FBA removal customer damage

I have a FBA removal order. Here is the reason. Is this an example of when I make a claim? or how does this work?

https://sellercentral.amazon.com/help/hub/reference/G200379860
" * Amazon does not accept responsibility and will not reimburse you for returned items that are damaged by a customer, are subject to recall, are defective or in violation of Amazon policies, or for other similar reasons. Items that fall into these categories are added to your unfulfillable inventory when they are returned."

You will need to get the product back to evaluate the core reason. Well over 90% of our returns are simple packaging damage. If you get a different item back or other odd issues, there is a reimbursement process. If the item/packaging/etc is customer damaged, that is on you.

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When you get it back, chances are it’s fine. Or something very minor, or recoverable. Or something completely different! Never trust Billy’s assessment (good or bad).

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I have also found that if you have the refurbish setting turned off (the new thing where Billy doesn’t decide whether to repackage it for sale), all of mine are marked now as Customer Damaged.