Sub contracting of a EOU material by a DTA to another DTA

[R S Simha]

Our Unit is registered under EOU . We are subcontracting 20 % of the total manufacturing operations to 2 DTA . Currently after the first operation of the goods by the first sub contractor the goods come back to EOU and again we are sending the semi finished goods to second DTA subcontractor for further processing and receive back to EOU . This structure has a impact on the increase In the logistics cost & increasing the manufacturing lead time . Hence is there provision for the first subcontractor after processing the goods sends the semi finished goods to second sub contractor directly and the after second sub contractor completes the operation the semi finished goods comes back to EOU .

AI Summary

EOU Seeks Approval to Streamline Subcontracting by Directly Transferring Goods Between DTA Subcontractors to Cut Costs and Time. A unit registered under an Export Oriented Unit (EOU) is subcontracting 20% of its manufacturing operations to two Domestic Tariff Area (DTA) subcontractors. Currently, goods are processed by the first subcontractor, returned to the EOU, and then sent to the second subcontractor, which increases logistics costs and lead time. The query seeks to streamline this by allowing the first subcontractor to send goods directly to the second subcontractor before returning them to the EOU. The response suggests obtaining permission from the Development Commissioner to implement this change.