Exports Goods Rejection (EOU Unit)

[Basha AbdulRazack]

Sir,

Pease clarify the Customs Duty and GST involvement for Export goods rejection (EOU Unit)

1) Goods Exported to USA, due to quality issue the said goods going to scrap conditions and no possibilities for repair/rework again. So customer's will scrap the goods at USA

2) We will not receive any payment for this rejection

3) There is no point to reimport these scrap goods

So please give clarification for duty/gst payment for the above issues as per EOU Rule

[KASTURI SETHI]

Nomenclature and HSN of goods exported pl. These are to be treated as cleared for home consumption. The date of invoice and the date of export ?

[Basha AbdulRazack]

Sir,

Transformer 8504 and Date of Export 04/03/2019

Thanks & Regards

Abdul Razack

[Basha AbdulRazack]

Sir,

Please give reply for my queries.

Regards

Abdul Razack

[YAGAY and SUN]

In our veiw, first of all you need to get a Certificate from you foreign Customer that goods had been rejected due to quality issues and accordingly disposed off in environment friendly manner as per the US Laws.

You need to get the non receipt of Export proceeds write-off as the RBI Master Directions.

Any benefit, if availed by you under FTP and under the provisions of 100%EOU, then, it needs to be reversed.

For Settlement of EDPMS you need to contact your Banker (Authorized Dealer) along with all relevant documents and documentary proofs.

The amount involved in this transaction will not be recognied for NFE.

AI Summary

Export goods rejection: obtain buyer certificate, reverse EOU/FTP benefits, complete RBI write off and EDPMS settlement.
Obligations on EOU exporters for goods rejected abroad include obtaining a buyer certificate confirming rejection and disposal, following RBI Master Directions for write off of non receipt of proceeds, reversing any FTP or 100% EOU benefits availed, coordinating with the authorised dealer for EDPMS settlement with documentary proof, and not recognising the transaction value as Net Foreign Exchange. Customs duty and GST treatment depends on invoice, export dates and classification.