Sub Contract of SEZ by a 100%EOU

This query is : Resolved

Samir Banerjee (Querist)
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16 May 2009 We have been facing a peculiar problem. We a 100% EOU undertaking job work for SEZ as per Rule 41 & 42 of SEZ Rules 2006. The SEZ is sending entire raw material, consumbales & packing material to us for job work in original packing.

We after processing the material repacking the finished goods in seperate packing boxes which are sent by SEZ and then processed goods sent back to SEZ.

We want to sale the unused (un recyclable) packing material directly from EOU unit into DTA without payment of duty. But the Specified Officer of SEZ not allowing with the ground that there is no such provision. We have no other option except to send back entire un used packing material back to SEZ. which will finally be sold duty free from there.

We are unncessary bearing the extra cost of freight merely on the ground that there is no provision in SEZ Rule. Please let us have your view point and suggestion to come out from this problem.

rajula gurva reddy

rajula gurva reddy (Expert)
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23 February 2013 You may apply to the Development Commissioner of the concerned SEZ and sought permission to clear the scrap from the premises of EOU subject to the condition that if the scrap is dutiable, concerned customs duties have to be paid by the EOU.