Customs
Tariff (Determination of Origin of Goods under the Preferential Trade Agreement
between the Governments of the Republic of India and the Republic of Korea)
Rules, 2009.
[Notification No. 187/2009- Cus (N.T.) dated
31-12-2009]
In exercise of the powers conferred by
sub-section (1) of section 5 of the Customs Tariff Act, 1975 (51 of 1975), the
Central Government hereby makes the following rules, namely:-
1. Short title and commencement.- (1) These rules may be called the Customs Tariff (Determination of Origin of
Goods under the Preferential Trade Agreement between the Governments of the
Republic of India and the Republic of Korea) Rules, 2009.
(2) They shall come
into force on the 1st day of January, 2010.
2. Definitions.- (1) In these rules, unless the
context otherwise requires,-
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(a) |
“agreement” means the
Preferential Trade Agreement between the State parties |
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(b) |
“carrier” means any vehicle for
transportation by air, sea, and land; |
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(c) |
“CIF value” means the price
actually paid or payable to the exporter for a good including the cost of the
good, insurance, and freight necessary to deliver the goods to the named port
of destination and the valuation shall be made in accordance with the customs
valuation agreement; |
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(d) |
“customs authority” means, unless the context otherwise requires,
the authority that is responsible under the law of a State party, for the
administration and application of customs laws and regulations; |
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(e) |
“customs valuation agreement” means the agreement on implementation of Article VII
of the General Agreement on Tariffs and Trade 1994, contained in Annex
1A to the WTO Agreement; |
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(f) |
“determination of
origin” means a determination as to whether a good
qualifies as an originating good in accordance with these rules; |
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(g) |
“FOB value” means the price
actually paid or payable to the exporter for a good when the good is loaded
onto the carrier at the named port of exportation, including the cost of the
good and all costs necessary to bring the good onto the carrier and the
valuation shall be made in accordance with the customs valuation agreement; |
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(h) |
“good” means any merchandise, product, article or material; |
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(i) |
“Harmonised
System” means the nomenclature of the Harmonised
Commodity Description and Coding System defined in the International
Convention on the Harmonised Commodity Description and Coding System including all
legal notes thereto, as adopted and implemented by
the State parties in their respective tariff laws; |
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(j) |
“identical goods” means goods that are same in all respects, including
physical characteristics and quality, irrespective of minor differences in
appearance that are not relevant to a determination of origin of the goods
under these rules; |
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(k) |
“indirect materials” means goods used in the production, testing or inspection of a good but
not physically incorporated into the good, or goods used in the maintenance
of buildings or the operation of equipment associated with the production of
a good including,- |
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(i) |
fuel and energy; |
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(ii) |
tools, dies and moulds; |
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(iii) |
parts including spare parts and materials used
in the maintenance of equipment and buildings; |
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(iv) |
lubricants, greases, compounding materials and
other materials used in production or used to operate equipment and
buildings; |
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(v) |
gloves, glasses, footwear, clothing, safety
equipment and supplies; |
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(vi) |
equipment, devices and supplies used for
testing or inspecting the good; |
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(vii) |
catalysts and
solvents; and, |
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(viii) |
any other goods that are
not incorporated into the good but whose use in the production of the good
can reasonably be demonstrated to be a part of that production; |
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(l) |
“materials” means ingredients, raw
materials, parts, components, sub-assemblies and goods that are used in the
production of another good and physically incorporated into another good; |
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(m) |
“non-originating materials used in production” means
any materials whose country of origin is other than the State parties to the
agreement and any materials whose origin cannot be determined; |
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(n) |
“originating materials” means materials that qualify as originating under these rules; |
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(o) |
“packing materials and containers for shipment” means goods used to protect a good during its transportation, other than
those containers or materials that are used for its retail sale; |
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(p) |
“State party” means the Republic of India or
the Republic of Korea; |
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(q) |
“producer” means a person who grows, mines, raises, harvests,
fishes, reproduces and breeds, traps, hunts, manufactures, processes,
assembles or disassembles a good; |
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(r) |
“production” means method of obtaining goods including growing, raising, mining,
extracting, harvesting, fishing, producing, reproducing and breeding,
trapping, gathering, collecting, hunting and capturing, manufacturing,
processing, assembling or disassembling a good; |
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(s) |
“simple”, in reference to the processes or operations on goods, generally
describes activities which need neither special skills nor machines,
apparatus or equipment especially produced or installed for carrying out the
activity; |
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(t) |
“used” means utilised or consumed in the production
of goods; and, |
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(u) |
“WTO” means the World
Trade Organisation. |
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3. Originating goods.- (1) For the purposes of these rules, goods
shall be deemed to have originated, if they are consigned according to rule 14
and conform to the following conditions, namely:-
(a) goods
wholly obtained or produced in the territory of the exporting State party as
specified in rule 4; or,
(b) goods
not wholly obtained or produced in the territory of the exporting State party,
provided that, they are eligible as specified in rule 5.
(2) The goods which conform to the conditions under sub-rule (1) shall be
eligible for preferential tariff treatment.
4. Goods wholly obtained or produced.- For the purposes of clause (a) of sub-rule (1)
of rule 3, the following goods shall be considered as being wholly obtained or
produced in the territory of a State party, namely:-
(a) raw or mineral goods extracted from its territory;
(b) plants and plant products harvested, picked or gathered
after being grown there;
(c) live animals born and raised there;
(d) goods obtained from animals referred to in cluase (c);
(e) goods obtained by hunting or trapping
within the land territory, or fishing or aquaculture conducted within the
internal waters or within the territorial sea of the State party;
(f) goods of sea-fishing and other goods taken from the sea
outside the territorial sea of a State party by vessels registered or recorded
with a State party and flying its flag;
(g) goods produced on
board factory ships from the goods referred to in clause (f), provided that
such factory ships are registered or recorded with a State party and fly its
flag;
(h) goods taken by a
State party or a person of a State party from the seabed or beneath the seabed
outside territorial sea of a State party:
Provided that the
State party has rights to exploit such seabed or beneath the seabed in accordance with the
1982 United Nations Convention on the Law of the Sea;
(i) articles collected
there, including waste and scrap derived from production there, which can no
longer perform their original purpose nor are capable of being restored or
repaired and are fit only for disposal or recovery of parts or raw materials,
or for recycling purposes; and,
(j) goods produced
there exclusively from goods referred to in clauses (a) to (i) or from their
derivatives, at any stage of production.
