jobwork by sez

[Asked by Guest]

Sir

Please clarify whether a SEZ unit can import goods for jobwork/correction and re-Export it. what is the procedure to be followed in the documentation/aprovals

[Rajagopalan Ranganathan]

Sir,

There are provisions in SEZ Act and the rules made thereunder for sub-contracting manufacturing process to DTA unit by SEZ Developer or unit. (Rule 41 of SPECIAL ECONOMIC ZONES RULES, 2006) and there is procedure for sub-contracting in Domestic Tariff Area or in a Unit in other Special Economic Zones or in Export Oriented Unit or in Electronic Hardware Technology Park unit or in Software Technology Park Unit or Bio-technology Park Unit or sub-contracting abroad. However there is no prescribed procedure for carrying out job work on imported goods and for re-export of the same.

In my opinion since the goods are imported for job work and re-exported after job work it do not require any permission since SEZ Developer/unit can import /export any goods without payment of customs duties.

[KASTURI SETHI]

This query has been posted again. I agree with the views of Sh.Ranganathan Sir. The definition of 'manufacture' provided under SEZ Act includes repair also.

For proper procedure (latest), approach SEZ Officer (Asstt.Commissioner) in charge of your unit. You will get latest information as internal correspondence is not available here. Your visit to SEZ Officer will be very useful.

[KASTURI SETHI]

Also see Notification No.158-Customs/1995 dated 14.11.1995 as amended vide Notification Nos. 34/2010-Cus. dated 16-03-2010, 60/2012-Cus. dated 06-12-2012, 43/2017-Cus. dated 30-06-2017 and 60/2018-Cus. dated 11-09-2018

Dear sir

Thanks for the reply. can you please elaborate an example of how it should be done.

[KASTURI SETHI]

Regarding procedure you should visit the office of SEZ Officer(Asstt.Commissioner) incharge SEZ Unit). You will get correct advice there.

[Raghunandhaanan rvi]

Sir,

If LOA provides job work as authorized operations of the SEZ unit, job work can be done

by SEZ unit . Otherwise specific approval from Development Commissioner of SEZ is required for such activities

AI Summary

SEZ job work authorisation: perform imported goods processing if LOA permits, otherwise seek Development Commissioner approval.
SEZ rules permit sub contracting of manufacturing (including repair) to specified units and developers/units may import and export goods without customs duty; if job work is authorised in the LOA the SEZ unit may perform it, otherwise specific approval from the Development Commissioner is required. There is no uniform prescribed procedure for job work on imported goods with re export in the cited materials; units must consult the SEZ Officer for current procedural guidance and applicable customs notifications.