Import of rejected goods export to buyer

[harkirat singh]

Dear Sir,

We have Exported Goods to our buyer in Australia under GST scheme(under Drawback and MEIS). Buyer has rejected exported goods and now we have import these goods, to check status

Perhaps we will use in domestic market or if goods found in good condition. We will re-export these goods to another buyer.

Kindly advice following :-

1) Time Frame for import of rejected goods

2) procedure to import rejected goods.

Kindly advise in Details.

Regards

Harkirat Singh

[email protected]

[Nash Industries I Pvt Ltd]

Refer Customs Notification 45/2017 dt 30.06.2017.

Regards

S.Ramaswamy

[DR.MARIAPPAN GOVINDARAJAN]

Notification No. 45/2017-Customs, dated 30.06.2017

[Yash Jain]

Dear Sir,

As per RBI circular on export of goods and services the realization for goods exported should be realized within 270 days from export of goods. This can further be extended to 6 months by AD bank.

Now as you have exported the goods it will be captured by customs and reported to RBI in edpms system. This edpms report will be used by AD bank to follow up for overdue bills. In this case you have 2 options and as under,

1. Show the same goods as import from same party and inform AD bank to knock off the export bill against this import. (Import is captured in IDPMS and ad bank will knock of edpms against IDPMS).This is permitted by RBI in its circular in "netting of export / import against same person"

2. In case you are anticipating that another buyer will be there, then first seek extension for realization of export proceed from AD bank for further 6 months and find another buyer. In this case as the remittance is coming from person other than original buyer mentioned on shipping bill AD bank will ask for proof (As it is 3rd Party remittance). Hence as documentation take on "original buyers letter head his correspondence/reason for rejection" Then make another commercial invoice/enter into contract with another buyer and submit all these documents to AD bank for your bill regularization. This will clear your edpms outstanding. (**If "any" export bill is outstanding for more than 2 year then the exporter is caution listed by RBI. Exporter will not be given PCFC facility (will be given only for LC based order), Exporter will not be able to export on credit).

For MEIS : If exporter has not realized then please surrender mein.

For Drawback : It is generally given only after producing BRC, so you may have not received the said.

For GST : Reverse your ITC to the extent of goods exported but not realized. Also please clear all your edpms outstanding or else you will receive notices from GST department for reversal of ITC.

Rgds

[DR.MARIAPPAN GOVINDARAJAN]

Useful information. Thanks Shri Yash.

[Rajneesh Kumar]

Dear Mr. Yash Jain,

Many thanks for clear and simple explanation, I appreciate.

I have a question regarding the last point pertaining to IGST, "For GST : Reverse your ITC to the extent of goods exported but not realized."

We made export after paying IGST and later claimed refund. We checked Circular no 45/2017-customs also. So we understand that we need to pay back the IGST refunded. Kindly advise:

- Where to show this IGST (returned to government) in GST return?

- How will we get this IGST (returned to government) refund?

I thank you in advance for the reply.

Best Regards

AI Summary

Import of rejected exports: netting against original export allowed subject to AD bank regularisation and tax reversal.
Declare the rejected goods as imports from the same buyer to enable AD bank/IDPMS knock off against the export bill, or seek extension from the AD bank and, if selling to a new buyer, provide the original buyer's rejection confirmation plus new commercial documents for third party remittance regularisation. Surrender MEIS if proceeds not realised; drawback depends on BRC. Reverse ITC/IGST for exports not realised and clear EDPMS outstanding to avoid regulatory actions.