5. Goods not wholly obtained or
produced.- (1) For the purpose of clause (b) of sub-rule (1) of rule 3, goods shall be
considered as originating,-
(a) when such goods
satisfy the criteria under the Product Specific Rules provided in the
Annexure-I to the rules;
(b) when, except for goods covered under clause (a),-
(i) the regional value
content of the goods is not less than thirty five per cent. of
the FOB value of the goods ascertained as under,-
FOB value – Value of
non-originating materials as per sub-rule (2)
Regional Value Content =
------------------------------------------------------------------------------------------------ x 100;
FOB value
and,
(ii) the goods have undergone a change in tariff classification
in a sub-heading at the six digit level of the Harmonised System from the
tariff classification in which all the non-originating materials used in their
manufacture are classified:
Provided that the final
process of manufacturing is performed within the territory of the export State
party:
Provided further
that any good that does not undergo a change in tariff classification pursuant
to this sub-rule and the Annexure-I to the rules in the final process of
production shall be considered as originating if,-
(a) for goods except for those falling within
Chapter 1 to Chapter 14 and Chapter 50 to Chapter 63 of the Harmonised System,
the value of all non-originating materials used in its production, which do not
undergo the required change in tariff classification, does not exceed ten per
cent. of the FOB value of the good;
(b) for goods falling within Chapter 50 to
Chapter 63 of the Harmonised System, the total weight of non-originating basic
textile materials used in its production, which do not undergo the required
change in tariff classification, does not exceed seven per cent. of the total weight of all the basic textile materials used;
(c) the
good meets all other applicable criteria set forth in these rules for
qualifying as an originating good; and,
(d) the
value of such non-originating materials shall be included in the value of
non-originating materials for any applicable regional value content requirement
for the good.
(2) The value of the
non-originating materials used in the production of a good shall be,-
(a) for materials whose country of origin is other than the
State parties to the agreement, the CIF value; or,
(b) for materials whose origin cannot be determined, the earliest price as
ascertained to have been paid for in the territory of the State party where the
working or processing takes place, in accordance with the customs valuation
agreement.
Explanation 1:- For the purpose of calculation of value of the non-originating
materials, the following expenses shall not be included, and if already
included in such value, such expenses shall be deducted, namely:-
(a) inland
transportation costs incurred to transport the materials to the location of the
producer; and,
(b) duties, taxes and customs brokerage fees on
the material paid in the territory of one or both of the State parties, other
than duties and taxes that are waived, refunded, refundable, or otherwise
recoverable, including credit against duties or taxes paid or payable;
Explanation 2:- For the purpose of
calculation of regional value content of goods, if the material does not
satisfy the requirements of sub-rule (1), the non-qualifying value of the
material shall be that proportion which cannot be attributed to one or both of
the State parties, provided that the requirements of rule 8 at each stage of
value accumulation are satisfied;
Explanation 3:- For the purposes of these rules the basis for tariff classification is the
Harmonised System;
Explanation 4:- In applying the customs valuation agreement for the determination
of the origin of a good,-
(a) the principles of
the customs valuation agreement shall apply to domestic transactions, with
such modifications as may be required by the circumstances, as would apply to
International transactions;
(b) the provisions of
these rules shall take precedence over the customs valuation agreement to
the extent of any difference; and,
(c) the definitions
in rule 2 shall take precedence over the definitions in the customs valuation
agreement to the extent of any difference.
Explanation 5:- All costs referred to in these rules shall be recorded and maintained in
accordance with the generally accepted accounting principles applicable in the
territory of the State party in which the good is produced.
Exception.- The provisions of this
rule shall not apply in case of goods exempted from the principle of
territoriality under rule 13.
6. Indirect materials.- The origin of the indirect materials shall not
be taken into account for determining the origin of a good in a State
party.
7.
Non-qualifying operations.-
(1) Notwithstanding any provision
contained in these rules, a good shall not be considered to have satisfied the
requirements for an originating good referred to in rule 5 merely by reason of
going through the following operations or processes namely:-
(a) preserving
operations to ensure that the products remain in good condition during
transport;
(b) changes
of packaging or packing, and breaking-up and assembly of packages;
(c) washing,
cleaning or removal of dust, oxide, oil, paint or other coverings;
(d) simple
painting and polishing operations;
(e) sifting,
screening, sorting, classifying, grading or matching, including the making-up
of sets of articles;
(f) simple combining
operations, labeling, pressing, cleaning or dry cleaning, packaging operations,
or any combination thereof;
(g) cutting to length
or width and hemming, or stitching or over locking of fabrics which are readily
identifiable as being intended for a particular commercial use;
(h) trimming
and joining together, whether performed in combination or not, by
sewing, looping, linking or attaching accessory articles such as straps, bands,
beads, cords, rings and eyelets;
(i) one or more finishing operations on
yarns, fabrics or other textile articles, such as bleaching, waterproofing,
decanting, shrinking, mercerizing, or similar operations;
(j) husking,
partial or total bleaching, polishing, and glazing of cereals and rice;
(k) operations
to colour sugar or form sugar lumps;
(l) peeling,
stoning and unshelling;
(m) unflaking, crushing, squeezing, slicing, macerating
and removal of bones;
(n) sharpening,
simple grinding or simple cutting and repackaging;
(o) simple placing in bottles,
cans, flasks, bags, cases, boxes, fixing on cards or boards and all other
simple packaging operations;
(p) affixing or printing marks,
labels, logos and other like distinguishing signs on products or their
packaging;
(q) simple
mixing of products, whether or not of different kinds;
(r) simple
assembly of parts of articles to constitute a complete article or disassembly
of products into parts;
(s) simple
testing or calibrations;
(t) mere
dilution with water or another substance that does not materially alter the
characteristics of the goods;
(u) slaughtering
of animals; or
(v) a
combination of two or more operations referred to in clauses (a) to (u).
(2) All operations carried out in
the territory of a State party on a given product shall be considered together
when determining whether the working or processing undergone by that product is
to be regarded as insufficient within the meaning of sub-rule (1).
