want to know all about import purchase return procidure-

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Hemant Joshi (Querist)
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07 February 2009 Dear sir,
I am working in Manufacuring Unit.and i want to know all about Imported Material Purchase To be returned to Foreign Contry Supplier under Central Excise Law.

Hemant Joshi

Hemant Joshi (Querist)
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07 February 2009 Want to know about above subject

Rajesh Kumar

Rajesh Kumar (Expert)
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09 February 2009 The manufacturing unit may have taken cenvat credit on the purchased material. In that case the unit may export the goods under bond.
However, through this procedure you will loose the Basic Custom duty paid. For basic custom duty purpose, you can claim drawback under Section 74 of the Custom Act.

Hemant Joshi

Hemant Joshi (Querist)
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12 February 2009 waiting for complite procidure undere exicse rules

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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03 August 2025 Here’s a detailed overview of the procedure for import purchase returns to foreign suppliers under Central Excise Law, especially for manufacturing units:
Import Purchase Return Procedure (Central Excise & Customs Perspective)
1. Understanding the Scenario:
You imported materials for manufacturing.
You want to return the imported goods to the foreign supplier.
You have possibly availed CENVAT credit on the imported goods.
Import duties and taxes were paid at the time of import.
2. Key Points to Keep in Mind:
When imported goods are returned, Basic Customs Duty (BCD) paid at import is generally non-refundable.
You can claim duty drawback on the returned goods under Section 74 of the Customs Act.
You must comply with Central Excise and Customs regulations related to return of goods.
3. Step-by-Step Procedure:
A. Check CENVAT Credit Taken
If you have taken CENVAT credit on imported materials, you must reverse the CENVAT credit taken on the goods being returned.
The reversal should be done as per CENVAT Credit Rules.
B. Filing Export under Bond or LUT (Letter of Undertaking)
Since you are returning goods abroad (exporting back), you need to file export under bond or LUT without payment of IGST (if applicable).
This helps avoid payment of integrated tax on export.
C. Customs Procedure for Return:
Inform Customs about the return.
Submit Shipping Bill for export of goods.
Provide necessary documents such as:
Bill of Entry (Import document)
Invoice
Proof of payment/return
Shipping bill for export
Customs will verify and clear the goods for export.
D. Claim Duty Drawback (if applicable)
You can file for duty drawback of Basic Customs Duty (BCD) under Section 74 of the Customs Act.
Duty drawback claim process involves submission of required documents to the Customs authorities.
Processing time varies; ensure complete documentation.
4. Accounting and Documentation:
Maintain detailed records of returned goods.
Keep copies of all correspondence with supplier and Customs.
Reverse any CENVAT credit taken.
Reflect the return in your purchase and inventory records.
5. Other Important Notes:
Check for any time limits prescribed under Customs or Excise law for returning imported goods.
If goods are defective/damaged, keep documentary proof.
Consult your Customs Broker or Tax Consultant for precise procedural compliance.
Summary Table
Step Action
1. Reverse CENVAT Credit Reverse CENVAT on goods returned
2. File Export Under Bond Apply for export of returned goods
3. Submit Customs Docs Shipping bill, bill of entry, invoice, proof
4. Claim Duty Drawback File under Section 74 of Customs Act
5. Maintain Records Purchase, inventory, communication logs

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