Incentives for EPZs

SOME INCENTIVES GIVEN TO EPZs AND EOUs

Single Window Clearance
No import licences are required
Import of all industrial inputs exempt from customs duty
Supplies from the DTA to EOUs and EPZ units are regarded as deemed exports and are hence exempt from payment of excise duty which means that high quality inputs are available at lower costs.
On fulfilment of certain conditions, EPZs, and EOUs are exempted from payment of corporate income tax for a block of 5 years in the first 8 years of operation. Export earnings continue to be exempt from tax even after the tax holiday is over.
Private bonded warehouses in the 7 EPZs can be set up for
- Import and sale of goods including in the DTA, subject to payment of applicable duties at the time of sale
- Trading including re-export after repacking/labeling oRe-export after repair, reconditioning or re-engineering
- EOUs and EPZs are permitted to sub-contract part of their production processes for job work to units in the DTA on a case by case basis.
Supplies to the DTA under international competitive bidding against payment in foreign exchange to other EOUs and EPZ units and against import licenses are considered towards fulfilment at the export obligation.
The FOB value of exports of EOUs and EPZ units can be clubbed with that of parent companies located in the DTA for the purpose of obtaining a Trading or Export House status
EOUs and EPZ units may export goods through Trading and Export Houses or other EOU and EPZ Units.