Supply of Goods by one 100% EOU/EPZ Unit to another 100% EOU/EPZ Unit against payment in foreign exchange

100% EOUs and units in EPZs have been permitted to sell goods manufactured by them to other 100% EOUs/EPZs units against payment in foreign exchange provided such goods are required as input by buyer EOU/EPZ unit for its export production and both the buyer and supplier units comply with the relevant provisions of Exim Policy in force and the prescribed value addition criteria. Authorised dealers may sell foreign exchange to buyer units on receipt of application on form A2 containing details of the payments such as name, address of the EOU/EPZ beneficiary, cost of goods duly supported by documentary evidence such as invoice/bill etc. Such sales should be reported to Reserve Bank on form A2 in appropriate R Return together with copies of the relative invoice/bill and other required details.

NOTE: The above provisions will also apply, mutatis mutandis, to supply of computer services and hardware by one unit in Software Technology Park (STP)/ Electronic Hardware Technology Park (EHTP) to another unit in STP/EHTP against payment in foreign exchange.