What happens if your buyer rejects cargo? What are the major problems if consignee not taken delivery of cargo?

 

The information provided here is part of Export Import Online Tutorial


What happens if your buyer rejects cargo?

 

Importer not accepted goods – How to handle?

 

What happens if your buyer rejects cargo What are the major problems if consignee not taken delivery of cargo?
How to handle rejected goods at destination port? Consignee not accepted goods at final destination - actions to be taken by seller/exporter. How to handle a rejected container at destination? Goods arrived at destination; importer/buyer does not require goods – Tips to exporter/supplier. How to handle rejected cargo by importer. How to handle abandoned goods by importer.

 

Normally, chances are very rare in rejection of cargo. As per my experience of years in import and export trade, I always believe - ‘business’ is ‘relationship’. I will call “relationship” as “understanding” in trade. In most of the cases disputes arises when relationship fails. Any problem can be solved between exporter and importer, if both have a good business relationship each other.

 

The major threat in rejection of cargo is nothing but poor quality of goods. So in order to avoid any rejection by your overseas buyer, you need to be very strict in quality as per buyer’s requirements. If your quality of goods is not met with the specifications of buyer, no one can help you other than you. You can not get any support from any agencies or government within the country.

 

When discussing about maintenance of quality in export import trade, beware of some fraudulent buyers/importers who deliberately blame on quality of materials exported. The exporter/seller is fully confident on quality of goods he supplied; however some of the overseas buyers purposely find a reason to reject goods on quality, if proper sampling procedures had not been followed before export takes place.

 

Ok, it happened – the overseas buyer rejected your goods. You are confident on quality of goods you exported. Now let us discuss, the actions to be taken immediately.

 

Export goods rejected/abandoned before completion of import customs clearance at port of final destination:

 

If goods exported rejected/abandoned by buyer, what are the steps to be taken?

 

a. You can request the same buyer to accept the goods at discounted rate if any default at your side as a supplier of goods. Here, you as seller/exporter believes buyer’s voice stand on the reasons behind rejection of goods.

b. You may have other contacts in the importing country. You can approach them to buy the said product with discounted rate. If you do not have contact with other buyers of similar products, you can try to find some body who can accept goods.

c. If you have buying agent in the said country, they help you in re-selling goods. If you do not have, approach your competitors’ agent at destination to resell goods.

d. You can appoint a commission agent to find a buyer and resell the goods. There are commission agents working in each country who are experienced in handling such goods.

e. Work out costing of freight and other expenses to take it back to your factory, if worth you can call back the cargo back to your factory.

 

Rejection of goods by overseas buyer, after arrival of goods at buyers factory after customs clearance:

 

 

If goods are rejected after import customs clearance, the strength in holding cargo is very less for the exporter as the goods could be already at the buyer’s custody. The possibility of re-selling, taking back to seller’s place etc. may cost you more. The best way is to request the same buyer to accept the goods and arrange to provide discount for forthcoming shipments to compensate the loss.

 

Export goods rejected due to dispute between buyer and seller.

 

The cargo can be abandoned at port of destination with other reasons such as dispute between importer/buyer and exporter/seller. Here, you can arrange to re-sell the goods to other competitors or call back the goods to your factory at port of loading, appointing an overseas agent to handle the goods to re-sell etc.

 

Goods un cleared/abandoned due to improper co-ordination between exporter and importer.

 

As I have explained in different articles in same website, an importer has to file necessary bill of entry documents with destination customs location of the country to complete necessary import clearance procedures and formalities, failing which the consignment is automatically declared as UN CLEARED GOODS/ABANDONED goods.

 

The goods can be ‘un-cleared’ due to non awareness about arrival due to the lack of proper intimation by shipment advice, non receipt of Cargo Arrival Notice (CAN) by carrier to importer etc. This default is commonly happened where in two or more parties are involved in between the actual seller and final buyer.

 

I hope, this article helps you to enlighten about rejection of goods by buyer/importer/consignor, steps to be taken if buyer rejected export goods, tips to exporters/supplier on rejection of export goods.

 

You can also share your experience about rejection of export goods/ abandoned export goods/ un cleared import goods etc.

 

Would you like to add more information about this subject – tips to exporters if goods rejected/abandoned?

