A rejection procedure is the contractual and operational process by which a buyer formally refuses a consignment that fails to meet specification or legal requirements, fixing responsibilities for notification, sampling, storage costs and disposition of the goods.
In trade practice
On arrival, the receiving team conducts an incoming goods inspection and, if defects are found, issues a written rejection notice to the supplier within the contractually agreed timeframe. A retained counter-sample is sealed and an independent third-party laboratory or inspection body is engaged to confirm the non-conformance. Common mistakes include delayed notification, failure to preserve the cold chain during re-inspection, and disposing of goods before the supplier has acknowledged the rejection. The contract should specify who bears storage and handling costs during the dispute period.
In a specification
A specification or contract clause should state the notification period, the method of sampling, the accredited body authorised to confirm rejection, and whether the seller may request a counter-inspection before disposition is decided.