Destruction of exported goods abroad

[CAHemanth Kumar]

Dear Members,

EOU or DTA having benifit of advance authorisation has exported goods and received foriegn currency. Recipiant has rejected such material and got his payment back in foreign currency. Later, EOU or DTA has destroyed such rejected in foreign country without bringing back into India

In this scenario

1. Whether such EOU/DTA has to reverse benefits of duty free imports?

2. Whether MEIS benefit claimed on such exports need to be reversed?

3. Is there any specific procedure for such destruction?

AI Summary

Exporter Must Reverse Export Benefits for Destroyed Goods, Obtain Destruction Certificate, Comply with Foreign Trade Policy, FT(DR) Act An exporter faced a situation where goods exported under an EOU or DTA scheme were rejected and destroyed abroad, raising questions about the reversal of export benefits. The discussion involved whether duty-free import benefits and MEIS benefits should be reversed. Responses indicated that export benefits should be reversed, citing the Foreign Trade Policy and FT(DR) Act, and a destruction certificate should be obtained. It was noted that MEIS benefits are not applicable since the realized consideration was zero. No specific procedure for destruction was identified. The discussion emphasized the need for compliance with export realization and documentation requirements.