Job work to SEZ from a 100% EOU unit

[raj nadh]

Dear Experts,

We, a 100% EOU unit manufacturing some products. We would like to give our semi-finished product to a SEZ unit for polishing on job work basis and get back to our unit for make it a finished good after completion of the polishing work.

So please tell me the procedure and necessary documents required for this entire process.

Thank you.

Anand

[PAWAN KUMAR]

For the purpose of sub-contracing into DTA unit, an EOU seek annual sub-contracting permission from the customs authorities as per para 6.14 of FTP 2009-14. Procedure is as follows :

1.Consent and undertaking by DTA unit on their letter head.

2.Submit application to customs authorities along with consent and undertaking for obtaining annual sub-contracting permission.

3.After obtaining permission, forward a copy of subject permission to DTA unit.

4.Prepare job work challan in form of A B Challan

5.Entry in stock ledger (Job work register for sending goods for job work)

6.After processing DTA unit will prepare the CDE challan along with their bill for job work charges.

7.Account for the processed goods into your unit and also mark the entry in job work register.

as per my view the following is the procedure.

[raj nadh]

Dear Sir,

Thank you for quick reply.

1. we are giving job work to a SEZ unit. Is SEZ unit and a DTA unit both are same in this case ?

2. what is A B challan form ?

Anand

[PAWAN KUMAR]

1. Provision for sub-contracting are same whether it is an DTA or SEZ.

2.A B Challan form is basically the job work challan form under cover of which the EOU send the goods for sub-contracting into DTA.

AI Summary

Sub contracting permission required: EOU must obtain annual customs approval before sending goods to SEZ for job work.
Sending semi finished goods from a 100% EOU to a SEZ for job work requires obtaining Annual Sub contracting Permission from customs based on a consent and undertaking from the recipient. After permission, the EOU forwards a copy to the recipient, dispatches goods under an AB Challan, records the transaction in the job work register, and, upon return, accounts for processed goods while the contractor issues a CDE challan with its job work bill.