The EHTP Scheme is a 100% Export Oriented Scheme for undertaking manufacturing of electronic hardware equipment/components and other items. in India. This scheme is unique in its nature as it focuses on one product/sector, i.e. Electronic Hardware.
An EHTP unit is also allowed to manufacture items other than those specified in the approval letter, provided that such other items fall in the category of Electronic Hardware, the design and production facilities are common and have similar manufacturing process.
Scheme Benefits & Highlights
- The Central Government, State Government, Public or Private sector undertakings or any combination thereof may set up the Electronic Hardware Technology Park (EHTP).
- A company may set up EHTP unit anywhere in India.
- Foreign equity permissible upto 100%.
- 100% foreign equity investment in the companies permissible under the 'Automatic Route' of RBI.
- Approvals are given under single window clearance.
- Project costing less than Rs. 100 million investment are cleared by local STPI Authorities.
- EHTP units are exempted from Corporate Income Tax till 2010.
- EHTP unit is a duty free bonded area under section 65 of the Customs Act, 1962.
- 100% Customs Duty exemption on imports of Capital Goods.
- 100% Excise Duty exemption on indigenous items procurement.
- Import of Capital Goods on outright purchase, loan, free of cost and lease basis is permitted.
- Re-Export of capital goods is permitted.
- Central Sales Tax reimbursement on indigenous items procurement.
- Green card enabling priority treatment for government clearances / other services.
- Sales in the DTA (Domestic Tariff Area) up to 50% of the foreign exchange earned by the EHTP unit.
- Inter Unit Transfer between EOU/STP/EHTP/EPZ is permitted.
- Sub-contracting between EOU/STP/EHTP/EPZ is permitted.
- Simplified Net Foreign Exchange Earnings (NFEP) & Export Performance (EP) norms, as applicable at the time of signing EHTP agreement.
- Simplified depreciation norms on Capital Good.
Single Window Clearance Services
- Registration under EHTP Scheme. On approval, a Letter of Permission (LoP) shall be issued with an initial validity of 3 years, by which time unit should have commenced production. Once unit commences production, LoP issued shall be valid for a period of 5 years for its activities.
- Approvals for duty free Imports including Second Hand Capital Goods.
- Approval for Excise Duty exemption for procurement of Indigenous Capital Goods.
- Green Card issuance.
- Attestation of Software Export Declarations.
- Re-export of Capital goods imported on loan basis as well as Repair/Replacement.
- Shift / Inter Unit Transfer of capital goods.
- Permission for Capital Structure Refinement and Project Expansion.
- Permission for Change of Company Name and Location.
- Reimbursement of the CST paid on Domestic Purchases.
- Approval for Sub-contracting.
- DTA Sales permission.
- De-bonding of equipments.
- Renewal of Letter of Permission (LoP) for a period of 5 years at a time.
- Exit from scheme as per policy provision.