diff --git a/src/STEPCAFControl/STEPCAFControl_Reader.cxx b/src/STEPCAFControl/STEPCAFControl_Reader.cxx
index c665002077..c3f308ed92 100644
--- a/src/STEPCAFControl/STEPCAFControl_Reader.cxx
+++ b/src/STEPCAFControl/STEPCAFControl_Reader.cxx
@@ -306,16 +306,6 @@ TCollection_AsciiString AddrToString(const TopoDS_Shape& theShape)
 }
 #endif
 
-//=======================================================================
-//function : AllocateSubLabel
-//purpose  :
-//=======================================================================
-
-static TDF_Label AllocateSubLabel(TDF_Label& theRoot)
-{
-  return TDF_TagSource::NewChild(theRoot);
-}
-
 //=======================================================================
 //function : STEPCAFControl_Reader
 //purpose  : 
@@ -4354,7 +4344,7 @@ Standard_Boolean STEPCAFControl_Reader::ReadViews(const Handle(XSControl_WorkSes
 //=======================================================================
 
 TDF_Label STEPCAFControl_Reader::SettleShapeData(const Handle(StepRepr_RepresentationItem)& theItem,
-                                                 TDF_Label& theLab,
+                                                 const TDF_Label& theLab,
                                                  const Handle(XCAFDoc_ShapeTool)& theShapeTool,
                                                  const Handle(Transfer_TransientProcess)& TP) const
 {
@@ -4373,7 +4363,9 @@ TDF_Label STEPCAFControl_Reader::SettleShapeData(const Handle(StepRepr_Represent
     return aResult;
 
   // Allocate sub-Label
-  aResult = AllocateSubLabel(theLab);
+  aResult = theShapeTool->AddSubShape(theLab, aShape);
+  if (aResult.IsNull())
+    return aResult;
 
   TCollection_AsciiString aName = hName->String();
   TDataStd_Name::Set(aResult, aName);
@@ -4382,6 +4374,34 @@ TDF_Label STEPCAFControl_Reader::SettleShapeData(const Handle(StepRepr_Represent
   return aResult;
 }
 
+//=======================================================================
+//function : collectRepresentationItems
+//purpose  : recursive collection of representation items for given representation 
+//           with all representations, related to it.
+//=======================================================================
+
+void collectRepresentationItems(const Interface_Graph& theGraph,
+                                const Handle(StepShape_ShapeRepresentation)& theRepresentation,
+                                NCollection_Sequence<Handle(StepRepr_RepresentationItem)>& theItems)
+{
+  Handle(StepRepr_HArray1OfRepresentationItem) aReprItems = theRepresentation->Items();
+  for (Standard_Integer itemIt = aReprItems->Lower(); itemIt <= aReprItems->Upper(); itemIt++)
+    theItems.Append(aReprItems->Value(itemIt));
+
+  Interface_EntityIterator entIt = theGraph.TypedSharings(theRepresentation, STANDARD_TYPE(StepRepr_RepresentationRelationship));
+  for (entIt.Start(); entIt.More(); entIt.Next())
+  {
+    Handle(StepRepr_RepresentationRelationship) aRelationship = Handle(StepRepr_RepresentationRelationship)::DownCast(entIt.Value());
+    if (aRelationship->Rep1() == theRepresentation)
+    {
+      Handle(StepShape_ShapeRepresentation)
+        aRepr = Handle(StepShape_ShapeRepresentation)::DownCast(aRelationship->Rep2());
+      if (!aRepr.IsNull())
+        collectRepresentationItems(theGraph, aRepr, theItems);
+    }
+  }
+}
+
 //=======================================================================
 //function : ExpandSubShapes
 //purpose  :
@@ -4432,24 +4452,29 @@ void STEPCAFControl_Reader::ExpandSubShapes(const Handle(XCAFDoc_ShapeTool)& Sha
       continue;
 
     // Access representation items
-    Handle(StepRepr_HArray1OfRepresentationItem) aReprItems = aShapeRepr->Items();
+    NCollection_Sequence<Handle(StepRepr_RepresentationItem)> aReprItems;
+    collectRepresentationItems(Graph, aShapeRepr, aReprItems);
 
