Sub-Contracting

6.21.5

In case of sub-contracting of production process abroad, goods may be exported from sub-contractor premises subject to conditions that at the time of clearance of goods, the EOU/EHTP/BTP/STP shall declare (i) the transaction value of the finished goods to be cleared from the sub-contractor’s premises abroad; (ii) job work charges to be paid to the sub-contractor abroad; and (iii) value of intermediate goods, supported with documents like (a) sale price contract/or invoice for the finished goods, (b) job work contract and (c) the basis of arriving at the value of intermediate goods. The EOU/EHTP/BTP/STP shall also ensure full repatriation of foreign exchange declared as the transaction value of the finished goods cleared from the sub-contractor’s premises abroad.

(Above Para 6.21.5 has been amended vide PN. NO. 40/2008, DT. 04/07/2008)

[OLD-
6.21.5

In case of sub-contracting of production process abroad, goods may be exported from sub-contractor premises subject to conditions that job work charges shall be declared in export declaration forms, invoices etc. and full repatriation of foreign exchange.]