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

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.