Goods exported from SEZ rejected by customer

[Guest]

Please let me know provision regarding rejected of goods exported due to quality. I want to know following

1) Customs provision

2) FEMA provisoin

 

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

[Guest]

No reply received

[DR.MARIAPPAN GOVINDARAJAN]

OK Sir, I shall revert to you.

[DR.MARIAPPAN GOVINDARAJAN]

There is no provision in Customs Act as well as FEMA for rejection of goods due to quality. The Revenue considered only the declaration of the value of exported goods. If the value is misdeclared then the same may be rejected. The quality is the concern of the exporter and importer of the imported country as per the terms of the contract. If quality is the criterion for consideration in terms of export then the export will be much difficult.

[DR.MARIAPPAN GOVINDARAJAN]

According to new Foreign Trade Policy- Chapter 8 - Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters from India may be considered by the Government. The exporter shall in the Bill of Entry or the Shipping Bill or any other documents prescribed under the Customs Act, 1962, state the value, quality and description of such goods to the best of his knowledge and belief and in case of exportation of goods, certify that the quality and specification of the goods as stated in those documents, are in accordance with the terms of export contract entered into with the buyer or the consignee in pursuance of which the goods are being exported and shall subscribe a declaration of the truth of such statement at the foot of such bill of entry or shipping or any other documents. Violation of this provision i.e., Rule 11 of the Foreign Trade (Regulation) Rules, 1993 renders the exporter liable for penal action.

AI Summary

Exporter certification of quality required in shipping documentation, breach may attract penal action under export regulation. Customs and FEMA do not provide for rejection of goods abroad on quality grounds; quality disputes are contractual. Exporters must state value, quality and description in Shipping Bills and certify conformity with the export contract; breach of this certification under Rule 11 of the Foreign Trade (Regulation) Rules, 1993 attracts penal action.