6.15

Sub-contracting by EOU/EPZ units shall be subject to the following conditions:-

(a) EOU/ EPZ/ EHTP units may be permitted to remove moulds, jigs, tools, fixtures, tackles, instruments, hangers and patterns and drawings to the premises of the sub contractors subject to the conditions that these shall be brought back to the bonded premises of EOU/ EPZ/ EHTP unit on completion of the job work within a stipulated period.

(b) Export of finished good directly from the job worker’s premises may be permitted provided the job worker’s premises is registered with the Central Excise authorities. However, export of such products from the job worker’s premises shall not be allowed through third parties as provided under paragraph 6.10 of the Policy.

[OLD -
a) The job-worker’s unit in the DTA shall be Central excise registrant;

b) Goods shall be allowed to be sent out for subcontracting of production process only after initial processing;

c) The goods after the jobwork shall be brought back to the unit within the period as may be allowed by the Assistant Commissioner/ Deputy Commissioner of Customs.

d) The samples of the goods sent for subcontracting shall be drawn and sent in advance to the jurisdictional Customs or Central Excise authorities of the sub-contractor in DTA. Howver, this will not be required in case the sub-contracting is done through another unit in the same EPZ.

e) Export finished goods directly from the job worker’a premises may be permitted. However, export of such products from the job worker’s premises shall not be allowed through third parties as provided under paragraph 6.10 of the Policy;

f) EOU/EPZ/EHTP units may be permitted to remove moulds, jigs, tools, fixtures, tackles, instruments, hangers and patterns and drawings to the premises of sub contractors subject to the condition that these shall be brought back to the bonded premises of EOU/EPZ/EHTP unit on completion of the job work within a stipulated period. ]

Contract farming

(c) EOUs in agriculture/horticulture engaged in contract farming may on the basis of annual permission from the Customs authorities take out inputs and equipments to the DTA farm subject to the following conditions:

i) Supply of inputs by the EOU to the contract farm(s) shall be subject to the input-output norms notified by the Directorate General of Foreign Trade.

ii) There shall be contract farming agreement between the EOU and the DTA farmer(s);

iii) The contract farm(s) shall be within the jurisdiction of the same Commissioner of Customs/Excise under whose jurisdiction the unit is registered.

iv) The unit has been in existence for at least two years and engaged in export of agriculture/ horticuture products;
otherwise it shall furnish bank guarantee equivalent to the duty foregone on the capital goods/inputs proposed to be taken out to the Assistant Commissioner of Customs/ Central Excise till the unit completes two years.

(In para 6.15 (a) to (f) Corrected & (g) has been renumbered as (c) vide PN No. 21/2002, Dt. 01/07/2002)