A 100% Export oriented unit is an industrial unit offering for export its entire production excluding permitted levels of Domestic Tariff Area (DTA).

The Government of India has decided to give such units certain concessions to enable them to meet the rigours of foreign demand in terms of pricing, quality, precision, etc.

A scheme to facilitate the setting up of 100% Export Oriented Units was framed by the Government, vide resolution dated 31st December, 1980 (subsequently amended vide resolution dated the 21st November, 1983).