Govt Frames Norms for Enforcement of ‘Rules of Origin’ for Imports Under FTAs

Under such agreements, two trading partners significantly reduce or eliminate import/customs duties on the maximum number of goods traded between them. According to the notification, to claim preferential rate of duty under a trade agreement, the importer or his agent, at the time of filing bill of entry, has to make a declaration in the bill that the imported products qualify as originating goods for preferential rate of duty under that agreement; and produce certificate of origin. The claim of preferential rate of duty may be denied by the proper officer without verification if the certificate of origin is incomplete or has any alteration not authenticated by the issuing authority or the certificate is produced after its validity period has expired, it said.

The importer, it said, also has to possess all relevant information related to country of origin criteria, including the regional value content and submit the same to the proper officer on request. It also said that an officer may, during the course of customs clearance or thereafter, request for verification of certificate of origin from verification authority where there is a doubt regarding genuineness or authenticity of the certificate for reasons such as mismatch of signatures or seal when compared with specimens of seals and signatures received from the exporting country. Finance Minister Nirmala Sitharaman in her Budget speech had stated that the government would review ‘rules of origin’ requirements, particularly for certain sensitive items, “so as to ensure that FTAs are aligned to the conscious direction of our policy”.

She had also said that it has been observed that imports under FTAs are on the rise and undue claims of FTA benefits have posed threat to the domestic industry and such imports require stringent checks..