material rejected by 100 % EOU to DTA

[raj nadh]

Dear Experts,

My previous question is wrong. Actually we have rejected paint which is purchased from DTA on CT-3.

Pls let me know the process to send back the rejected material to DTA.

[PAWAN KUMAR]

The same is to be returned to the original manufacturer from whom an EOU has purchased under cover of CT-3 certificate. An advance intimation is required to be submitted to concerned customs authorities. The EOU will prepare an excise invoice for the purpose of such rejection goods. No need to pay duty on such removal. After sending the rejected goods please mark the entry in Bond register also and endorsed the same by customs authorities.

[PAWAN KUMAR]

In continuation of my earlier reply, the ARE3 received from the supplier shall also be endorsed by the EOU declaring that goods not as per the quality standard, hence rejeted and being returned to you. No need to endorse such ARE3 from your concerned customs authorities. Only copy of such ARE3 is enclosed with intimation.

[Hikal Ltd]

If EOU already returned the ARE3s after endorsement from excise, then EOU has to be obtained an Disclaimer Certificate from DTA for non availment of deemed export benefit for the said invoice.

AI Summary

EOU Returns Rejected Paint to DTA: Follow Customs Protocol, Use Excise Invoice, and Ensure ARE3 Form Compliance. An EOU (Export Oriented Unit) rejected paint purchased from a DTA (Domestic Tariff Area) under a CT-3 certificate and sought guidance on returning the material. Experts advised returning the goods to the original manufacturer with advance notice to customs authorities and preparing an excise invoice without paying duty. The EOU must mark the entry in the Bond register and endorse it with customs. Additionally, the ARE3 form should be endorsed by the EOU, indicating the rejection due to quality issues. If ARE3s are already returned, a Disclaimer Certificate from the DTA is required to confirm non-availment of deemed export benefits.