 

 

The above information is a part of Import Export Training online


 

How to send export samples to foreign buyer? Tips to send samples to foreign buyer

 

What happens, if Bank not received money from buyer after discounting of export bills?

 

What does ECGC do on default of payment of any overseas buyer?

 

What happens if overseas buyer not paid export bills discounted.

 

Can goods of different buyers to one country under one shipment be shipped?

 

Guidelines to overseas buyers of Paper and paperboard, articles of paper pulp

 

Tips to foreign buyers on importation of Articles of non knitted or non crocheted apparel and clothing

 

Direct dispatch of export documents to buyer


Write below your comments about rejection of export goods/ handling of abandoned goods / importer not accepted goods/ tips to exporters on reselling of rejected goods etc.

 

 Other details on how to import export 

 

Can the goods be taken back for quality inspection after shipping?
 What happens if proper tracking of goods not effected in export import business?
 How to know the quality, quantity or contents of goods before import customs clearance
 Difference between first check appraisement and second check appraisement in imports
 Consignee “To Order” in Bill of Lading
 What happens if overseas buyer not paid export bills discounted.
How to start Export Business?
How to get Export Orders?
What are the risks and solutions in Export Business?
Click here to know India Trade Classification(ITC)
Service Tax - Click here to read complete notification under Budget 2014
What is Bank post shipment credit to exporters?
Types of export containers
Measurement of export containers
Exim Policy of India 2015-2020
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports
Export procedures and documentation


Comments


awni al jamal : The goods are unauthorized to enter a particular country is possible that different laws in other countries and allow them to enter into other countries, but that some of the tests in some states militant and not the necessity that the goods are rejected are invalid because there are several mistakes possible minor problems hinder entry into the country because the problems of materials food in the dates of production and finishing a fact is not a problem in other problems insistence of the authorities and its intransigence in preventing the process of clearance and fear merchants of these irregularities with it you may get it why do not bear the Petroleum Exporting Countries to Tltk goods mistakes occurring from exporters with respect Awni

Lance: Are there circumstances when the rejected product is donated? I work for a non-profit located in Florida, and to keep the cost down for the shipper we'll cover the shipping cost and provide a donation receipt to write off up to 200%.

Pradeep Gupta: Dear Sir In any case if the goods (Power Generation Components for rotating machinery) not cleared by Indian importer even after advance intimation to importer. Can foreign supplier returned it back from Indian Port. Please advise. Best regards

Arun: Dear Sir / Madam, I am a regular visitor of your website it is very informative and helped me to understand many things. I am working in a biotech company based in Mumbai as a Manager Exim and overseeing overall EXIM activities. In 2013, we shipped a food grade biotech product to our customer located in Europe and they cleared the cargo from destination port. After checking the quality, they found some contamination in the product. The payment term was DA 30 days for euro 85000 and they refused to pay the amount due to contamination. Apart from payment refusal, they also imposed a big claim on our company. Now the legal procedure is going on between the company lawyers . Now i need to close the shipping bill from Bank. But the payment is not going to happen for sure . We are not getting material also not getting back. Under such situation, how do we close the bill from bank. Now the bill reporting under XOS team of RBI Your kind advice will be appreciated Regards Arun

Inayat ullah khan niazi: Its highly informative artical

Ganesh: Need to give a free supply of a ABB drive to Thailand customer. WE have a ABB drive supplier in Thailand and he can supply the same to customer. But i need to pay the money to ABB Thailand, can this kind of transaction possible in India. Where physically material wont come to India and no fund will transfer to India.

neethipathi36: i have rohith export GM company work sir.please how get buyer order detail and link realtion ship management sir. import contact wnen the website see the please give me for idea sir......

QQ: Ship out a container load of agrochemical to Egypt. Egypt custom want to reject this container. Main reason packaging label is in correct. Any solution not having this container load being return? Thank you QQ

ARUMUGAM: what is the time limited to removal of duty paid exbond goods from warehouse, any circular or notification

Tayefur Al Daud: Dear Sir, Can you provide a detail financial effects of all cost regarding export. It will help new entrepreneurs to calculate Production to shipment expenditure.