Explanation:- For the purposes of
this rule,-
(a) “preserving operations”
include drying, freezing, keeping in brine, ventilation, spreading out,
chilling, placing in salt or sulfur dioxide, removal of damaged parts, and like
operations;
(b) “simple mixing” generally describes
activities which need neither special skills nor machines, apparatus or
equipment especially produced or installed for carrying out the activity but
does not include chemical reaction which is a process, including a biochemical
process, resulting in a molecule with a new structure by breaking
intra-molecular bonds and by forming new intra-molecular bonds, or by altering
the spatial arrangement of atoms in a molecule.
8. Accumulation.- Where the originating material
from the territory of a State party are incorporated in the production
of a good in the territory of the other State party such material shall be
considered to originate in the territory of the other State party.
9. Accessories, spare parts and tools.- Any accessories, spare parts or tools delivered
with a good that form part of the standard accessories, spare parts or tools of
the good, shall be treated as originating goods if the good is an originating
good, and shall not be taken into account in determining whether all the
non-originating materials used in the production of the good undergo the
applicable change in tariff classification:
Provided that,-
(a) the
accessories, spare parts or tools are not invoiced separately from the good;
(b) the
quantities and value of the accessories, spare parts or tools are standard
trade practice for the good in the domestic market of the exporting State
party; and,
(c) if the
good is subject to a regional value content requirement, the value of the
accessories, spare parts, or tools shall be taken into account as originating
or non-originating materials, as the case may be, in calculating the regional
value content of the good.
10.
Packing materials and containers for retail sale.- For the purposes of these rules, any packaging materials and
containers in which a good is packaged for retail sale shall, if classified
with the good, not be taken into account
in determining whether all the non-originating materials used in the production
of the good undergo the applicable change in tariff classification, and, if the
good is subject to a regional value content requirement, the value of such
packaging materials and containers shall be taken into account as originating
or non-originating materials, as the case may be, in calculating the regional
value content of the good.
11.
Packing materials and containers for shipment.- For the purposes of these rules, any packing materials and containers in
which a good is packed for shipment shall not be taken into account in
determining whether,-
(a) the non-originating materials
used in the production of the good have undergone an applicable change in
tariff classification; and,
(b) the
good satisfies a regional value content requirement.
12. Fungible materials.- (1) Where identical and
interchangeable originating and non-originating materials are used in the
manufacture of a product, those materials shall be physically segregated,
according to their origin, during storage:
Provided that where the producer is facing considerable costs
or material difficulties in keeping separate stocks of identical and
interchangeable originating and non-originating materials used in the
manufacture of a product, the “accounting segregation” method may be applied:
Provided further the
accounting method shall be recorded, applied and maintained in accordance with
generally accepted accounting principles applicable in the territory of the
State party in which the product is manufactured and such method chosen shall,-
(a) permit a clear distinction to be made between originating
and non-originating materials acquired whether kept in stock or not; and,
(b) guarantee that no
more products receive originating status than would be the case if the
materials had been physically segregated.
Explanation:- For the purposes of
this rule,-
(a)
“fungible materials” means materials being of the same kind and commercial quality, possessing
the same technical and physical characteristics, and which once they are
incorporated into the finished product cannot be distinguished from one another
for origin purposes; and,
(b)
“generally accepted accounting principles” means recognised consensus
or substantial authoritative support given in the territory of a party with
respect to the recording of revenues, expenses, costs, assets, and liabilities,
the disclosure of information, and the preparation of financial statements and
may encompass broad guidelines for general application, as well as detailed
standards, practices, and procedures.
13. Principle of territoriality.- (1) Except as provided for in rule 8,
the conditions for acquiring originating status set out in rules 3 to 12 shall
be fulfilled without interruption in a State party.
(2) Except as provided for in rule 8, an originating
product exported from a State party to a State non-party shall, when returned, be considered to be non-originating unless it
can be demonstrated to the satisfaction of the customs authority in accordance with laws and regulations of the
importing State party that,-
(a) the returning product is the same as that exported; and,
(b) the returning product has not undergone any operation beyond
that necessary to preserve it in good condition while being exported:
Provided
that notwithstanding anything contained in this rule, the acquisition of
originating status in accordance with the conditions set out in rules 3 to 12
shall not be affected by working or processing carried out in the area agreed
by both State parties in the exchange of notes on materials exported from the
State party concerned and subsequently re-imported there, provided that the
conditions set out in Annexure-II to the rules are fulfilled.
14. Direct Consignment.- (1) The preferential
tariff treatment under the agreement shall be applied to a good satisfying the
requirements of these rules and which is transported directly between the
territories of the exporting State party and the importing State party.
(2) Notwithstanding
anything contained in sub-rule (1), a good of which transport involves transit
through one or more intermediate third countries, other than the territories of
the exporting State party and the importing State party, shall be considered to
be consigned directly:
Provided that,-
(a) the goods have not entered into trade or consumption there;
(b) the goods have not undergone any operation there other than
unloading and reloading or any operation required to keep it in good condition;
and,
(c) the goods have remained under the control of the customs
authority in the country of transit.
15.
Certificate of origin.- The goods eligible for preferential treatment
under the agreement shall be supported by a Certificate of Origin issued
by an authority designated by the Government of the exporting State party and
notified to the other State party as specified in the Annexure-IV to the rules
and in accordance with the detailed operational certification procedures for
implementation of these rules as specified in Annexure-III to the rules and in the format specified in the
Annexure-V to the rules.
Annexure-I
(See rule 5)
Product Specific
Rules
PART-I
For the purposes of this annexure,-
1. The following definitions apply:
(a) the “product specific rules” in this
Annexure are structured on the basis of the Harmonised System, including its
General Interpretative Rules, Section Notes and Chapter Notes;
(b) “chapter” means a
chapter of the Harmonised System;
(c) “heading” means the
first four digits in the tariff classification number under the Harmonised
System;
(d) “sub-heading” means
the first six digits in the tariff classification number under the Harmonised
System; and,
(e) “rule” means,
unless the context otherwise requires, a product specific rule.
2. The specific rule, or
specific set of rules, that applies to a particular heading or sub-heading is set out immediately
adjacent to the heading or sub-heading.
