New Delhi, August 23
The authorities has come out with norms for the enforcement of ‘rules of origin’ provisions for permitting preferential fee of customs duties on merchandise imported beneath free commerce agreements.
The new norms have been framed with a view to checking inbound shipments of low high quality merchandise and dumping of products by a 3rd nation routed via an FTA companion nation.
The Department of Revenue has notified the ‘Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020’ which might “come into force on September 21, 2020”.
These guidelines “shall apply to import of goods into India where the importer makes a claim of preferential rate of duty in terms of a trade agreement,” it mentioned.
The “rules of origin” provision prescribes for the minimal processing that ought to occur within the FTA nation in order that the ultimate manufactured product could also be known as originating items in that nation.
Under this provision, a rustic that has inked an FTA with India can’t dump items from some third nation within the Indian market by simply placing a label on it. It has to undertake a prescribed worth addition in that product to export to India. Rules of origin norms assist include dumping of products.
India has inked FTAs with a number of international locations, together with Japan, South Korea, Singapore, and ASEAN members.
Under such agreements, two buying and selling companions considerably scale back or eradicate import/customs duties on the utmost variety of items traded between them.
According to the notification, to say preferential fee of responsibility beneath a commerce settlement, the importer or his agent, on the time of submitting invoice of entry, has to make a declaration within the invoice that the imported merchandise qualify as originating items for preferential fee of responsibility beneath that settlement; and produce certificates of origin.
The declare of preferential fee of responsibility could also be denied by the correct officer with out verification if the certificates of origin is incomplete or has any alteration not authenticated by the issuing authority or the certificates is produced after its validity interval has expired, it mentioned.
The importer, it mentioned, additionally has to own all related info associated to nation of origin standards, together with the regional worth content material and submit the identical to the correct officer on request.
It additionally mentioned that an officer could, throughout the course of customs clearance or thereafter, request for verification of certificates of origin from verification authority the place there’s a doubt concerning genuineness or authenticity of the certificates for causes akin to mismatch of signatures or seal in comparison with specimens of seals and signatures obtained from the exporting nation.
Finance Minister Nirmala Sitharaman in her Budget speech had said that the federal government would evaluate ‘rules of origin’ necessities, significantly for sure delicate objects, “so as to ensure that FTAs are aligned to the conscious direction of our policy”.
She had additionally mentioned it has been noticed that imports beneath FTAs are on the rise and undue claims of FTA advantages have posed menace to the home business and such imports require stringent checks. — PTI