Rejection of material which is export by eou

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 June 2012 Export by EOU and after that material reject by Foreign Customer and he raise debit note, in that case what happend?

EOU Liable for Excise and Custom Duty that material rejection? or

only Debit note raise by foreign customer is sufficient?

RBI take any action on that matter?

kindly clarify this query.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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05 June 2012 Re-import of rejected jewellery is allowed upto 2% of the FOB value of the exports in the preceding licensing year under the Board’ circular No.07/2006-Cus dated 13.01.1996. These re-imports are allowed under notification No. 94/96-Cus dated 16.12.2006 subject to reversal of benefits availed of while exporting these goods. However, a new provision was inserted under Para 4A.32.1 of HBP to allow re-import of plain/studded precious metal jewellery against a bond for re-export. This provision for allowing re-import under bond was not implemented by DOR on account of risk to revenue.

This matter has been taken up with the Department of Commerce. As a result, this provision under para 4A.32.1 of HBP has been deleted.

It has been brought to the notice of the Board that there is a difficulty in arriving at the export turnover in the preceding year for the purpose of allowing 2% rejected jewellery. In order to resolve this difficulty, it is decided to accept Chartered Accountant’s certificate for export performance of preceding year. Amendment to this effect has also been made in para 4A.32 of HBP.

read circular:

https://www.eouindia.gov.in/epces_cieculars/epces_cir_07_05.pdf

Read:
https://dgftcom.nic.in/exim/2000/policy/chap-06.htm

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