(a) (i) EOU / EHTP / STP / BTP units, including gems and jewellery units, may on the basis of annual permission from Customs authorities, subcontract production processes to DTA through job work which may also involve change of form or nature of goods, through job work by units in DTA.
(b) (i) EOU may, with annual permission from Customs authorities, undertake job work for export, on behalf of DTA exporter, provided that goods are exported directly from EOU and export document shall jointly be in name of DTA / EOU. For such exports, DTA units will be entitled for refund of duty paid on inputs by way of brand rate of duty drawback.
Further please see the para 6.12 (e)of foreign trade policy 2009-2014
Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA, where unit has (i) a turnover of Rs. 5 crores or above; (ii) unit is in existence for at least three years; and (iii) The unit: (a) has achieved positive NFE / export obligation wherever applicable; (b) has not been issued a show cause notice or a confirmed demand, during the preceding 3 years, on grounds other than procedural violations, under the penal provision of the Customs Act, the Central Excise Act, the Foreign Trade (Development & Regulation) Act, the Foreign Exchange Management Act, the Finance Act, 1 994 covering Service Tax or any allied Acts or the rules made thereunder, on account of fraud / collusion / willful mis-statement / suppression of facts or contravention of any of the provisions thereof;
03 February 2015
I have gone through the above and found one of the condition that export should be made directly from eou and document filed jointly. Is there any provision in which an eou can utilize their spare capacity by doing job work for outsider and return goods him.
CAclubindia
