The Central Government has notified the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020. These Rules were notified on 21st August 2020 and come into force on 21st September 2020.
The key aspects of these Rules are as follows:
Application of the Rules
These Rules apply to goods imported into India by importers who make claims of a preferential rate of duties in terms of trade agreements.
Action to be taken by the Importer in making a Claim of a Preferential Rate of Duty
The Importer must do the following at the time of filing bill of entry:
- Make a declaration in the bill of entry that the goods qualify as originating goods,
- Indicate, in the bill of entry, the respective tariff notification against each item,
- Produce a certificate of origin covering each item and
- Enter the details of certificate of origin such as reference number, date of issue, originating criteria, etc. in the bill of entry. The bill of entry must also include an indication of whether the certificate of origin is issued by a third country and whether the goods have been transported directly from the country of origin.
Denial of Claim
A claim of a preferential rate of duty will be denied if the certificate of origin is incomplete and not in accordance with the format specified in the Rules of Origin. Likewise, the claim will also be denied if the certificate of origin has been altered without authentication from the Issuing Authority, or its validity has expired. The preferential rate will also be denied if the certificate is issued for an item that is not eligible for such treatment.
Importer To Possess All Relevant Information
This information is specified in Form I, and comprises the manner in which the country of origin criteria is satisfied. This includes the regional value content and product-specific criteria, which are specified in the Rules of Origin of the trade agreement. Section I of Form I provides guidance on filling the form, while section II calls for general information such as the name of the importer, date and number of bill of entry, description of goods, etc. Section III is divided into Part A and Part B, dealing with goods ‘wholly obtained’ or goods ‘not wholly obtained’. The Rules also stipulate that all supporting documents must be maintained for 5 years from the date of filing the bill of entry.
Verification of Certificate of Origin
During the course of customs clearance or subsequently, the appropriate officer can request for verification of certificate of origin from the verification authority. Such a request will be made if there are doubts regarding the genuineness or authenticity of the certificate for reasons such as mismatch of signatures or seal.
