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
Clarification on Customs Duty and GST for Rejected EOU Exports Scrapped Abroad; RBI Guidelines on Write-off Explained. An individual inquired about customs duty and GST implications for rejected export goods from an Export Oriented Unit (EOU) that were scrapped in the USA due to quality issues, with no payment received and no reimport planned. A respondent advised obtaining a certificate from the foreign customer confirming the rejection and disposal per US laws. They also recommended writing off the non-receipt of export proceeds per RBI guidelines and reversing any benefits availed under the Foreign Trade Policy and EOU provisions. For EDPMS settlement, the individual should contact their banker with relevant documentation. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
