This is a common question in an international trade. How to distinguish between Shut out cargo and re-import cargo.
Let us find the term ‘Shut out’ and ‘re-import’.
What is ‘re-import’?
If any goods of a country is exported to another country and thereafter importing back the same goods, such goods are fallen under re imports. For example, a machinery has been exported to a country for testing purpose and after necessary testing, the said machinery is returning back to the country. Here, the process of returning back such machinery is called re-imports.
What is ‘Shut out’?
Shut out procedures in export customs clearance happens once exporter decides to cancel the export movement of goods while going ahead with exports after completion of export customs clearance procedures. ‘Shut out’ can happen due to cancellation of export order, non fulfillment of quality procedures, change of goods shipped by oversight or any other reasons. Once exporter realizes and decides, not to go ahead with export to the overseas buyer, he seeks permission from customs and carrier of goods to take back the cargo to his premises. In some cases of ‘shut out shipment’, the cargo would have already moved to destination port. However, the cargo can be brought back to the supplier’s premises by completing necessary formalities with customs.
Now, the main difference between shut out and re import is that, in a shut out cargo, the exported domestic goods are not customs cleared at destination port by filing necessary import formalities. However, in re-import, the exported domestic goods would have already customs cleared at destination port by completing necessary import customs formalities of destination country.
The above information is a part of Online Export Import course
Hope you have satisfied with the difference between re import and shut out.
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The information provided here is part of Import Export course online