December every year within 30 days of the close of quarter, giving details of the imports/exports effected and purchases made from the Domestic Tariff Area during the period in the proforma prescribed by the Development Commissioner . An annual report shall also be submitted within a period of 45 days following the close of financial year duly verified by the Customs Officer, failing which further imports and supplies in the DTA will not be permitted. 4. The unit shall make appropriate arrangements for proper and safe storage of goods imported including arrangements for air conditioning space for electronic components, other items wherever necessary. 5. The unit shall maintain records as prescribed by the Development Commissioner/Assistant Commissioner of Customs and shall observe all conditions and procedures prescribed under Customs Law or, any other law for the time being in force. 6. In the event of the unit failing to fulfill the obligation undertaken by it as aforesaid except when the fulfillment of such obligation is prevented or delayed because of any law, order, proclamation, regulation/ordinance of the Government, the unit shall, on the instructions of the concerned Assistant Commissioner of Customs pay to the Government a sum equivalent to the amount of Customs/Central Excise duty that would be leviable on the items allowed for import/purchase by the Warehouse in terms of approval granted to them together with interests at the prescribed rate. 7. The unit may be allowed to dispose of the goods in the domestic Market in accordance with the EXIM policy on payment of applicable duties and taxes. 8. Any order issued by the Development Commissioner 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. 10. The unit shall have identifiable premises and shall maintain separate accounts. 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) 2. ______________(Name, Designation and 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) NOTE: The condition of minimum export performance(EP) will not apply to SEZ units. ANNEXURE-A --------------- 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 goods ------------------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------- 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 goods ----------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ANNEXURE-B ------------------- Projected Export turnover for a period of five years : --------------------------------------------------------------

Year	FOB value of Exports (US $ )
1st
2nd
3rd
4rd
5th
Total :

(FTZ has been replaced with SEZ at all places in this form vide Exim.Public Notice No. 10(RE-00)/1997-2002, Dt. 22-5-2000.