How can returns due to damaged goods or insufficient quality be handled?

For ISCC EU, there are two options for handling returns due to damaged goods or insufficient quality:

• Option 1: The acceptance of the (defective) goods is refused, i.e. they are returned to the supplier. In this case, companies have to provide clear evidence and documentation of the refusal process so that the auditor can transparently verify physical and bookkeeping flows of incoming and outgoing materials.

• Option 2: The goods are returned, but the customer issues a Sustainability Declaration for them. In this case, the supplier must have booked out the corresponding quantity in the mass balance. The returned goods can then be booked into the mass balance again (with the new Sustainability Declaration).

For ISCC PLUS, two options exist for handling returns due to damaged goods or insufficient quality:

• Option 1: The intended recipient of the product does not accept the (defective) goods, i.e. they are returned to the supplier. In case a Sustainability Declaration has already been issued (30 days timeframe), the supplier could re-book the goods in its bookkeeping, as long as the refused acceptance is documented and verifiable for the auditor.

• Option 2: The goods are returned and the customer issues a Sustainability Declaration to the supplier. In this case, the supplier must have booked out the corresponding quantity in the bookkeeping. The returned goods can then be booked in again (based on the information provided in the new Sustainability Declaration).