Policy Number: 77
Limits for the payment of restocking charges that may be incurred when merchandise is returned to a vendor for a refund
- Date Reviewed:
- November 2012
- Responsible Office:
- Procurement Services
- Responsible Executive:
- Senior Vice President, Finance and Business Services
I. POLICY AND GENERAL STATEMENT
The Texas Comptroller of Public Accounts is authorized by statute to set justifiable limits for the payment of restocking charges that may be incurred when merchandise is returned to a vendor for a refund. The Texas Comptroller's procedures state that "charges or fees of 15 percent or less of the original cost of the materials are generally considered reasonable. Charges or fees exceeding 15% may require additional statements or justification."
The University of Texas Health Science Center at Houston ("university") supports the Texas Comptroller's rule of the 15 percent limit on the payment of restocking charges. Restocking charges of more than 15 percent require substantial justification. Departments are not authorized to obligate the university by agreeing to pay restocking fees of more than 15 percent. Requests for payment of restocking fees greater than 15% must be referred to the Purchasing Department for processing.