(a). SEZ unit, may subcontract a part of their production or production process through units in the DTA or through other SEZ/EOU/EPZ/EHTP/STP with the permission of Customs authorities. Subcontracting of part of production process may also be permitted abroad with the approval of the Board of Approval.

(b). Subcontracting by SEZ gems and jewellery units shall be subject to following conditions :-

(i). Goods, finished or semi-finished, including studded jewellery, containing quantity and purity equal to the gold/ silver/platinum so taken out, shall be brought back to the Zone within 30 days. Further, no diamond, precious or semi-precious stones shall be allowed to be taken out of the Zone for sub-contracting.

(ii). Receive plain gold/silver/platinum jewellery from DTA in exchange of gold/silver/platinum of equal quantity and purity.

(iii). SEZ units shall not be eligible for wastage or manufacturing loss against the jewellery received from DTA after processing as mentioned in (i) and against exchange of gold/silver/ platinum as mentioned in (ii).

(iv). The DTA unit undertaking job work or supplying jewellery against exchange of gold/silver/platinum shall not be entitled to deemed export benefits.

(c). All units, including gem and jewellery, may sub-contract part of the production or production process through other units in the same SEZ without permission of Customs authorities subject to records being maintained by both the supplying and receiving units.

(d). SEZ units other than gems and jewellery units may be allowed to undertake job-work for export, on behalf of DTA exporter, provided the finished goods are exported direct from SEZ units. For such exports, the DTA units will be entitled for refund of duty paid on the inputs by way of Brand Rate of duty drawback.

(e). Scrap/waste/remnants generated through job work may either be cleared from the job worker"s premises on payment of applicable duty or returned to the unit.

(Please see Cir No.31/2001 Cus dt.24/05/2001)