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.

AI Summary

Merchant Exporter Faces Dilemma: Replace Rejected Goods Under CT-1 or Use Duty-Paid? Clarifications on Procedures Needed. A merchant exporter who procured goods under CT-1 and exported them faced rejection of the goods. The exporter needs to send free replacement goods and is uncertain whether to procure them under another CT-1 or use duty-paid goods. One response suggests that the rejected goods are now for home consumption, requiring duty payment, and advises following the CT-1 procedure for re-export, with notification to the Range Office. Another response indicates that import duty is not required for rejected goods if the merchant files a Bill of Entry with a replacement option, attaching proof of export like the shipping bill.