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. Under Rule 3 of the internal regulation, the importer must provide certain information when presenting the entry certificates in order to enforce a preferential rate of duty under a trade agreement. These include the customs declaration for each goods subject to preferential duty, mandatory indications (such as reference number, date of issue, original criteria) and copies of the certificate of origin for each of these products, information on the manufacturing process used for imported goods. It must also indicate, among other things, whether or not the goods were transported directly from the country of origin. The importer is also required to collect and store information in accordance with the formality 1 of the internal regulations. The aim is to highlight how the country of origin criteria, including regional value, and product-specific criteria set out in the rules of origin are met. It is presented to the appropriate officer upon request. Source: [Communication 81/2020-Zoll,N.T.) – Circular 38/2020 of 21 August 2020] The new regulation would strengthen customs in controlling an attempt to abuse tariff concessions under free trade agreements. i.
Previously, an importer was only required to present to customs authorities a certificate of origin (`CoO`) issued by a competent authority of the trading partner to apply for a preferential tariff. However, with the introduction of CAROTAR, which is read in section 28DA of the Customs Act 1962 (hereafter the Customs Act), an importer claiming a preferential tariff rate is required, in addition to the manufacture of the CoO in the entry bulletin, to make a specific declaration for products qualified as of origin. In addition, the entry post should also contain some mandatory information about the CoO; ….. in accordance with Section 28DA of the Act, appropriate data-based controls are required. 2. If it is established that an importer has repressed the facts, intentional false testimony or agreements with the seller or any other person for the purpose of gaining an undue benefit from a trade agreement, his right to a preferential tariff is not permitted and is currently punished by law or any other law. 3. In the event of a conflict between a provision of these rules and a provision of the rules of origin, the determination of the rules of origin is a priority in the scope of the conflict. 4. The central government may, by way of notification to the Official Journal, relax the provisions of these provisions for persons and persons deemed necessary. Form I (see Rule 4) Section I (Guide to Presenting This Form) Under Section 28DA of the Customs Act 1962, an importer who submits a preferential law application is required to have sufficient information on how the country of origin criteria, including the regional content of the value and product-specific criteria, are governed by the rules of origin. ….
As noted above, the Central Board of Indirect Taxes and Customs (CBIC) recently notified the rules relating to customs administration (management of rules of origin under the trade agreement) 2020 (CAROTAR, 2020).