-    if ( aReprItems.IsNull() )
+    if (aReprItems.Length() == 0)
       continue;
 
     if ( !ShapeLabelMap.IsBound(aRootShape) )
       continue;
 
     TDF_Label aRootLab = ShapeLabelMap.Find(aRootShape);
+    // Do not add subshapes to assembly,
+    // they will be processed with corresponding Shape_Product_Definition of necessary part.
+    if (ShapeTool->IsAssembly(aRootLab))
+      continue;
 
     StepRepr_SequenceOfRepresentationItem aMSBSeq;
     StepRepr_SequenceOfRepresentationItem aSBSMSeq;
 
     // Iterate over the top level representation items collecting the
     // topological containers to expand
-    for ( Standard_Integer i = aReprItems->Lower(); i <= aReprItems->Upper(); ++i )
+    for (Standard_Integer i = 1; i <= aReprItems.Length(); ++i)
     {
-      Handle(StepRepr_RepresentationItem) aTRepr = aReprItems->Value(i);
+      Handle(StepRepr_RepresentationItem) aTRepr = aReprItems.Value(i);
       if ( aTRepr->IsKind( STANDARD_TYPE(StepShape_ManifoldSolidBrep) ) )
         aMSBSeq.Append(aTRepr);
       else if ( aTRepr->IsKind( STANDARD_TYPE(StepShape_ShellBasedSurfaceModel) ) )
@@ -4463,16 +4488,11 @@ void STEPCAFControl_Reader::ExpandSubShapes(const Handle(XCAFDoc_ShapeTool)& Sha
     // Expand Manifold Solid BReps
     for ( Standard_Integer i = 1; i <= aMSBSeq.Length(); ++i )
     {
-      const Handle(StepRepr_RepresentationItem)& aManiRepr = aMSBSeq.Value(i);
-
       // Put additional Label for SOLID
-      TDF_Label aManiLab;
-      if ( doInsertSolidLab )
-        aManiLab = SettleShapeData(aManiRepr, aRootLab, ShapeTool, TP);
-      else
-        aManiLab = aRootLab;
+      if (doInsertSolidLab)
+        SettleShapeData(aMSBSeq.Value(i), aRootLab, ShapeTool, TP);
 
-      ExpandManifoldSolidBrep(aManiLab, aMSBSeq.Value(i), TP, ShapeTool);
+      ExpandManifoldSolidBrep(aRootLab, aMSBSeq.Value(i), TP, ShapeTool);
     }
 
     // Expand Shell-Based Surface Models
@@ -4540,7 +4560,7 @@ void STEPCAFControl_Reader::ExpandShell(const Handle(StepShape_ConnectedFaceSet)
                                         const Handle(XCAFDoc_ShapeTool)& ShapeTool) const
 {
   // Record CAF data
-  TDF_Label aShellLab = SettleShapeData(Shell, RootLab, ShapeTool, TP);
+  SettleShapeData(Shell, RootLab, ShapeTool, TP);
 
   // Access faces
   Handle(StepShape_HArray1OfFace) aFaces = Shell->CfsFaces();
@@ -4549,7 +4569,7 @@ void STEPCAFControl_Reader::ExpandShell(const Handle(StepShape_ConnectedFaceSet)
     const Handle(StepShape_Face)& aFace = aFaces->Value(f);
 
     // Record CAF data
-    TDF_Label aFaceLab = SettleShapeData(aFace, aShellLab, ShapeTool, TP);
+    SettleShapeData(aFace, RootLab, ShapeTool, TP);
 
     // Access face bounds
     Handle(StepShape_HArray1OfFaceBound) aWires = aFace->Bounds();
@@ -4558,7 +4578,7 @@ void STEPCAFControl_Reader::ExpandShell(const Handle(StepShape_ConnectedFaceSet)
       const Handle(StepShape_Loop)& aWire = aWires->Value(w)->Bound();
 
       // Record CAF data
-      TDF_Label aWireLab = SettleShapeData(aWire, aFaceLab, ShapeTool, TP);
+      SettleShapeData(aWire, RootLab, ShapeTool, TP);
 
       // Access wire edges
       // Currently only EDGE LOOPs are considered (!)
@@ -4573,15 +4593,15 @@ void STEPCAFControl_Reader::ExpandShell(const Handle(StepShape_ConnectedFaceSet)
         Handle(StepShape_Edge) anEdge = anEdges->Value(e)->EdgeElement();
 
