Indo-Korea FTA Rules of Origin 2009
Effective from 1 Jan 2010
[Ref: Department of Revenue Customs Notification. 187
(Non Tariff) dated 31st December 2009]
|
1. Short
title and commencement 2. Definitions 3. Originating goods 4. Goods wholly obtained or produced 5. Goods not wholly obtained or produced 6. Indirect materials 7. Non-qualifying operations 8. Accumulation 9. Accessories,
spare parts and tools 10. Packing materials and containers for retail
sale 11. Packing materials and containers for
shipment 12. Fungible
materials 13. Principle of territoriality 14. Direct Consignment 15. Certificate of origin Annexure-I - Product Specific Rules Annexure-II
- Exemption from the
Principle of Territoriality 1. List of Goods 2. Conferring
of origin 3. Specific
implementation procedure 4. Special
Safeguard Annexure-III - Procedure regarding claim of
preferential tariff treatment and Certificate of Origin of Goods under the
agreement 1. Issuing Authorities 2. Application for Certificate of Origin 3. Issuance of Certificate of Origin 4. Validity of Certificate of Origin 5. Invoicing by a State Non-party operator 6. Discrepancies
in the Certificate of Origin 7. Claims for preferential tariff treatment. 8. Waiver
of Certificate of Origin 9. Record
keeping requirement 10. Origin verification 11. Verification of input materials 12. Denial
of Preferential Tariff Treatment 13. Penalties Annexure-IV - Issuing Authorities of the Certificate of
Origin Annexure-V - Format for Certificate of Origin |
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)]
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,
(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.