Do You Really Understand Directly Returned Goods?

In the complex web of international trade, the concept of directly returned goods may not be widely known to the general public, but for those engaged in import and export businesses, it is a crucial link. Imagine that Mr. Zhang is engaged in foreign trade work. He was originally looking forward to successfully completing a goods transaction, but after the goods arrived at the port, various situations occurred, and finally he had to directly return the goods. So, what exactly are directly returned goods?

Directly returned goods, simply put, refer to the goods that after the imported goods enter the territory and before the completion of the customs clearance formalities, due to specific reasons, the consignor, consignee or their agents apply to the customs to directly return all the goods to overseas. The specific reasons here include various situations, such as the quality of the goods does not conform to the contract provisions, or changes in the market cause the consignee to no longer need this batch of goods, etc.

Directly returned goods are mainly divided into two types: general return and mandatory return.

• General return usually means that both the consignor and consignee reach an agreement through negotiation and voluntarily apply to the customs to return the goods. For example, Ms. Li imported a batch of clothes. After the goods arrived, she found that the color did not match the contract agreement. After communicating with the foreign supplier, both parties agreed to return the goods. This kind of return based on the mutual agreement of both parties belongs to general return.
• Mandatory return is different. It is that the customs, according to relevant laws and regulations, orders the parties concerned to return the goods that do not meet the regulations to overseas. For example, if the imported food does not meet the food safety standards of our country, the customs has the right to order the relevant enterprises to return this batch of food.

To handle directly returned goods, a certain process needs to be followed.

• First, the application stage. The consignor, consignee or their agents shall submit the application form for direct return and relevant supporting materials such as contracts, invoices, packing lists, etc. to the customs where the goods are located, and clearly explain the reasons for the return.
• Second, customs review. After receiving the application, the customs will conduct a strict review of the reasons for the return, the situation of the goods, etc. Only after the review is passed will the return be approved.
• Finally, the actual return operation. After being approved, the consignor and consignee shall handle the customs declaration formalities according to the requirements of the customs and transport the goods out of the country. During this process, it is necessary to ensure that the packaging, transportation, etc. of the goods comply with relevant regulations.

When handling directly returned goods, there are many things that need to be noted.

• First, time limit. Once the decision to return the goods is made, the application to the customs should be submitted as soon as possible to avoid incurring additional costs or facing other problems due to overdue.
• Second, goods condition. The returned goods should be kept in their original state. Without the permission of the customs, they shall not be opened, extracted, delivered, shipped, exchanged, modified, mortgaged, pledged, etc. without authorization.
• Third, document preparation. It is necessary to prepare complete and accurate supporting materials. This is an important basis for customs review. Incomplete or incorrect materials may lead to the non-approval of the return application.

Directly returned goods are a link that cannot be ignored in international trade. Whether it is import and export enterprises or relevant practitioners, they should have an in-depth understanding of its concept, types, handling procedures and precautions to avoid economic losses and unnecessary troubles caused by improper handling. Only by mastering these knowledge proficiently can they handle themselves freely in the complex and changeable international market and ensure the smooth progress of trade activities.