3. A requirement of a change in tariff classification applies only to
non-originating materials.
4. Where a specific rule of origin is defined using the criterion of a
change in tariff classification, and the rule is written to exclude tariff
provisions at the level of a chapter, heading or sub-heading of the Harmonised System, each State party shall construe the rule
of origin to require that materials classified in those excluded provisions be
originating for the good to qualify as originating.
PART-II
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Annexure-II
(See first proviso to rule 13)
Exemption from the Principle of Territoriality
PART-I
1. List of Goods.- (1) Each State party
shall apply exemption from the principle of territoriality under rule 13 to
goods listed in PART-II of this Annexure; and,
(2) A State party may request amendment of the
list referred to in sub-paragraph (1) which shall be considered by the other
State party in good faith and any such amendment to the list shall be adopted
when mutually agreed by both the State parties.
2. Conferring of origin.- (1) Goods referred to
in sub-paragraph (1) of paragraph 1 and any subsequent amendments, which are
re-imported as the goods that do not undergo any process beyond operations
within the territory of the re-importing State party for export as set out in
rule 7 shall be deemed to be originating in the territory of that State party:
Provided that,-
(i) the total value of
non-originating input does not exceed forty per cent. of
the FOB value of the final good for which originating status is claimed; and,
(ii) the value of
originating materials exported from the State party is not less than sixty per
cent of the total value of materials used in manufacturing the re-imported
material or good.
(2) Except as otherwise provided
for in this Annexure, provisions of these rules shall be applied mutatis mutandis to the origin
conferring of the goods to which exemption from the principle of territoriality
under rule 13 applies.
Explanation:- For the purposes of
this paragraph, “total value of non-originating input” means the value of any
non-originating materials added inside as well as any materials added and all
other cost accumulated outside the State party concerned, including transport
costs.
3. Specific implementation procedure.- (1) The Certificate of
Origin for goods covered by exemption from the principle of territoriality
under rule 13 shall be issued by the issuing authorities of the exporting State
party in accordance with Annexure-III to the rules;
(2) The
issuing authority of the exporting State party shall indicate in the
Certificate of Origin that the good is covered by exemption from the principle
of territoriality under rule 13;
(3) Except as otherwise provided for in this
Annexure, the relevant provisions of Annexure-III shall be applied mutatis mutandis to the goods to which
rule 13 applies; and,
(4) Each State
party shall assist the customs authority of importing State party to conduct
verification on goods covered by exemption from the principle of territoriality
under rule 13 in accordance with the provisions of paragraphs 11, 12, 13, and 15 of Annexure-III to the rules.
4. Special Safeguard.- (1) When a State party
determines that there is an increase of importation of a good covered by
exemption from the principle of territoriality in rule 13 into the territory of
that State party in such quantities and under such conditions as to cause, or threaten
to cause, serious injury to its domestic industry, that State party shall be
free to suspend the application of exemption from the principle of
territoriality under rule 13 to such a good for such a period of time as it may
consider necessary to prevent or remedy such injury or threat to cause injury
to the domestic industry of the State party;
(2) A State party that
intends to suspend the application of exemption from the principle of
territoriality under rule 13 pursuant to subparagraph (1) shall notify to the
other State party two months in advance of the start of the suspension period
and afford the other State party an opportunity to exchange views with it in
respect of the proposed suspension;
(3) The period mentioned
in subparagraph (1) may be extended:
Provided that, the
State party which has taken the action of suspension has determined that the
suspension continues to be necessary to prevent or remedy injury;
(4) In critical
circumstances, where delay would cause damage which would be difficult to
repair, the suspension of the application of exemption from the principle of
territoriality under rule 13 under subparagraph (1) may be taken provisionally
without two months advance notification to the other State party, on the
condition that notification shall be made before such suspension takes effect;
(5) When a State party
has made a determination mentioned in subparagraph (1) and the requirements set
out in subparagraph (2) are fulfilled, the State party concerned may suspend
the application of exemption from the principle of territoriality under rule 13
unilaterally and unconditionally, including the following, namely:-
(i) there shall be no
obligation to prove that there is serious injury;
(ii) there shall be no
obligation for advance consultation;
(iii) there shall be no
limit to the duration or frequency of suspension; and,
(iv) there shall be no
obligation for compensation.
PART - II
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Chapter 20 |
Preparations of vegetables, fruit, nuts or other parts of plants |
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200892 |
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Chapter 43 |
Furskins and artificial fur; manufactures thereof |
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430400 |
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Chapter 48 |
Paper and paperboard; articles of paper pulp, of paper or of paperboard |
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480439 |
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Chapter 55 |
Man-made staple fibers |
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550962, 550969 |
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Chapter 58 |
Special woven fabrics; tufted textile fabrics; lace; tapestries;
trimmings; embroidery |
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581099 |
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Chapter 61 |
Articles of apparel and clothing accessories, knitted or crocheted |
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610120, 610130,
610190, 610210, 610220, 610230, 610290, 610322, 610323, 610329, 610331,
610332, 610333, 610339,
610341, 610342, 610343, 610349, 610413, 610419, 610422, 610423, 610429,
610431, 610439, 610441,
610449, 610451, 610459, 610461, 610469, 610590, 610712, 610719, 610721,
610722, 610729, 610791,
610811, 610829, 610832, 611019, 611211, 611212, 611219, 611220, 611231,
611239, 611241, 611249,
611420, 611490 |
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Chapter 62 |
Articles of apparel and clothing accessories, not knitted or crocheted |
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620111, 620112,
620113, 620119, 620192, 620219, 620291, 620292, 620299, 620312, 620322,
620323, 620329, 620339,
620349, 620412, 620419, 620421, 620422, 620423, 620429, 620441, 620444,
620590, 620610, 620620,
620721, 620722, 620791, 620799, 620811, 620819, 620821, 620822, 620829,
620891, 620899, 620920,
620930, 620990, 621040, 621120, 621132, 621139, 621141, 621142, 621230,
621390, 621420 |
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Chapter 63 |
Other made up textile articles; sets; worn clothing and worn textile
articles; rags |
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630130 |
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Annexure-III
(See rule 15)
Procedure regarding claim of preferential tariff
treatment and Certificate of Origin of Goods under the agreement
1. Issuing Authorities.- (1) The Certificate of Origin shall be issued by an authority or authorities
designated by the Government of the exporting State party (hereinafter
referred to as “Issuing Authorities”) as provided in Annexure-IV to the rules.
