[TO BE PUBL
Government of India
Ministry of Finance
(Department of Revenue)
(Central Board of Excise And Customs)
No.
187/2009-CUSTOMS (N.T.)
10 Pausa, 1931 (SAKA)
G.S.R. … (E).– 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,-
(a)
“agreement” means
the Preferential Trade Agreement between the State parties;
(b)
“carrier” means any vehicle
for transportation by air, sea, and land;
(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 good to the named port of
destination and the valuation shall be made in accordance with the customs valuation
agreement;
(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;
(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;
(f) “determination
of origin” means
a determination as to whether a good qualifies as an originating good in
accordance with these rules;
(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;
(h)
“good” means any merchandise, product,
article or material;
(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;
(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;
(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,-
(i)
fuel and energy;
(ii)
tools, dies and moulds;
(iii)
parts including spare parts and materials used in the
maintenance of equipment and buildings;
(iv)
lubricants, greases, compounding materials and other
materials used in production or used to operate equipment and buildings;
(v)
gloves, glasses, footwear, clothing, safety equipment
and supplies;
(vi)
equipment, devices and supplies used for testing or
inspecting the good;
(vii)
catalysts and
solvents; and,
(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;
(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;
(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;
(n)
“originating materials” means
materials that qualify as originating under these rules;
(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;
(p)
“State party”
means the
Republic of India or the Republic of Korea;
(q)
“producer” means a person who grows,
mines, raises, harvests, fishes, reproduces and breeds, traps, hunts,
manufactures, processes, assembles or disassembles a good;
(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;
(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;
(t) “used”
means utilised or consumed in the production of goods; and,
(u) “WTO” means the World Trade
Organisation.
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.
[F. No.
467/45/2006-Cus.V/ICD (Pt. – III)]
(Vikas)
Under Secretary to the Government
of India
Telephone: 011-23094182
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
|
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
|
Chapter
20 |
Preparations
of vegetables, fruit, nuts or other parts of plants |
|
200892 |
|
|
Chapter
43 |
Furskins
and artificial fur; manufactures thereof |
|
430400 |
|
|
Chapter
48 |
Paper
and paperboard; articles of paper pulp, of paper or of paperboard |
|
480439 |
|
|
Chapter
55 |
Man-made
staple fibers |
|
550962, 550969 |
|
|
Chapter
58 |
Special
woven fabrics; tufted textile fabrics; lace; tapestries; trimmings;
embroidery |
|
581099 |
|
|
Chapter
61 |
Articles
of apparel and clothing accessories, knitted or crocheted |
|
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 |
|
|
Chapter
62 |
Articles
of apparel and clothing accessories, not knitted or crocheted |
|
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 |
|
|
Chapter
63 |
Other
made up textile articles; sets; worn clothing and worn textile articles; rags |
|
630130 |
|
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,
(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)
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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) _____ |
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2.
Producer (name, address, country) (optional) |
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3. Importer
(name, address, country) (optional) |
5.
For Official Use |
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4.
Means of transport and route (optional) Departure date: Vessel's name/Aircraft etc.: Port of Discharge: |
6.
Remarks |
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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 |
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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. | |||||