PUBLIC NOTICE NO. 40/2008, DT. 04/07/2008

Amends Para 6.21.5 - Sub-Contracting

In exercise of power conferred under paragraph 2.4 of the Foreign Trade Policy 2004-09, the Director General of Foreign Trade hereby makes the following amendments in the Handbook of Procedures (Vol.I):

Para 6.21.5 of HBP shall be amended to read as:

“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.”

This issues in Public interest

Sd/-

(R.S.GUJRAL)
DIRECTOR GENERAL OF FOREIGN TRADE
EX-OFFICIO ADDITIONAL SECRETARY TO THE GOVT OF INDIA

(Issued from file No F.No. 01/92/180/143/AM08/PC-VI )

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