NOTE: PLEASE SEE PARA 9.6 OF THE POLICY AND PARA 9.20 OF THE HANDBOOK OF PROCEDURE VOL.1 ------------------------------------------------------------------------------ An agreement made this _______________ day of ______________19__ between M/s. ________________________ an Export Oriented Unit (EOU)/a unit in the Export Processing Zone (EPZ) / SEZ having its registered office at _______________________ (hereinfafter referred to as "the unit" which exppression shall include its successors and assigns) of the one part and the President of India (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 indgenously Plant and Machinery , raw materials, components, spares and consumables free of Import / Central excise duty as per details given at Annexure `A". And whereas as a licence 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 DTA which are counted towards fulfilment of export performance as per Policy) as per details given in the Annexure -B 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 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 Appendix-I of the Export and Import Policy, and such performance shall be subject to annual monitoring by the DC having jurisdiction over its activities under the guidelines issued by the Ministry of Commerce from time to time and the unit shall be liable for penalty under the Foreign Trade(D&R)Act 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 not qualify, if made otherwise than against payment in Foreign Exchange. The Export performance undertaken by the EOU under the EOU/EPZ/SEZ 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. However, in case of conversion of DTA units to an EOU under provisions of the Exim Policy, where the unit may have availed EPCG scheme while functioning in DTA & has to fulfill EP under EPCG license, such EP will be subsumed under EP of EOU Scheme. 2. 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 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. 3. The Unit shall after the commencement of production for export, submit to the concerned Development Commissioner, quarterly performance 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 by the Unit during the period. An annual performance report shall be submitted within a period of 45 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. 4. In the event of the Unit failing to fulfill the terms & conditions of LOP/LOI and the minimum stipulated level of EP and NFEP as prescribed in Appendix-I of the Export-Import Policy, except when the fulfillment of such conditions is prevented or delayed because of any law, order, proclamation, regulation / rdinance of the Government or the shortfall in fulfillment of NFEP and EP is ithin the permissible norms specified in the monitoring guidelines given at ppendix- E the unit would be liable for penal action under the provisions of oreign Trade (Development & Regulation) Act, 1992 and the Rules & Orders made thereunder . 5. 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/leviable to 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 and Salt Act 1944 and rules made thereunder and/or from any payment due to the Unit from the Government. 6. 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. 7. 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 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.