         // Record CAF data
-        TDF_Label anEdgeLab = SettleShapeData(anEdge, aWireLab, ShapeTool, TP);
+        SettleShapeData(anEdge, RootLab, ShapeTool, TP);
 
         // Access vertices
         Handle(StepShape_Vertex) aV1 = anEdge->EdgeStart();
         Handle(StepShape_Vertex) aV2 = anEdge->EdgeEnd();
 
         // Record CAF data
-        SettleShapeData(aV1, anEdgeLab, ShapeTool, TP);
-        SettleShapeData(aV2, anEdgeLab, ShapeTool, TP);
+        SettleShapeData(aV1, RootLab, ShapeTool, TP);
+        SettleShapeData(aV2, RootLab, ShapeTool, TP);
       }
     }
   }
diff --git a/src/STEPCAFControl/STEPCAFControl_Reader.hxx b/src/STEPCAFControl/STEPCAFControl_Reader.hxx
index 548a32c5c5..8902c8d43e 100644
--- a/src/STEPCAFControl/STEPCAFControl_Reader.hxx
+++ b/src/STEPCAFControl/STEPCAFControl_Reader.hxx
@@ -222,7 +222,7 @@ protected:
   //! Populates the sub-Label of the passed TDF Label with shape
   //! data associated with the given STEP Representation Item,
   //! including naming and topological information.
-  Standard_EXPORT TDF_Label SettleShapeData (const Handle(StepRepr_RepresentationItem)& theItem, TDF_Label& theLab, const Handle(XCAFDoc_ShapeTool)& theShapeTool, const Handle(Transfer_TransientProcess)& theTP) const;
+  Standard_EXPORT TDF_Label SettleShapeData (const Handle(StepRepr_RepresentationItem)& theItem, const TDF_Label& theLab, const Handle(XCAFDoc_ShapeTool)& theShapeTool, const Handle(Transfer_TransientProcess)& theTP) const;
   
   //! Given the maps of already translated shapes, this method
   //! expands their correspondent Labels in XDE Document so that
diff --git a/src/STEPCAFControl/STEPCAFControl_Writer.cxx b/src/STEPCAFControl/STEPCAFControl_Writer.cxx
index 67ac7f2993..32ea6b0533 100644
--- a/src/STEPCAFControl/STEPCAFControl_Writer.cxx
+++ b/src/STEPCAFControl/STEPCAFControl_Writer.cxx
@@ -671,9 +671,9 @@ Standard_Boolean STEPCAFControl_Writer::Transfer (STEPControl_Writer &writer,
     const Handle(XSControl_TransferWriter) &TW = this->ChangeWriter().WS()->TransferWriter();
     const Handle(Transfer_FinderProcess) &FP = TW->FinderProcess();
 
-    for ( int i = 1; i <= labels.Length(); i++ )
+    for ( int i = 1; i <= sublabels.Length(); i++ )
     {
-      TDF_Label L = labels.Value(i);
+      TDF_Label L = sublabels.Value(i);
 
