How does one deal with transparency in a placed file in InDesign?

I suppose this may seem elementary, but I'm relatively new to it so here goes:
First off, my print shop says that placed images should be in EPS format. I'm creating my files in Illustrator and some of them use a gradient mask to fade an object away. When saved as an EPS, the gradient mask shows as a white box instead of fading into the background. When I copy/paste my Illustrator image into a new Photoshop file, save it as a PSD, bring that PSD into Illustrator and save it as an EPS, the whole file is in a white box.
Example. I want those aisle markers to not be in white boxes.
http://i.imgur.com/lZjtu.jpg
How does one deal with transparency in a placed image in InDesign?
Thanks.

If possible, one finds a new printer who can handle your files properly and doesn't insist on .eps.
What format are you delivering to the Printer? If it's anything other than PDF (and that's at their request) all the more reason to reread the first sentence. Why on earth are you moving things from Illustrator to Photoshop and back to Illustrator? Either one of those will save as .eps (ugh), though you need to use a clipping path for transparent areas coming out of photoshop (don't really know how Illy handles it when you say to save .eps with transparent background), but you are FAR better off with either native .AI or .PSD, both of which support transparencey, unlike .eps.If yo are delivering PDF, as you should be, it makes no difference to the printer what format the placed content uses (and it shouldn't matter to him even with native files unless he's hopelessly stuck in the 90s).
In any event, when importing from Illustrator, make sure to show the import options and check the transparent background box.

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