Importer/ Buyer/ Consignee 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?

• 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.
• 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.
• 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.
• 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.
• 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.