Procedure for sending back rejected goods

[Guest]

1)what is procedure for sending goods from one 100% eou to another 100% eou? 2)what is procedure for rejected goods send back to 100% eou by another 100%eou after re ware housing?

[Markesh Antony]

I think the procedure can be found in the relevant provisions of Customs / Central Excise etc. It would advisable if you search in the ciruclars issued under central excise and customs first, that would help you a lot. Indeed, transfer of EOU to EOU is treated as deemed export and benefits of export are available and the benefit of duties can not be denied.

[Haridas Nair]

Pl see whether circular no.60 of 99-cus dated 10.9.1999 will be of help to you for the rejection part.

[RadheyShyam Mangal]

kinly refer para 6.13 of FTP for inter unit transfer. In simple form you will have to follow the ARE-3 Procedure for such movement.

AI Summary

Deemed export treatment preserves export benefits for inter unit transfers of rejected goods between 100% EOUs; follow ARE procedures. Deemed export treatment applies when one 100% EOU sends rejected goods to another 100% EOU; such inter unit transfers retain export benefits. Exporters should follow the prescribed inter unit transfer procedures, consult customs and central excise circulars on rejection and re warehousing, and use the applicable ARE movement procedure to secure duty benefits and comply with formalities.