STP - MEMBERS' GUIDE >> STP UNITS

SUB-CONTRACTING

Sub-contracting by STP Units is allowed as per the provision of the EXIM policy in the following cases:

Part of production process through job work in DTA on the basis of annual permission from the custom authority.

Upto 50% of over all production of the previous year in value terms for job work in DTA with the permission of custom authority.

Sub-contracting by STP Units is allowed as per the provision of the EXIM policy in the following cases:

	Part of production process through job work in DTA on the basis of annual permission from the custom authority.
	Upto 50% of over all production of the previous year in value terms for job work in DTA with the permission of custom authority.
	Both production and production process without any limit through other EOU/EPZ/STP/SEZ on the basis of records maintained in the unit.
	Part of production process abroad with approval of IMSC.

Permission for sub-contracting the job-work will require the following documents to be produced:

	An application giving details of Sub-contracting.
	A letter from the contractor accepting the job work.
	Purchase order / Agreement copy of the contractor.
	A Disclaimer’s Certificate confirming the foregoing of the export benefit by one unit in favour of the other unit, as certified by the Statutory Auditor of the issuing unit.