Spinning, weaving and finishing of textiles

Under the manufacturing classification, the entity must demonstrate substantial transformation of raw materials into finished textiles. Forensic focus will be on the 'Processing of goods or materials' clause. If the entity merely imports and sells without spinning or weaving, it reverts to 'Distribution of goods' which requires a Designated Zone and a Qualifying Customer to maintain 0% status.

Audit Red Flag

Re-characterization of 'Trading' as 'Manufacturing' where only minor packaging or labeling occurs without substantial transformation of the textile fibers.

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