Sub-Contracting

6.21.1

Sub-contracting by EOU gems and jewellery units through other EOUs or SEZ Units or units in DTA shall be subject to following conditions:-

(a) Goods, finished or semi finished, including studded jewellery, taken out for sub- contractingshall be brought back to the unit within 90 days.

(b) No cut and polished diamonds, precious and semiprecious stones (except precious, semi-precious and synthetic stones having zero duty) shall be allowed to be taken out for sub-contracting.

(c) Receive plain gold/silver/platinum jewellery from DTA/ EOU/SEZ units in exchange of equivalent quantity of gold/silver/ platinum, as the case may be, contained in the said jewellery.

(d) EOUs shall be eligible for wastage as applicable as per para 4A.2 of Handbook for sub-contracting and against exchange.

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