Customs (Administration Of Rules Of Origin Under Trade Agreement) Rules

Note: It is necessary to refer to the rule associated with the exported product. Regional value content can only be used if it is allowed by a product-specific rule. In the many free trade agreements, you will find different types of rules of origin (ROOs). They are specific to each free trade agreement and generally vary from agreement to agreement and product to product. While details may vary, many methods and formulas are repeated. The new rules will help the importer correctly identify the country of origin, properly enforce the right of concession and assist customs authorities in ensuring the smooth running of legal imports under free trade agreements. For this reason, CBIC has actively engaged stakeholders in the webinar and other means to help them comply with the new rules and clarify any doubts. The new provisions fall under the following broad heads: Section 28DA of the Customs Act 1962 further stipulates that the mere presentation of a CoO does not relieve the importer of the responsibility to exercise due diligence in the accuracy and accuracy of the information provided. If the importer does not do so, a written notification should be made to the Customs Risk Management Centre (CCM) to allow for a mandatory audit of the assessment of all subsequent import shipments. However, the mandatory review of the assessment should be terminated as soon as the importer demonstrates that it has an appropriate control system in place to exercise due diligence, as required by customs legislation 1962; The new regime would strengthen tariffs on attempts to abuse tariff concessions under free trade agreements. CAROTAR, read in 2020 by circular CBIC 38/2020-Cus, of 21 August 2020, complements the existing operational certification procedures prescribed in various trade agreements (FTA/PTA/CECA/CEPA).

An importer is now required to exercise due diligence before importing the products to ensure that they meet the prescribed original criteria. The list of minimum information that the importer must have has has has also been included in the rules, as well as in the general guidelines. In addition, an importer should now include in the entry invoice certain information related to the origin, as contained in the certificate of origin. Guidelines for the implementation of Section 28DA of the Customs Act, 1962 and CAROTAR, 2020 with respect to rules of origin under trade agreements (FTA/PTA/CECA/CEPA) and verification of certificates of origin The country of origin determination rules can be very simple when a product is fully grown or manufactured and produced primarily in a country.