Clearance of goods manufactured on Jobwork basis from the premises of lob worker – Procedure

[SNEHAL SHAH]

R/sir,

We are Manufacturing of  Excisable goods, our plant located at Gujarat (Surat) , we have received one order from Maharashtra “X” company Invalidation against EPCG 3% . Now we want to send material for job work at one 100% EOU “Y” Company at Gujarat under job work RULE 4(6) of the  Cenvat Credit Rule, 2004 & 'TRADE N0TICE NO. 09/2007  (Clearance of goods manufactured on Job work basis  from the premises of lob worker – Procedure.

Now My question is that :

• As per above Rules and Trade notice can we send a material directy from job work premises ( 100% EOU ) to DTA ( Maharastra state ) directly .
• Can I get EPCG benefit Invalidation against EPCG licence 3 %. i.e. benefit of TED refund .

Please give your valuable reply on Urgently .

For above matter advance thanks to u sir .

With REgards,

SNEHAL SHAH

[Nagabhushan Bhushan]

Dear Madam,

 

1) As per Chapter 6.14 of Foregin Trade Policy allows for the 100% EOU to send the goods for job work process and also Chapter  6.20.1 of Hand book of procedures states the procedures for the same.

2) As per the Chapter 6.20.1 of Hand Book of Procedures the 100% EOU can send goods for job work process but the condition that the goods must be received back into the premises of EOU within 90 days from the date of removal.

3) In addition to above the before sending the goods for job work the EOU should obtain the poermission from the customs authorities to send the goods for job work.

I hope above reply is sufficent for your query.

 

AI Summary

Job work clearance from export-oriented unit requires goods' return to the unit and customs permission under handbook procedures. An export oriented unit may send goods to a job worker for processing, but the processed goods must be received back into the export oriented unit within a specified limited period from removal, and prior permission from customs authorities is required before sending the goods for job work; the guidance is referenced to the Foreign Trade Policy and the Handbook of Procedures, and no definitive position on EPCG benefits is given.