SEZ Rule 41: Subcontracting Production Allowed with Approval; No Permission Needed Within Same SEZ if Proper Accounts Kept.
Rule 41 of the SEZ Rules allows a unit to subcontract part of its production or processes to various units, including those in the Domestic Tariff Area, Special Economic Zones, Export Oriented Units, or technology parks, with prior annual permission from the Specified Officer. No permission is required if subcontracting occurs within the same SEZ, provided proper accounts are maintained. Developers or co-developers may also temporarily remove duty-free goods for subcontracting with prior approval and conditions set by the Approval Committee.