       for ( TDF_ChildIterator it(L, Standard_True); it.More(); it.Next() )
       {
diff --git a/tests/bugs/step/bug29403 b/tests/bugs/step/bug29403
new file mode 100644
index 0000000000..40794d8d68
--- /dev/null
+++ b/tests/bugs/step/bug29403
@@ -0,0 +1,47 @@
+puts "=========="
+puts "OCC29403"
+puts "=========="
+puts ""
+#########################################################
+# Subshapes names are not imported from step
+#########################################################
+
+param read.stepcaf.subshapes.name 1
+param write.stepcaf.subshapes.name 1
+
+pload DCAF
+
+ReadStep doc [locate_data_file bug29403_ECOR030312.stp]
+set info1 [XStat doc]
+regexp {level N 0 +: +([-0-9.+eE]+)} $info1 full l0
+regexp {level N 1 +: +([-0-9.+eE]+)} $info1 full l1
+regexp {Total number of labels for shapes in the document += +([-0-9.+eE]+)} $info1 full nb
+regexp {Number of labels with name += +([-0-9.+eE]+)} $info1 full nbname
+
+WriteStep doc $imagedir/doc_subshapes.stp
+
+ReadStep after_doc $imagedir/doc_subshapes.stp
+
+set info2 [XStat after_doc]
+regexp {level N 0 +: +([-0-9.+eE]+)} $info2 full l0_1
+regexp {level N 1 +: +([-0-9.+eE]+)} $info2 full l1_1
+regexp {Total number of labels for shapes in the document += +([-0-9.+eE]+)} $info2 full nb_1
+regexp {Number of labels with name += +([-0-9.+eE]+)} $info2 full nbname_1
+
+if { ${l0} != ${l0_1} ||
+     ${l0} != "38"    ||
+     ${l1} != ${l1_1} ||
+	 ${l1} != "85"    ||
+     ${nb} != ${nb_1} ||
+	 ${nb} != "123"   ||
+     ${nbname} != ${nbname_1} ||
+	 ${nbname} != "123"} {
+    puts "Error : Document is read/written wrong!"
+}
+
+Close doc
+Close after_doc
+file delete -force $imagedir/doc_subshapes.stp
+
+param read.stepcaf.subshapes.name 0
+param write.stepcaf.subshapes.name 0
diff --git a/tests/bugs/xde/bug23384 b/tests/bugs/xde/bug23384
index 2867a3bbbc..f4815e0996 100755
--- a/tests/bugs/xde/bug23384
+++ b/tests/bugs/xde/bug23384
@@ -1,14 +1,10 @@
 # Original bug : 23384
 # Date : 16 Aug 2012
-XOpen [locate_data_file bug23384-doc_subshapes.xbf] doc
+pload DCAF
+XOpen [locate_data_file bug23384-doc_subshapes_plain.xbf] doc
 set info1 [XStat doc]
 regexp {level N 0 +: +([-0-9.+eE]+)} $info1 full l0
 regexp {level N 1 +: +([-0-9.+eE]+)} $info1 full l1
-regexp {level N 2 +: +([-0-9.+eE]+)} $info1 full l2
-regexp {level N 3 +: +([-0-9.+eE]+)} $info1 full l3
-regexp {level N 4 +: +([-0-9.+eE]+)} $info1 full l4
-regexp {level N 5 +: +([-0-9.+eE]+)} $info1 full l5
-regexp {level N 6 +: +([-0-9.+eE]+)} $info1 full l6
 regexp {Total number of labels for shapes in the document += +([-0-9.+eE]+)} $info1 full nb
 regexp {Number of labels with name += +([-0-9.+eE]+)} $info1 full nbname
 
@@ -23,22 +19,20 @@ param read.stepcaf.subshapes.name 1
 set info2 [XStat after_doc]
 regexp {level N 0 +: +([-0-9.+eE]+)} $info2 full l0_1
 regexp {level N 1 +: +([-0-9.+eE]+)} $info2 full l1_1
-regexp {level N 2 +: +([-0-9.+eE]+)} $info2 full l2_1
-regexp {level N 3 +: +([-0-9.+eE]+)} $info2 full l3_1
-regexp {level N 4 +: +([-0-9.+eE]+)} $info2 full l4_1
-regexp {level N 5 +: +([-0-9.+eE]+)} $info2 full l5_1
-regexp {level N 6 +: +([-0-9.+eE]+)} $info2 full l6_1
 regexp {Total number of labels for shapes in the document += +([-0-9.+eE]+)} $info2 full nb_1
 regexp {Number of labels with name += +([-0-9.+eE]+)} $info2 full nbname_1
 
 if { ${l0} != ${l0_1} ||
+     ${l0} != "4"     ||
      ${l1} != ${l1_1} ||
-     ${l2} != ${l2_1} ||
-     ${l3} != ${l3_1} ||
-     ${l4} != ${l4_1} ||
-     ${l5} != ${l5_1} ||
-     ${l6} != ${l6_1} ||
+	 ${l1} != "131"   ||
      ${nb} != ${nb_1} ||
-     ${nbname} != ${nbname_1} } {
+	 ${nb} != "135"   ||
+     ${nbname} != ${nbname_1} ||
+	 ${nbname} != "135"} {
     puts "Error : Document is read/written wrong!"
 }
+
+Close doc
+Close after_doc
+file delete -force $imagedir/doc_subshapes.stp