Sub-contracting of Production or production Process by EOU to DTA unit and Job-working by EOU for DTA unit.

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ehouses under section 58 of the Customs Act, 1962 as well as permitted to undertake manufacturing activity in bonded premises under section 65 of the Customs Act, 1962 . It is not always possible or feasible for the EOUs to have facility to carry out all the parts of the production process in the bonded warehouse. For the purpose of carrying out that process, the unit may require removal of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... mport thereafter. Conversely, EOUs are allowed to undertake job work activities on behalf of DTA unit for the purpose of export. Para 6.14 of the FTP also provides that the EOUs may also sub-contract the entire production in DTA upto the limit of 50% FOB value of exports. However, this does not imply that EOUs can sub-contract its production into DTA regularly. This facility has been extended s .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... verning duty free import/procurement by EOUs respectively. Further, in order to facilitate the activity of job work, CBEC vide Circular No.65/2002-Customs, dated 07.10.2002 has prescribed detailed procedure required to be followed by EOUs for sending raw materials/in-process goods in DTA for job work. The CBEC Circular also provides that facility of job work does not mean that the EOUs .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X