Para 5.2
- Document type
- Policy
- Dated
- Category
- Policy
Automatic Approval
- 5.2
- The Development Commissioners (DCs) of Export Processing Zones (EPZs) /Free Trade Zones (FTZS) accord automatic approval to projects where
- items do not attract compulsory licensing;
- where the location is in conformity with the prescribed parameters;
- the units undertake to achieve exports and value addition norms as prescribed in the Export and Import Policy in force;
- the CIF value of imported capital goods is financed through foreign equity,or foreign exchange required for import of plant and equipment (net of taxes) is within Rs. 100 Million, and in the case of import of second-hand capital goods if an Import Licence is not required;
- Where the foreign technology agreement if any, envisages a lump sum payment not exceeding US $ 2.00 Million and royalty payment up to 8% on exports and 5% on DTA sales (net of taxes) over a period of 5 years from the date of commencement of commercial production.
- where the exports are to general currency/hard currency areas;
- where the unit is amenable to bonding by customs authorities; and
- the unit has projected the minimum export turnover, as specified in the Handbook of Procedures. All proposals for FDI/NRI/OCB investments in EOU/EPZ units qualify for approval through Automatic Route subject to parameters listed under Paragraph 2.8.
- items do not attract compulsory licensing;