Job work with three party

[Guest]

Hi, We are 100% eou and would like to work under Job work My issue is this we are sending the material to A for mfg of intermediate out of the process ML will generate that ML will be send by A to B for Recovery and after recovery it will return back to A with recovered material alongwith balance ML. A will us the reacovered material in our process and after that intermediaetwill return back to me along with all material including ML can we do this proceudre under central excise procedure, NOtification Circular or any other procedure by 100% EOU pl advice Regards Hemant M

[Surender Gupta]

While getting permission from the concerned Jurisdictional AC/DC, you need to provide all the details. Though the sub-contracting (job work) is allowed As per para 6.14 of FTP and circulars issued under customs, but there is no specific provision for sending goods from one job worker to another outside EOU. Morevoer there is no restriction also for sending material from one job worker to another. Therefore, you need to take permission from the AC/DC disclosing the details and circumstances.

AI Summary

Job work subcontracting: permission required for cross-job-worker movement; disclose details to jurisdictional officer and obtain approval. Sub-contracting under the Foreign Trade Policy and customs circulars permits job work generally, but no specific provision governs sending goods from one job worker to another outside the EOU. Therefore the practical requirement is to obtain permission from the jurisdictional assessing officer and disclose the full sequence of operations, including handling of recovered material and manufacturing losses, to ensure procedural compliance.