TaxTMI 
TaxTMI 
Permission to send out goods for job work by EOUs/EPZ/STP/EHTP/SEZ Units– Reg
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....sed by some unscrupulous units, thus causing loss of revenue to the exchequer. In the newly announced EXIM Policy and Handbook of Procedures, certain changes were made in this regard to plug the loopholes. Subsequently, it has been represented to the Board that the newly introduced provisions relating to sub-contracting, viz. the requirement of first stage processing, and the job-worker being a Central Excise registrant have created certain difficulties for EOUs and EPZ/SEZ/STP/EHTP units. 2. The matter has been examined by the Board. Having regard to the difficulties being faced by the EOUs/EPZ/SEZ/STP/EHTP units as also taking revenue interests into account, it has been decided to streamline the procedures relating to sub-contracting / j....
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....s by the said units should be studied and it should be ensured that there is no attempt to parcel out the substantial manufacturing operations outside the bonded premises. (c) In the context of activity that is permitted to be carried out on job-work basis outside the premises of EOUs /EPZ /STP/EHTP/SEZ units, it should be possible to establish the identity of finished products received after job work with the raw materials/components/ partially processed goods sent out. This is necessary to ensure that the finished products are manufactured out of raw materials imported/ procured duty free by the units and there is no substitution/diversion of duty free goods in the DTA. (d) The units sending out goods for job work in DTA shall be requ....
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....arantee as security along with B-17 bond, and the same is sufficient to cover the duty payable on such goods being taken out, no fresh or additional bank guarantee shall be insisted upon. But, in cases where only surety is given at the time of execution of B-17 bond or the security given along with B-17 bond is not sufficient to cover the duty payable on such goods being taken out, the unit shall be required to furnish bank guarantee equal to 50% of the duty payable on goods being sent out for job work. The status holder EOUs and the status holder units in EPZ/STP /EHTP/SEZ having unblemished track record shall be exempt from the requirement of furnishing bank guarantee. (g) In all cases of job work in DTA, the goods sent out for job work....
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....worker’s premises shall not be allowed through third parties. A sample of goods exported from the job-worker’s premises shall be sent to the Customs /Central Excise in charge of the parent unit for checking whether the goods supplied by the unit has been utilised by the job worker in the product under export. Scrap, waste or remnants generated during the processing shall be either returned to the unit or may be cleared from job-worker’s premises on payment of applicable duty. (This will apply only when job worker is in DTA). (j) The EOUs and units in EPZ/STP/EHTP/SEZ may be permitted to remove moulds, jigs, tools, fixtures, tackles, instruments, hangers and patterns and drawings to the premises of the sub contractor subject to the c....