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of <h1>EOUs Can Subcontract Up to 50% of Production to DTA Units with Customs Approval; Gems & Jewellery Rules Apply</h1> Export Oriented Units (EOUs), including Gems and Jewellery units, can subcontract production processes to Domestic Tariff Area (DTA) units, up to 50% of the previous year's production value, with customs authority approval. They may also subcontract to other EOUs or Special Economic Zone (SEZ) units and even abroad, with necessary permissions. EOUs can perform job work for DTA exporters, allowing the DTA unit to claim duty drawback. Gems and Jewellery EOUs must return subcontracted goods within 90 days and adhere to specific conditions on materials used. DTA units involved in subcontracting are not eligible for deemed export benefits.
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