By another notification, the revenue department has allowed software technology park (STP) units to import captive power plants and captive generating sets without duty.

Further,acquaculture and agriculture EOU units have been allowed to import or procure high speed diesel (HSD) duty-free on the basis of the recommendation of the Board of Approval for EOUs. The board will fix norms for each unit on the basis of which duty-free procurement of HSD.

In yet another instance of benevolence shown by the department, the function of trading by EOUs/EPZs/STP/EHTP (electronic hardware technology park) units has been elaborated. Now, they can undertake re-packing, labelling, minor processing etc for which they will be eligible for procurement of duty-free materials.

Further, the trading units can procure goods without duty from other EOU/EPZ/STP/EHTP units for exports. They will however be required to achieve positive net foreign exchange as a percentage of exports (NFEP) and export performance laid down in Appendix I of the policy.

The trading units will not be eligible for sale on the domestic tariff area (DTA), deemed export benefit, inter-unit transfer, sub-contracting etc which are otherswise available to EOU/EPZ units. They will however be allowed to supply goods to other EOU/EPZ/STP/EHTP units or supply goods in DTA against valid advance licences or specific duty-free import entitlements.

Para 9.9(a) of the policy provides for DTA sale of rejects. Prior to the revision of the policy, rejects above 5 per cent of the fob value of exports were counted against DTA sale entitlements allowed up to 50 per cent of the fob value of exports.

The revenue department has amended the para to stipulate that all sale of rejects in DTA shall be counted in the overall limit of 50 per cent.Para 9.8 of the Handbook of Procedures has also been revised by including additional items allowed to be imported without duty by EOU/EPZ/STP/EHTP units.

These include uninterrupted power supply (UPS) system, pollution control equipment, quality assurance equipment, storage systems, special racks for storage, modular furniture, computer furniture, anti-static carpet, teleconference equipment, servo control systems, air conditioners, panel for electrical, security systems.

Granite EOUs have been allowed to import/procure specified capital goods, equipment, inputs etc duty free and to use them in their own quarries. Granite quarried has to be brought back to the EOU/EPZ units for further manufacturing/processing and export.