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of <h1>EOUs Can't Subcontract Raw Material Conversion to DTA Units as Job Work, Clarifies Ministry Circular.</h1> The circular addresses the issue of 100% Export Oriented Units (EOUs) subcontracting part of their production for job work to units in the Domestic Tariff Area (DTA). It clarifies that transferring raw materials from a 100% EOU to a DTA unit for conversion into briquettes does not qualify as job work under the relevant public notice. The Ministry of Finance and the Ministry of Commerce agree that such transfers are outside the scope of permissible subcontracting, as they could lead to accountability issues and potential substitution of materials. The circular emphasizes the need for EOUs to undertake some manufacturing processes themselves before subcontracting.
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