Home Acts & Rules Customs Origin of Goods - Rules Customs Tariff (Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India) Rules, 2009 This
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Rule 5 - Not wholly produced or obtained products.- - Customs Tariff (Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India) Rules, 2009Extract 5. Not wholly produced or obtained products.- (1) For the purpose of clause (b) of rule 3, a product shall be deemed to be originating, if - (i) the AIFTA content is not less than 35 per cent.of the FOB value; and (ii) the non-originating materials have undergone at least a change in tariff sub-heading (CTSH) level i.e. at six digit of the Harmonized System: Provided that the final process of the manufacture is performed within the territory of the exporting party. (2) For the purpose of clause (i) of sub-rule (1), the formula for calculating the 35 per cent.AIFTA content is as follows: (i) Direct Method AIFTA Material Cost + Direct Labour Cost + Direct Overhead Cost + Other Cost + Profit x 100 % ¡Ý 35% FOB Price (ii) Indirect Method Value of Imported Non-AIFTA Materials, Parts or Produce + Value of Undetermined Origin Materials, Parts or Produce x 100 % ¡Ü 65% FOB Price (3) The parties are free to adopt the method of calculating the AIFTA content, whether it is the direct or indirect method and any verification of the AIFTA content by the importing party shall be done on the basis of the method used by the exporting party. (4) Each party shall adhere to one method of calculating AIFTA content to promote transparency, consistency and certainty: Provided that any change in the method of calculation shall be notified to all the parties at least six months prior to the adoption of the new method. (5) The value of the non-originating materials shall be - (i) the CIF value at the time of importation of the materials, parts or produce; or (ii) the earliest ascertained price paid for the materials, parts or produce of undetermined origin in the territory of the party where the working or processing takes place. (6) The method of calculating for AIFTA content is as set out in Annexure I annexed to these rules.
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