Both provide duty-free import benefits and require export orientation, but they operate under different legal frameworks. SEZs are governed by the SEZ Act 2005 and enjoy deemed-foreign-territory status; EOUs operate within Indian customs territory under the Customs Act and FTP 2023 on a bond-based mechanism. The administrative authority also differs — Development Commissioner for both, but SEZ has a separate Approval Committee structure. CBLE tests this distinction directly in comparative scenario questions.

EOU units may import capital goods, raw materials, components, consumables, packing materials, and spares duty-free under a bond with security. The bond guarantees that the imported goods will be used for the approved export purpose and that the NFE obligation will be fulfilled. Goods not so used attract duty recovery with interest. CBLE tests the coverage of the duty-free benefit — particularly whether consumables and spares qualify — and the bond enforcement mechanism.

An EOU is entitled to sell up to 50% of its FOB export value into the DTA, subject to payment of applicable customs duty on a concessional basis — typically the duty applicable to similar goods under the relevant customs notification. DTA sales beyond the 50% entitlement attract full customs duty. CBLE tests the 50% entitlement calculation, the duty rate applicable on DTA sales, and the GST treatment of those sales.

De-bonding is the process by which capital goods imported duty-free under the EOU bond are released from the bond obligation — typically when the unit exits the EOU scheme, closes down, or converts to a DTA operation. Duty is payable on the de-bonded capital goods at the rate applicable on the date of de-bonding, on the depreciated value of the goods. The depreciation formula, the applicable duty rate, and the procedural steps for de-bonding are CBLE-tested details.

STP, EHTP, and BTP are sector-specific variants of the EOU scheme tailored for software, electronics hardware, and biotechnology units respectively. They share the same core customs framework — duty-free imports under bond, NFE obligation, DTA sale provisions — but are administered through sector-specific designated authorities and have some sector-tailored provisions. CBLE tests the family relationship and the common customs framework rather than deep sector-specific differences.