How to return overseas customer's goods

We have received some material (1000 pcs) from our customer in Germany for processing. The material was send as free issue and we paid custom duty + CVD on the value declared by customer (US$3000). We have processed part of the order (100pcs), the quality of which was not accepted by customer. Now customer wants us to return the 900 pcs back to them. How do we do this? What is the correct procedure?

Replies (5)
Originally posted by : H.B.Jesrani

We have received some material (1000 pcs) from our customer in Germany for processing. The material was send as free issue and we paid custom duty + CVD on the value declared by customer (US$3000). We have processed part of the order (100pcs), the quality of which was not accepted by customer. Now customer wants us to return the 900 pcs back to them. How do we do this? What is the correct procedure?

you have not maintained any formality of rules or acts, u have to import the goods under bond, process the same under bonded provisions and then export 

 

once duty is paid, u have to export the goods under rule 12 or 13 of central excise. 

Originally posted by : U S Sharma
you have not maintained any formality of rules or acts, u have to import the goods under bond, process the same under bonded provisions and then export 
once duty is paid, u have to export the goods under rule 12 or 13 of central excise. 

Thank you for the reply Mr.Sharma. I agree that we have made a mistake. Does this mean that we have to now export as sales? But customer is not going to pay us even if we do that. Can we send as samples?

below Rs 5000/- samples are allowed, 

now its beyond your limit, you have to export the same and write off the same as bad debt.

Originally posted by : U S Sharma

below Rs 5000/- samples are allowed, 

now its beyond your limit, you have to export the same and write off the same as bad debt.

Thank you for the advices. Can we send without ARE1?

ARE-1 is instrument for discharge of duties and contra relation between customs and excise, if ur tax liability does not effect then u can send without ARE-1

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