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

Return of rejected goods: follow CT-3 cover, notify customs, endorse ARE3 and secure disclaimer for deemed export benefit. Rejected material purchased by an EOU from DTA under CT-3 must be returned to the original manufacturer under cover of the CT-3 with advance intimation to customs. The EOU should prepare an excise invoice, record and endorse the movement in the bond register; no duty is payable. The EOU must endorse the supplier's ARE3 to declare rejection and enclose its copy with the intimation. If ARE3 was already returned after excise endorsement, the EOU must obtain a Disclaimer Certificate from the DTA for non availment of deemed export benefit.