30 August 2007
Whether a DTA Unit in India can import Goods (i.e. Rough Diamonds) for Job Work and export it back to the party? If yes, please let us know the provisions and procedures applicable under various laws & acts of our country.
24 September 2008
Circular has explained that it has been decided to exempt EOUs/EHTP/STP units, which are in existence for the last 3 years with unblemished track record and have export turnover of Rs. 5 crore or above, from furnishing Bank Guarantee or surety along with B-17 Bond, or for sending goods for job work. Please also refer to Paragraph 6.12 (f) of Foreign Trade Policy.
It is a major change which has been brought about in the Foreign Trade Policy and implemented now by the Department of Revenue. In all the Open Houses organized by EPCES at Kandla, Kolkata and Cochin, EOUs has raised this issue as this was leading to transaction cost. With the exemption from bank guarantee it will help in reducing transaction cost of the EOUs considerably.
CAclubindia