(2) Each State party shall inform the other
State party of the names and addresses of the authorised officials of its
respective Issuing Authorities and also provide the original sets of their
specimen signatures and specimen of official seals and any subsequent change in
their names, addresses, specimen signatures or official seals shall be promptly
informed to the other State party.
(3) For the purposes of verifying the requirements for preferential tariff
treatment, the Issuing Authorities shall have the right to request for any
supporting documentary evidence or to carry out any verification considered appropriate
and consistent with its laws or practices.
2. Application for Certificate of Origin.- (1) The exporter or the
producer of the goods satisfying the criteria of preferential tariff treatment
under these rules shall apply in writing or electronically, as the case may be,
to the relevant Issuing Authorities requesting for pre-export verification of
the origin of the goods who shall, on receiving such request, conduct
pre-export verification and the result of such verification, shall be accepted,
subject to review periodically or whenever appropriate, as the supporting
evidence in verifying the origin of the said goods to be exported thereafter:
Provided that, the pre-export verification may not apply to the
goods, the origin of which, by their nature, can be easily verified.
(2) At the
time of carrying out the formalities for exporting the goods under preferential
tariff treatment, the exporter or his authorised representative shall submit a written application for issuance of a Certificate
of Origin together with appropriate supporting documents proving that the goods
to be exported qualify for issuance of the Certificate of Origin:
Provided that, where
an exporter is not the producer of the good, an application for issuance of the
Certificate of Origin may be made on the basis of the declaration of the
producer of the goods that the goods qualify as originating goods and such an
application may include the result of pre-export verification pursuant to
sub-paragraph (1).
(3) The Issuing
Authorities shall, to the best of their competence and ability, carry out
proper examination upon each application for issuance of the Certificate of
Origin to ensure that,-
(a) the application for the Certificate of Origin is duly
completed and signed by the exporter or its authorised signatory;
(b) the origin of the goods is in conformity with the rules;
(c) the other statements of the Certificate of Origin correspond
to supporting documentary evidence submitted; and,
(d) export of multiple items
declared on a single Certificate of Origin shall be allowed, provided that each
item qualifies as an originating good separately in its own right in accordance
with these rules.
3. Issuance of Certificate of Origin.– (1) A Certificate of Origin shall comprise of one original and three copies
and shall be,-
(a) in a printed format or on any other medium, including
electronic format; and,
(b) completed in English in conformity with the specimen and the
instructions contained therein as set out in the Annexure-V to the rules.
(2) The Issuing Authorities shall
retain duplicate copy and shall provide the original and the remaining two
copies to the exporter who shall forward the original along with the triplicate
copy to the importer for submission to the customs authority at the port or
place of importation:
Provided that, such triplicate copy shall be retained by the importer and the
quadruplicate copy shall be retained by the exporter.
(3) There shall be no erasures or
superimpositions on the Certificate of Origin and any unused spaces shall be
crossed out to prevent any subsequent addition and any alteration thereto,
shall be made by striking out the errors and making any addition required:
Provided that, such alterations shall be approved and certified by
an official authorised to sign the Certificates of Origin issued by the
relevant Issuing Authorities:
(4) The Certificate of Origin shall
be issued by the relevant Issuing Authorities at the time of exportation, or
within seven working days from the date of shipment whenever the goods to be
exported can be considered originating in that State party:
Provided that, under exceptional cases, where the Certificate of Origin has not
been issued at the time of exportation or within seven working days from the
date of shipment due to involuntary errors or omissions or due to any other
valid reasons, such Certificate of Origin may be issued retrospectively and
shall bear the words “ISSUED RETROSPECTIVELY” in Remarks box of the Certificate
of Origin:
Provided further that such issuance shall not
be later than one year from the date of shipment of the goods.
(5) In the event of theft, loss or
destruction of the Certificate of Origin, the exporter may apply in writing to
the Issuing Authorities that issued the Certificate of Origin for a certified
true copy of the original and the triplicate copy and such an application shall
be made on the basis of the export documents in the possession of the exporter
and on the condition that the exporter provides to the relevant Issuing
Authorities the quadruplicate copy of the original Certificate of Origin:
Provided that, any copy of the Certificate of Origin issued on the basis of such
application shall bear the endorsement of the words “CERTIFIED TRUE COPY” in
the Remarks box of the Certificate of Origin:
Provided further that such copy of the Certificate of Origin
shall bear the date of the original Certificate of Origin and shall be issued
not later than one year from the date of issuance of the original Certificate
of Origin.
4. Validity of Certificate of Origin.- (1) The Certificate of Origin shall be valid for twelve months from the
date of its issuance by the relevant Issuing Authorities in the exporting State
party and any claim for preferential tariff treatment on the basis of such
Certificate of Origin shall be made within the said period to the customs
authority of the importing State party.
(2) The Certificate of Origin submitted to the customs authority of the
importing State party after the expiration of the period specified in paragraph
(1), may be accepted for the purpose of claiming preferential tariff treatment,
in accordance with the procedures applicable in that State party:
Provided that, the failure to submit the
documents within the period specified in paragraph (1) is due to exceptional
circumstances.
Provided further that, in all cases where the
goods have been imported before the expiration of the period of validity of the
Certificate of Origin, the customs authority in the importing State party may
accept such Certificate of Origin in accordance with the procedures applicable
in that State party.
(3) A single Certificate
of Origin may be used for the purposes of,-
(a) a single
shipment of goods that results in the filing of one or more entries on the
importation of the goods into the territory of a State party; or,
(b) more
than one shipment of goods that results in the filing of one entry on the
importation of the goods into the territory of a State party.
5.
Invoicing by a State Non-party operator.- (1) The
customs authority in the importing State party may accept a Certificate of
Origin in cases where the sales invoice is issued by an operator located in a
third country or by an exporter for the account of the said operator, provided
that, the good meets the requirements of these rules.
(2) The exporter of the goods shall indicate
“third country invoicing” and information such as name, address and country of
the operator issuing the invoice, shall be stated in the Certificate of Origin.
