9.22

EOU/EPZ/EHTP/STP units may sell in the DTA rejects as per paragraph 9.9(a) of the Policy subject to the following conditions:

(a)The term ‘rejects’ shall cover the products which have definite manufacturing defects and are not exportable as per declaration of the unit concerned and shall include sub-standard products, but not spares, tools, waste/scrap/remnants and by-products.

(b)The following parameters shall be kept in view for determining ‘rejects’.

(i)The unit must certify that the rejects were an unavoidable feature on account of flaws of technology, technique or material deployed in manufacture.

(ii)‘Rejects’ must be invoiced and stamped by the manufacturer as ‘Rejects’ at the time of clearance into the Domestic Tariff Area.