Benoy Majumder: Importer not accepted goods – How to handle? Mob. No. 9831008679

Murali S : I am Murali, CEO of Shine Export & Import,India. We want to international buyer in commission based We would like use this opportunity to introduce ourselves, that we are dealing with export and import Quality Spices, Herbal, Agricultural, Essential oil, Paper bag, Chemical products,etc to the reputed clients all over the world. Our concern based from Chennai,India. We export various spices & herbals grown various places from India to many countries after completing various quality checking. We offer our clients only superior grade products,we assure you the

Vilas dale: Myself vilas dale from maharashtra, sir i have interest in exporting the product to other countries, so sir plz help me that, how to export the products,2) buyers for that products,3) port for that products, sir plz help me this types of queries sir, also my last question to u is that, i am wholesaler not a manuafacturer

sakthivel s: export material rejected goods any material textiles

Ahsum Haleem: Dear Respected Sir, I am pleased to read a comprehensive article but I have a point to extend this conversation. Let us consider a case in which cargo left port A on 06.09.2016 and arrived at port B for Trans-shipment purpose. Its destination at Port C. Shipment was delayed due to bankruptcy of shipping line. The anomaly was created due to delay in arrival of cargo at port C and client of our customer has arranged the same material from other source. Meanwhile an information received that cargo has reached at port B for trans-shipment. Now my question is: Can we sell this material at Port B because the customer had refused to purchase this material? Is it possible legally.

pratap G: Dear Sir, our importer in india rejected the cargo after taking out of charge order from customs. exporter at load port accepted to re-export the cargo.duty paid by our importer can we claim for refund the amount to indian customs..pls explain in detail wrt re-export of the same cargo

Shahrukh Ansari: I m Shahrukh Ansari my problem is our Importer not accepting goods due to some increasing destination charges as they are assuming. Now our agent telling me that if your buyer not agree to take good then we will take back all goods and then all charges i have to pay which is not good. How to handle please let me know asap Thanks.

Mahesh shah: I am looking for list of commission agents in mumbai who provide ready made export orders Maheshshah Cell8446310999

Prashant Deshpande: Hello If any Buyer has taken the delivery of Imported Goods in India and came to know that these are not the goods ordered for. Rejected the Goods. The Exporter has some connections in India. Say Overseas supplier asks C to take the delivery of the said Material. Overseas supplier ready to meet the cost of the Clearing the material. How this can be handeled ? Will this be treated as Import Purchase or Purchase in the course of import Will it be treated as local sales as A has already paid the duty and taken the delivery of the goods. Please explain. Thanks in advance. Prashant Deshpande

Harkirat Singh : We have exported two shipment of readymade garment and accessories. In these shipment few pcs are bleeding. So, these pcs are rejected buyer we have to bring these pcs back and export the difference pcs to buyer again. Please advice complete procedure.

GAnny: My overseas supplier has rejected my component on quality issue and we have availed MEIS benefit for that export, we are going to pay him back - should i refund the benefit value back to DGFT/Government.

James: Very informative article. If a commission agent agrees to buy merchandise the original buyer does not accept (quality issue or other reason), he would need to register the purchase for tax reasons so he can legally declare the purchase and profits. Who would the seller be in this case, assuiming the merchandise has been unloaded from the ship?

Jay Energy: What is the best way to get on a list of buyers for resale of abandoned cargo? We purchase abandoned Energy equipment.

Nicole: I have a question that if importer/buyer bankrupt what issues to its FF company?

iftikhar hussain: sir, If cnee's and destination shipping line have old shipment dispute and cnee's have not collect deliver order because of this perishable cargo damage, who is responsible ?? in this case pod shipping line disposal cargo and responsible to shipper and claim all related charges under shipper at pol. what is your opinion about this case.

Krishnamurthy: We made export of Soapstone for heaters material blasted and rejected at Buyer end. so I have not received Money it is nearly $6000/-. and Money will not pay by Buyer, Consignment can't bring back to India, it will be cost more for bringing back, and since it blasted, can't collect it. Please inform Me RBI will ask for why the Money not received? what I have to inform them? or is there any form to inform RBI about not received Money. Or what We have to inform RBI? if some body know it Please inform Me. thanks

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