6. Discrepancies in the Certificate of Origin.- The discovery of minor discrepancies between the statements made in the
Certificate of Origin and those made in the documents submitted to the customs
authority of the importing State party for the purpose of carrying out the
formalities for importing the goods shall not ipso facto invalidate the Certificate of Origin:
Provided that, such Certificate of Origin corresponds to the goods
under importation.
7. Claims for
preferential tariff treatment.- (1) Except as otherwise provided for in this Annexure, each State party shall require an
importer in its territory who claims preferential tariff treatment for a good
imported into its territory from the territory of the other State party to,-
(a) request for preferential tariff treatment at the time of
importation of an originating good, if required by the customs authority of the
importing State party;
(b) make a written declaration that the good qualifies as an
originating good, if it deemed necessary to do so by the importing State party;
(c) submit the original Certificate of Origin to the customs authority
of the importing State party at the time of importation, if required by the
customs authority of the importing State party;
(d) provide, on the basis of request of the customs authority of
the importing State party, any other documentation relating to the importation
of the good; and,
(e) promptly
make a corrected declaration in a manner required by the customs authority of
the importing State party, subject to the laws of the importing State party and
pay any duties along with interest and other charges owing, where the importer
has reason to believe that the Certificate of Origin, on the basis of which
such preferential tariff treatment is requested, contains information that is
not correct.
(2) Each importing State party may,
in accordance with its laws and regulations, provide that where a good that
would have qualified as an originating good when it was imported into its
territory, the importer of the good may apply for a refund of any excess duties
paid as the result of the good not having been accorded preferential tariff
treatment.
(3) For the purposes of clause (d) of sub-paragraph (1), the customs
authority of the importing State party may require an importer to demonstrate
that the good was shipped in accordance with rule 14 by submitting the
following documents, namely:-
(a) bills of lading or waybills indicating the shipping route
and all points of shipment and transhipment prior to the importation of the
good; and,
(b) where the good is shipped through or transhipped in a State non-party,
copy of the documents indicating that the good remained under control of the
customs authority of that State non-party.
(4) Where
the customs authority of the importing State party determines that a
Certificate of Origin is illegible, defective on its face or has not been
completed pursuant to paragraph 3, or discovers that discrepancies exist
between the Certificate of Origin and the written declaration, the importer
shall be granted a period of not less than five working days, but not exceeding
thirty working days from the date of request by the customs authority to
provide a copy of the corrected Certificate of Origin.
(5) An
importer making a corrected declaration of origin pursuant to clause (e) of
sub-paragraph (1) and paying any duties owing, shall not be subjected to
penalties under paragraph 13, in accordance with the laws and regulations of any of the State parties.
8.
Waiver of Certificate of Origin.- The goods sent as small packages from one private
person to another or forming part of the personal luggage of a traveller may be
admitted as originating goods without requiring the submission of a Certificate
of Origin in accordance with the laws and regulations of any the importing
State party.
9.
Record keeping requirement.- (1) The application, including any documents, submitted for the purpose of
issuance of the Certificate of Origin shall be retained by the Issuing
Authorities, the exporter and the producer for not less than five years from
the date of issuance of the Certificate of Origin.
(2) A copy of the Certificate of Origin and all relevant import documents
shall be retained by the importer for not less than five years from the date of
importation.
(3) An importer, exporter or producer may choose to maintain records
specified in sub-paragraphs (1) and (2), in any medium that allows for prompt
retrieval, including, but not limited to, digital, electronic, optical, magnetic or hard copy.
(4) An
importer, exporter or producer required to maintain documents related to origin pursuant to sub-paragraphs (1)
and (2) shall make the documents available for inspection by an officer of the
customs authority or Issuing Authorities of a State party conducting a
verification visit and shall provide facilities for inspection thereof.
10. Origin verification.- (1) The importing State party may, at random or
when it has reasonable doubt as to the authenticity of the document or as to
the accuracy of the information regarding the true origin of the goods in
question or of certain parts thereof, request the Issuing Authorities of the
exporting State party for a retroactive check and the Issuing Authorities shall
conduct such check in accordance with the following procedure, namely:-
(a) the request for such retroactive check shall be accompanied
with the Certificate of Origin concerned and the reasons shall be specified
including any additional information suggesting that the particulars given on
that Certificate of Origin may be inaccurate:
Provided that, no reasons or additional
information need to be specified when the retroactive check is requested on a
random basis by the importing State party;
(b) the Issuing Authorities receiving a request for a
retroactive check shall respond to the request promptly and reply within three
months from the date of receipt of such request;
(c) the customs authority of the importing State party may
suspend the provision of preferential tariff treatment while awaiting the
result of such verification:
Provided that, the goods pending
release due to the said verification may be released by the customs authority
of the importing State party to the importer subject to any administrative
measures deemed necessary:
Provided that, the goods shall not be
released, when they are subject to import prohibition or restriction or when
there is suspicion of fraud;
(d) the
Issuing Authorities shall promptly transmit the results of the verification
process to the customs authority of the importing State party which shall then
determine whether or not the subject good is originating; and,
(e) the State parties shall ensure that the retroactive check
process, including the process of notifying the Issuing Authorities of the exporting
State party by the customs authority of the importing State party of the
results of determination on whether the subject good is originating or not,
should be completed within six months:
Provided that, while the
process of retroactive check is being undertaken, clause (c) shall be applied
with respect to the release of the subject goods.
(2) The customs authority of the importing State party may request an
importer for information or documents relating to the origin of imported goods
in accordance with its laws and regulations before requesting the retroactive
check pursuant to sub-paragraph (1).
(3) When the customs authority of the importing State party is not
satisfied with the results of the retroactive check pursuant to sub-paragraphs (1)
and (2), it may, under exceptional circumstances, conduct verification in the
exporting State party by means of the following, namely:-
(a) written
requests for information and documentation from the exporter or producer
including written questionnaires to the exporter or producer; or,
(b) verification
visits to the premises of an exporter or producer in the exporting State party.
(4) The written request or questionnaire pursuant
to sub-paragraph (3) shall indicate the time period within which the
questionnaire or the information and documentation sought from the exporter or
the producer has to be completed and returned and such time period shall not be
less than thirty days from the date of its receipt or for such longer period as
the State parties may agree.
