GR Waiver Requirement in case of Return of Rejected Material

Hi Kumar,

Let me clarify your queries about GR Waiver (Guarantee Waiver) in case of return/re-export of rejected imported material:

1. Imported Material (from China) — Return Without Payment / Replacement

• Since you imported material but never paid customs duty (assuming goods were under some conditional import or import on consignment basis), and now want to re-export the same goods back to vendor,

• GR Waiver is generally required before re-exporting to avoid payment of customs duty.

• This is because customs requires an undertaking or waiver that you won’t claim refund of duty or that no duty is payable since goods are leaving India.

• The GR Waiver ensures customs does not block the export due to pending duty payments or claims.

2. In Case of Export of Goods (Domestic Origin)

• If you are exporting goods manufactured/purchased domestically (not imported), GR Waiver is not applicable.

• GR Waiver is specifically related to imported goods where duty refunds or claims are involved.

• For normal export of domestically procured goods, no such waiver is required.

3. Documentary Evidence / References

• Customs Notification 50/2017-Customs and relevant provisions under the Customs Act, 1962 cover GR Waiver.

• Typically, GR Waiver is submitted on letterhead with details of goods, reason for re-export, and a declaration that no claim for duty refund is pending.

• You can also refer to your Customs Broker or Customs House Agent who can provide the exact format accepted by the Customs department.

• DGFT guidelines may also mention GR Waiver requirements under Advance Authorization / EPCG schemes.

Summary: