Return of Free Replacement goods

[Narhar Nimkar]

A Merchant exporter has procured goods under CT-1 and exported the same. Subsequently the goods are rejected. Now, the merchant exporter needs to give Free Replacement of goods. Whether he can give the same by obtaining goods under another CT-1 or has to obtain duty paid goods. What other formalities are required to be done by the merchant exporter.

[KASTURI SETHI]

Rejected and returned goods are meant for home consumption now. Duty should be paid. Follow afesh CT- 1 Procedure for sending goods for export sgain. Inform Range Office in writing about returned goods.

[Kishan Barai]

Import Duty has not to be paid for rejected goods, Merchant can file Bill of Entry with option of Replacement, in it proof of exports like shipping bill has to be attached in icegate

AI Summary

Replacement of returned export goods: either duty payment with CT 1 procedure and Range Office notice, or Replacement Bill of Entry with export proof.
Two procedural positions govern free replacement of returned exported goods: one treats rejected returns as for home consumption requiring import duty payment, adherence to CT-1 export/despatch procedures for re-export, and written notification to the Range Office; the other permits replacement without duty by filing a Bill of Entry with the Replacement option and attaching export proof (shipping bill) via ICEGATE.