(5) When the
customs authority of the importing State party, on receipt of the completed
questionnaire or the information and documentation sought pursuant to
sub-paragraph (3), is of the view that more information is needed to determine
the origin of the said goods, it may request additional information from the
exporter or producer.
(6) Where an
exporter or the producer fails to return the questionnaire duly completed or
fails to provide the information and documentation required, within the period
referred to in sub-paragraph (4), the importing State party may deny
preferential tariff treatment to the said goods:
Provided that, such treatment may be denied by the importing State party after a
written notice has been served to the exporter or producer, to provide written
comments or additional information that will be taken into account prior to
completing the verification, within a period of not less than thirty days.
(7) Prior to conducting a verification visit pursuant to clause (b) of
sub-paragraph (3),-
(a) an
importing State party shall deliver a written notification of its intention to
conduct the verification visit simultaneously to:
(i) the producer or exporter whose premises are to be visited;
(ii) the Issuing Authorities of the State party in the territory
of which the verification visit is to occur;
(iii) the customs authority of the State party in the territory of
which the verification visit is to occur; and
(iv) the importer of the good subject to the verification visit;
(b) the
written notification mentioned in clause (a) shall be as comprehensive as
possible and shall include the following, namely:-
(i) the name of the customs authority issuing the notification;
(ii) the name of the producer or exporter whose premises are to
be visited;
(iii) the proposed date of the verification visit;
(iv) the coverage of the proposed verification visit, including
reference to the good subject to the verification; and
(v) the names and designation of the officials performing the
verification visit.
(c) an
importing State party shall obtain the written consent of the producer or
exporter whose premises are to be visited;
(d) when a written consent from the producer or
exporter is not obtained within thirty days from the date of receipt of the
notification pursuant to clause (a), the notifying State party may deny
preferential tariff treatment to the good referred to in the Certificate of
Origin that would have been subject to the verification visit; and,
(e) the
Issuing Authorities receiving the notification may postpone the proposed
verification visit and notify in writing the customs authority of the importing
State party of such intention within fifteen days from the date of receipt of
such notification:
Provided that, notwithstanding any such postponement, any verification visit shall
be carried out within sixty days from the date of such receipt, or within such
longer period as the State parties may agree.
(8) For the
purposes of clause (b) of sub-paragraph (3), an exporter or producer of a good
shall identify any observers to be present during such verification visit by
the customs authority of the importing State party.
(9) The importing State party conducting the verification visit shall
provide the producer or exporter and importer whose goods are subject to the
verification and the relevant Issuing Authorities with a written determination
of whether or not the subject good qualifies as an originating good and any
suspended preferential tariff treatment shall be reinstated upon the
determination that the goods qualify as originating goods.
(10) The producer or exporter shall be allowed thirty days from the date of
receipt of the written determination pursuant to sub-paragraphs (6) and (9) to
provide written comments or additional information regarding the eligibility of
the good for preferential tariff treatment:
Provided that, even on receipt of such written comments or additional information,
if the good is found to be non-originating, the final written determination
shall be communicated to the Issuing Authorities within thirty days from the
date of receipt of such comments or additional information from the producer or
exporter.
(11) The verification visit process, including the actual visit, the
determination and its notification of whether the subject good is originating
or not shall be carried out and its results shall be communicated to the
Issuing Authorities within a maximum period of six months from the first day
when the verification visit was conducted:
Provided that, while the process
of verification is being undertaken, clause (c) of sub-paragraph (1) shall be
applied with respect to the release of the subject goods.
(12) The
customs authority of a State party may, prior to the verification visit,
request the importer of the good to voluntarily obtain and supply written
information provided by the exporter or producer of the good in the territory
of the other State party:
Provided that, the failure of the importer to obtain and supply such information
shall not be considered to be the failure of the exporter or producer to supply
the information or a ground to deny preferential tariff treatment.
11. Verification of input materials.- (1) Where the
customs authority of a State party, while conducting verification of origin of
a good imported into its territory under sub-paragraph (11), conducts
verification of the origin of a material that is used in the production of the
good, the verification of the material may be conducted in accordance with the
procedures set out in sub-paragraph (3) of paragraph 10.
(2) The
customs authority of a State party may consider the material to be
non-originating in determining whether the good is an originating good where
the producer or supplier of that material does not allow the customs authority
access to information required to make a determination of whether the material
is an originating material by any, including the following means, namely:-
(a) denial
of access to its records;
(b) failure
to respond to a verification questionnaire; or
(c) refusal
to consent to a verification visit within thirty days of receipt of
notification under clause (d) of sub-paragraph (7) of paragraph 10 as made
applicable by sub-paragraph (3) of paragraph 10.
(3) A State
party shall not consider a material that is used in the production of a good to
be a non-originating material solely on the basis of postponement of a
verification visit under clause (e) of sub-paragraph (7) of paragraph 10 as
made applicable by sub-paragraph (1).
(4) Any communication made under paragraphs 10 to 11 between the State parties
shall be in the English language.
12.
Denial of Preferential Tariff Treatment.- Except as otherwise provided for in these rules, the importing State party
may deny claim for preferential tariff treatment or recover unpaid duties in
accordance with its laws and regulations, when,-
(a) the good does not meet the requirements of the rules;
(b) the
exporter, producer or importer of the good required to maintain records or
documentation under paragraph 9 fails to maintain records or documentation
relevant to determining the origin of the good or denies access to the records
or documentation;
(c) the importer, exporter or producer fails to provide
information that the State party requested pursuant to clause (a) of
sub-paragraph (3) of paragraph 10 to demonstrate that the good is an
originating good;
(d) after
receipt of a written notification for a verification visit pursuant to
sub-paragraph (7) of paragraph 10, the exporter or producer in the territory of
the other State party prevents such verification visit; or
(e) the State party finds a pattern of conduct indicating that
an importer, exporter or producer has provided false or unsupported information
or declarations that a good imported into its territory is an originating good.
Explanation:- For the purposes of clause (e),
“pattern of conduct” means at least two instances of false or unsupported
representations by an exporter or producer of a good resulting in at least two
written determinations being sent to that exporter or producer pursuant to
sub-paragraphs (6) and (9) of paragraph 10, that conclude, as a finding of
fact, that Certificates of Origin applied by that exporter or producer with
respect to identical goods contain false or unsupported representations.
