Destruction of exported goods abroad

[CA Hemanth 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

Export benefits denied where goods destroyed abroad without realisation; duty free and incentive claims must be reversed.
If exported goods are rejected and destroyed abroad without repatriation of proceeds, export incentives and duty free import benefits dependent on realisation of foreign exchange are not admissible; the exporter must reverse FTP benefits and pay interest as applicable. MEIS is inapplicable where realised consideration is nil because entitlement uses the lower of FOB or realised foreign exchange. A destruction certificate from the purchaser is recommended, but no specific statutory procedure for destruction abroad was found.