100% E.O.U

[Guest]

Dear sir

I would like to have one query. Whether 100% E.O.U can receive the rawmaterial from another 100% EO.U free of cost of rawmaterial and process the same for job work in their bonded E.O.U premises using their machinery and the same be finsihed goods to the sender of EOU company who sends the material to 100% eou for job work. the export will be done from sender unit. In this case whether receiving jobwork unit has to pay rawmaterial for central excise duty please clarify. Since the job work who is going to do is an EOU and helping other eou unit for processing their goods. please clarify.

[Rajagopalan Ranganathan]

Sir,

Please go through Notification No. 53/2003-CUS dated 31.3.2003 and 22/2003-CE dated 31.3.2003 for detailed procedure in respect of sub-contracting (job work) in respect of EOUs. Normally, one EOU unit may, on the basis of records maintained by it, sub-contract both its production and production process without any limit through other EOU units.

[Guest]

Sir, EOU can job work for another EOU or DTA. Job work rule is general for all unit. Job worker EOU is not required to pay Excise duty for receiving raw material for doing job work.

[Suryanarayana Sathineni]

Dear Friend,

You may also refer Para 6.14 of FTP for more clarity on job-work

Best Regards

Suryanarayana

AI Summary

EOUs Can Subcontract Without Paying Excise Duty on Raw Materials for Job Work; Check Relevant Foreign Trade Policy Sections. An individual inquired whether a 100% Export Oriented Unit (EOU) can receive raw materials from another EOU without cost, process them for job work, and return the finished goods to the sender EOU, with the export being handled by the sender. The query focused on whether the receiving EOU must pay central excise duty on the raw materials. Respondents clarified that EOUs can subcontract production without excise duty on received raw materials for job work, referencing relevant notifications and suggesting consulting specific sections of the Foreign Trade Policy for further details.