13. Penalties.- (1) Each State party shall maintain measures imposing criminal, civil or
administrative sanctions for violations of its laws and regulations relating to
the rules.
(2) When it is suspected that fraudulent acts in connection with the
Certificate of Origin have been committed, the Issuing Authorities of both the
State parties shall cooperate in the action to be taken in the territory of the
respective State party against the persons involved.
Annexure-IV
(See
rule 15)
Issuing Authorities of the Certificate of Origin
1. The
following bodies and their successors are authorised to issue a Certificate of Origin for the purposes of these
rules, namely:-
(a) for
India, Export Inspection Council of India or any other agency authorised by the
Government of India, in accordance with its laws and regulations; and,
(b) for
Korea, Korea Customs Service, Korea Chamber of Commerce and Industry or any
other agency authorised by the Government of Korea, in accordance with its laws
and regulations.
2. When the authorised body
repeatedly or intentionally violates the requirements of these rules by wrongly
issuing the Certificate of Origin, the exporting State party shall revoke the
authorisation of such body to issue the Certificate of Origin under the
agreement:
Provided that, for the purpose of deciding the revocation of such authorisation,
the exporting State party shall also consider views of the customs authority of
the importing State party.
3. The exporting State party shall promptly inform the importing State
party of any such revocation, replacement or addition of a body that is
authorised to issue the Certificate of Origin under these rules.
Annexure-V
(See
rule 15)
Format for Certificate of Origin
India-Korea Comprehensive Economic Partnership
Agreement
Original (Duplicate/Triplicate/Quadruplicate)
|
1. Exporter
(name, address, country, e-mail address, telephone number, fax
number) |
Reference
No. : INDIA-KOREA
COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT PREFERENTIAL
CERTIFICATE OF ORIGIN (Combined
Declaration and Certificate)
Issued in _________(Country) _____ |
|||||
|
2.
Producer (name, address, country) (optional) |
||||||
|
3.
Importer (name, address, country) (optional) |
5.
For Official Use |
|||||
|
4.
Means of transport and route (optional) Departure date: Vessel's name/Aircraft etc.: Port of Discharge: |
6.
Remarks |
|||||
|
7. HS Code
(6 digit) |
8.Description
of goods, including quantity |
9.
Gross weight and value (FOB) |
10. Origin criterion |
11.
Number and date of Invoices |
||
|
|
|
|
|
|
||
|
12.
Declaration by the exporter The undersigned hereby declares
that the above details and statement are correct; that all goods were
produced in ………………….................
(Country) .. and that
they comply with the origin requirements specified for these goods in
the INDIA-KOREA Comprehensive Economic Partnership Agreement for the goods
exported to …………………....................
(Importing Country).......... …………………………………… Place and
date, signature of authorised
signatory |
13.
Certification It is hereby certified, on the
basis of control carried out, that the declaration by the exporter is
correct. ...................................... Place and
date, signature and stamp of issuing
authority |
|||||
|
14. □ Third country
invoicing (name, address,
country) |
||||||
Instructions for Completing the Certificate of
Origin
1. The State parties which accept
this form for the purpose of preferential tariff treatment under the
INDIA-KOREA - Comprehensive Economic Partnership Agreement (INKCEPA) are
Republic of India and Republic of Korea.
2. CONDITIONS: To enjoy preferential tariff treatment under
the INKCEPA, goods sent to a State party listed above:
(i) must
fall within a description of goods eligible for concessions in the importing
State party;
(ii) must
comply with the consignment conditions in accordance with Article 3.15 (Direct
Consignment) of Chapter Three (Rules of Origin) of the INKCEPA; and,
(iii) must
comply with the origin criteria in the Rules of Origin of the INKCEPA.
3. ORIGIN CRITERION: For goods that
meet the origin criteria, the exporter must indicate in box 10 of this
Certificate of Origin, the origin criteria met, in the manner shown in the
following table:
|
Origin Criterion |
Insert in box 10 |
|
(a) Goods wholly obtained or produced in the territory
of the exporting State party |
“WO” |
|
(b) Goods satisfying Article 3.4.1(b) of Chapter Three (Rules of Origin)
of the INKCEPA |
“CTSH +
RVC 35%” |
|
(c) Goods satisfying the Product Specific
Rules -
Change in
Tariff Classification -
Regional
Value Content -
Change in
Tariff Classification or Regional
Value Content -
Change in
Tariff Classification + Regional
Value Content -
Specific
Processes - Others |
“CC / CTH
/ CTSH” “RVC X %”
that needs to be met for the good to qualify as originating; e.g. “RVC 35%” “CC / CTH
/ CTSH” or “RVC X %” “CC / CTH
/ CTSH + RVC X %” “SP” “Others” |
|
(d) Goods satisfying rule 15
of the Rules of Origin |
“OP” |
4. EACH ARTICLE MUST QUALIFY: It
should be noted that all the goods in a consignment must qualify separately in
their own right. This is of particular relevance when similar articles of
different sizes or spare parts are sent.
5. DESCRIPTION OF GOODS: The description of
goods must be sufficiently detailed to enable the goods to be identified by the
customs officers examining them.
6. HARMONISED SYSTEM NUMBER: The Harmonised System number shall be a 6 digit code of the
goods.
7. FOR OFFICIAL USE: The customs authority of the importing State
party shall indicate in Box 5 of this Certificate of Origin whether or not
preferential tariff treatment is accorded.
8. REMARKS: In case of issuance of certificates retrospectively, Box
6 should bear the words “ISSUED RETROSPECTIVELY”, and in case of a certified
true copy, Box 6 should bear the words “CERTIFIED TRUE COPY”.
9. THIRD COUNTRY INVOICING: In cases where invoices are issued by an
operator in a third country, the “Third Country Invoicing” box should be ticked
(√) and such information as the name, address and country of the company
or the operator issuing the invoice shall be indicated in Box 14.
Note: The instructions hereon
are only used for the purposes of reference to complete the Certificate of
Origin, and thus do not have to be reproduced or printed in the overleaf page.