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Biz Advisory

EOU / IGCR Compliance

EOU (Export Oriented Unit) compliance — duty-free input imports under the IGCR Rules, obligation discharge, quarterly returns, and the Annual Progress Report to the Development Commissioner.

Reviewed by CA Harun Raaj, ICAI Reg. No. 238303·Last reviewed:
Starting from Discuss with usTypical timelineEOU & IGCR

An EOU imports inputs duty-free and exports its production, with the benefit tied to obligations — end-use conditions under the IGCR Rules 2022, quarterly returns, and the Annual Progress Report. We keep the obligations and the filings current.

What is included
  • • EOU approval and obligations review with the Development Commissioner
  • • IGCR conditions mapping for each duty-free input
  • • Import and production record maintenance design
  • • Quarterly return preparation and filing
  • • Annual Progress Report (APR) preparation
  • • Obligation discharge and notice response support
Documents required
  • • EOU approval letter and conditions
  • • Import records — Bills of Entry and duty-free input details
  • • Production and export records for the period
  • • Quarterly and APR filing history
Government fees

See the fee table below for the statutory filing charge and common delay logic.

Legal basis
  • • Foreign Trade Policy 2023
  • • Customs (Import of Goods at Concessional Rate of Duty) Rules 2022
  • • Customs Act 1962
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Process

How the service works

The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.

Step 1Review

Review the approval and obligations

We map the EOU approval letter, its conditions, and the obligations the unit carries.

Step 2IGCR

Map the IGCR conditions

We confirm each duty-free input's end-use condition under the IGCR Rules 2022.

Step 3Records

Set up the records

We establish the import, production, and export records the compliance runs on.

Step 4Returns

File the quarterly returns

We prepare and file the quarterly returns through the year.

Step 5APR

Prepare the APR

We prepare the Annual Progress Report for the Development Commissioner and track the obligation position.

AEO summary

An EOU imports inputs duty-free and exports its production, with the benefit tied to obligations — import conditions under the IGCR Rules 2022, quarterly returns, and the Annual Progress Report. We keep the obligation and the filings current.

A duty benefit with obligations attached

The EOU benefit is an exchange: nil-duty imports now, net foreign exchange earning and end-use compliance later. The IGCR Rules 2022 pin the end-use conditions to each input, and the Development Commissioner's quarterly and annual reporting tracks the obligations — so the unit's compliance is a running record, not a year-end exercise.

The risk is asymmetry: the benefit is taken at import, but the obligation is verified later. A unit that did not maintain the import-production-export trail faces a demand for the very duty it saved.

  • • Nil-duty inputs conditioned by the IGCR Rules 2022
  • • Quarterly returns and the APR track the obligations
  • • Records maintained so the benefit is never recalled

The calendar that protects the benefit

EOU compliance is a calendar: import records on entry, production monitoring through the year, quarterly returns, and the APR at year end. Each step is small; together they are the entire defence if customs or the Development Commissioner asks.

We build the calendar once and run it — records, returns, and the obligation position — so the unit's benefit stays earned.

  • • Quarterly returns filed without reminders
  • • APR ready when the Development Commissioner calls
  • • Obligation position tracked to discharge

Government fees

Fee breakdown

ItemFeeNotes
No standalone government feeNilFees apply only if a connected filing with a prescribed fee is part of the scope.

Timeline

Typical turnaround

Typical timeline usually means a quarterly turnaround, assuming documents are complete and any board or shareholder approvals are already in place.

Pricing note

This is a professional engagement; any fee applies only if a connected filing with the DGFT, customs, or the Development Commissioner carries one.

Related services

Keep the company moving

DGFT & RCMC

IEC and RCMC registration — the export identity the EOU depends on

EPCG & Advance Authorisation

The FTP 2023 capital-goods and input schemes — alternatives or complements to EOU status

Customs & FTP

Duty, classification, and scheme eligibility advisory under the Customs Act 1962 and FTP 2023

Export Accounting

Accounting for export transactions — revenue, exchange gains, and subsidy income under Ind-AS

FAQ

Frequently asked questions

What is an EOU and who approves it?
An Export Oriented Unit is a manufacturing or service unit approved by the Development Commissioner under the Foreign Trade Policy 2023 to import inputs free of duty and export its output, subject to obligations including net foreign exchange earning. The approval letter sets the unit's specific conditions.
What are the IGCR Rules?
The Customs (Import of Goods at Concessional Rate of Duty) Rules 2022 govern imports at concessional or nil duty for manufacturing — including EOUs. They impose end-use conditions, records, and the obligation to use the inputs for the declared purpose, and customs audits compliance against those conditions.
What happens if an obligation is missed?
The duty benefit is conditional: inputs used outside the declared purpose, or obligations not discharged, can convert the benefit into a duty demand with interest. The quarterly returns and the APR are how the position is tracked — a missed filing is the easiest finding for customs or the Development Commissioner to make.
What should you send us before we start?
Send the EOU approval letter and its conditions, the Bills of Entry for duty-free inputs, production and export records, and the filing history. That is enough for us to map the obligations and build the compliance calendar.

Canonical reference: https://www.pvtltd.co/services/eou-igcr-compliance

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We can help with the filing, the legal mapping, and the follow-up work that keeps the company compliant after submission.

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