Return of Imports after rejection

[BRIJMOHAN GOYAL]

Dear All,

We had import Cargo - A under Merit, on testing in our works, it was found that quality is not matching with spec so it was rejected . We want to know :-

(1) Procedure for return of cargo to Supplier.

(2) We can handover cargo to Supplier on ex-works basis in our factory and Supplier can re-sale this cargo in India.

Request to inform procedure for (1) & (2).

Regards,

BM Goyal

[Ramachandran Chandru]

To my knowledge, it can be handled as below to ship back rejected goods to Supplier:

* Supplier to provide letter of acceptance to take back rejected goods at their own cost.

* Approval is to be obtained from Customs authorities concerned to ship back rejected goods.

* GR Waiver is to be obtained from Banker concerned for re-export shipment.

* Supplier cannot sell the rejected goods in India, directly, with accepting back to their home country.

* Importer themselves can sell the goods in India, provided there is a buyer, on payment of applicable duties, instead of re-export.

Regards,

Chandru R

[YAGAY andSUN]

You may re-export it under Section 74 of the Customs Act.

[Kishan Barai]

Great Points listed by Chandru R Sir, more over seller also need to obtain NOC [No Objection Certification] from buyer.

AI Summary

Return of rejected imports: re-export requires supplier acceptance, customs approval and bank GR waiver, with resale restrictions. Re-export of rejected imports requires supplier acceptance to take back goods at their cost, customs approval to ship back, and a GR waiver from the banker; the supplier cannot resell the returned goods domestically, while the importer may sell domestically only after finding a buyer and paying applicable duties.