material rejected by 100 % EOU

[raj nadh]

Dear experts,

My unit is 100 percent EOU. Today I have received material form DTA unit, but the material was rejected by us.Pls tell me procedure to be adopted.

Anand

AI Summary

EOUs Can Return Defective Goods to DTA or Get Free Replacements Per Customs Act Supplementary Manual, Board Circular 1999. A 100% Export Oriented Unit (EOU) received defective material from a Domestic Tariff Area (DTA) unit and sought guidance on the procedure for returning it. Experts advised that according to the Supplementary Manual to the Customs Act, goods procured from DTA can be returned if found defective. Additionally, a Board Circular from 1999 outlines that EOUs can receive free replacements for defective imported goods before re-exporting them, or they can destroy or clear them into DTA with customs duty if re-export is not required. These procedures aim to address difficulties faced by EOUs in handling defective goods.