What is a Product Rejection Policy?
For exporters—especially those dealing in pharmaceuticals, food, agriculture, and perishables—international trade is fraught with regulatory risks. A shipment can be arbitrarily rejected by the regulatory authorities (such as the FDA in the US, or the EFSA in Europe) of the importing country upon arrival.
A Product Rejection Policy safeguards your balance sheet against the severe financial losses associated with government rejections, ensuring that strict border regulations don't bankrupt your export operations.
Key Coverage Features
Value of Goods
Reimbursement for the gross invoice value of the exported goods that have been rejected and condemned by foreign authorities.
Return Freight Costs
Covers the exorbitant logistics costs required to ship the rejected goods back to the country of origin.
Destruction Costs
If the goods cannot be returned and must be destroyed at the destination port, the policy covers the legally mandated destruction expenses.
Loss of Gross Profit
Optional add-ons can be structured to protect the anticipated profit margin lost due to the sudden rejection of the consignment.
The Zenisk Advisory Advantage
Product Rejection policies are highly specialized and require meticulous adherence to pre-shipment testing warranties. We help structure your policies to align seamlessly with your existing quality control protocols, ensuring that your claims are not rejected due to technical warranty breaches.
Protect Your Exports