Other manufacturing

Under ISIC 32, the entity must demonstrate 'Substantial Transformation' of raw materials into new products. Forensic auditors will scrutinize the production process flow, utility consumption (industrial power), and the ratio of direct labor to verify that the activity is not merely a procurement and resale operation (Trading), which would be an Excluded Activity if conducted with non-Free Zone persons.

Audit Red Flag

Misclassification of 'Simple Assembly' or 'Repackaging' as 'Manufacturing' to bypass the Excluded Activity restrictions on third-party distribution.

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