Reg. rules of origin on Bangkok agreement - 094/06 - Customs - Non Tariff

Reg. rules of origin on Bangkok agreement 31st August 2006 NOTIFICATION No. 94/2006-CUSTOMS (N.T.) In exercise of the powers conferred by sub-section (1) of section 5 of the Customs Tariff Act, 1975 (51 of 1975), and in supercession of Notification No. 430/1976-Customs dated 1 st November 1976 (as amended) the Central Government hereby makes the following rules, namely: - RULE 1 : Short title and commencement: (i) These rules may be called the Rules of Determination of Origin of Goods under the Asia-Pacific Trade Agreement, (formerly known as the Bangkok Agreement) Rules, 2006. (ii) These Rules shall come into force on 1 st September 2006. RULE 2: Originating products Products covered by preferential trade within the framework of the Agreement imported into the territory of a Participating State from another Participating State which are consigned directly within the meaning of Rule 6 hereof, shall be eligible for preferential concessions if they conform to the origin requirement under any one of the following conditions: (a) Products wholly produced or obtained in the exporting Participating State as defined in Rule 3; or (b) Products not wholly produced or obtained in the exporting Participating State, provided that the said products are eligible under Rule 4 or Rule 5. RULE 3: Wholly produced or obtained Within the meaning of Rule 2 (a) the following shall be considered as wholly produced or obtained in the exporting Participating State: a. raw or mineral products extracted from its soil, its water or its seabeds ; b. agricultural products harvested there; c. animals born and raised there; d. products obtained from animals referred to in paragraph (c) above; e. products obtained by hunting or fishing conducted there; f. products of sea fishing and other marine products taken from the high seas by its vessels; g. products processed and/ or made on board its factory ships exclusively from products referred to in paragraph (f) above; h. parts or raw materials recovered there from used articles which can no longer perform their original purpose nor are capable; i. used articles collected there which can no longer perform their original purpose there nor are capable of being restored or repaired and which are fit only for disposal or for the recovery of parts or raw materials; j. waste and scrap resulting from manufacturing operations conducted there; k. goods produced there exclusively from the products referred to in paragraph (a) to (j) above. RULE 4: Not wholly produced or obtained (a) Within the meaning of Rule 2(b), products worked on or processed as a result of which the total value of the materials, parts or produce originating from non- Participating States or of undetermined origin used does not exceed 55 per cent of the f.o.b. value of the products produced or obtained and the final process of manufacture is performed within the territory of the exporting Participating State shall be eligible for preferential concessions, subject to the provisions of Rule 4(c), (d) and (e). (b) Sectoral agreements (c) The formula for calculating the content of non-originating materials, and its requirement for obtaining the originating status referred to in Rule 3(a) is as follows: Value of imported non-originating Value of undetermined origin materials, parts or produce + materials, parts or produce ---------------------------------------------------------------------------------x 100 55% f.o.b. price (d) The value of the non-originating materials, parts or produce shall be: (i) The c.i.f. value at the time of importation of materials, parts or produce where this can be proven; or (ii) The earliest ascertainable price paid for the materials, parts or produce of undetermined origin in the territory of the Participating State where the working or processing takes place. (e) Whether or not the requirements of Rule 2(b) are satisfied, the following operations or processes are considered to be insufficient to confer the status of originating products: i. Operations to ensure the preservation of products in good condition either for transportation or storage (ventilation, spreading out, drying, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations); ii. Simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the making-up of sets of articles), washing, painting, cutting up; iii. Changes of packaging and breaking up and assembly of consignments; iv. Simple slicing, cutting or repacking or placing in bottles, flasks, bags, boxes, fixing on cards or boards, etc. v. The affixing of marks, labels or other like distinguishing signs on products or their packaging; vi. Simple mixing; vii. Simple assembly of parts of products to constitute a complete product; viii. Slaughter of animals; ix. Peeling, unflaking, grain removing and removal of bones; and x. A combination of two or more operations specified above. RULE 5: Cumulative rules of origin Products which comply with origin requirements provided for in Rule 2 and which are used by a Participating State as input for a finished product eligible for preferential treatment by another Participating State shall be considered as a product originating in the territory of the Participating State where working or processing of the finished product has taken place provided that the aggregate content originating in the territory of the Participating States is not less than 60 percent of its f.o.b. value. RULE 6: Direct consignment The following shall be considered as directly consigned from the exporting Participating State to the importing Participating State: (a) if the products are transported without passing through the territory of any non-Participating State : (b) the products whose transport involves transit through one or more intermediate non-Participating States with or without transshipment or temporary storage in such countries, provided that : (i) the transit entry is justified for geographical reason or by considerations related exclusively to transport requirements; (ii) the products have not entered into trade or consumption there ; and (iii) the products have not undergone any operation there other than unloading and reloading or any operation required to keep them in good condition. RULE 7: Treatment of packing When determining the origin of products, packing should be considered as forming a whole with the product it contains. However, packing may be treated separately if the national legislation so requires. 1 ["RULE 8. Certificate of origin. Products eligible for preferential concession shall be supported by a Certificate of Origin in the form specified in Annexure A and issued by an authority designated by the Government of the exporting Participating State and notified to the other Participating States, in accordance with the provisions specified in Annexure B." ] RULE 9: Prohibition and co-operation (a) Any Participating State may prohibit importation of products containing any inputs originating from States with which it does not have economic and commercial relations. (b) Participating States will do their best to co-operate in order to specify origin of inputs in the Certificate of Origin. RULE 10: Review These Rules may be reviewed as and when necessary upon request of one-third of the Participating States and may be open to such modifications as may be agreed upon. RULE 11: Special criteria percentage Products originating in least developed Participating States can be allowed a favorable 10 percentage points applied to the percentages established in Rules 4 and 5. Thus, for Rule 4, the percentage would not exceed 65 percent, and for Rule 5, the percentage would not be less than 50 percent. F.No.467/63/2006-Cus.V/ICD ANNEXURE-A SAMPLE CERTIFICATE OF ORIGIN Asia-Pacific Trade Agreement (Combined declaration and certificate) 1.Goods consigned from: (Exporter's business name, address, country) Reference No. Issued in ........... (Country) 2. Goods consigned to: (Consignee's name, address, country) 3. For Official use 4. Means of transport and route: 5. Tariff item number: 6. Marks and number of Packages: 7. Number and kind of packages/description of goods: 8.Origin criterion (see notes overleaf) 9. Gross weight or other quantity: 10. Number and date of invoices: 11. Declaration by the exporter : The undersigned hereby declares that the above details and statements are correct: that all the goods were produced in ........................ . (Country) and that they comply with the origin requirements specified for these goods in the Asia-Pacific Trade Agreement for goods exported to .................................... (Importing Country) ................................................................ Place and date, signature of authorized Signatory 12. Certificate 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 Certifying Authority Notes for completing Certificate of Origin I. General Conditions: To qualify for preference, products must: (a) fall within a description of products eligible for preference in the list of concessions of an Asia-Pacific Trade Agreement country of destination; (b) comply with Asia-Pacific Trade Agreement rules of origin. Each article in a consignment must qualify separately in its own right; and (c) comply with the consignment conditions specified by the Asia-Pacific Trade Agreement rules of origin. In general, products must be consigned directly within the meaning of Rule 6 hereof from the country of exportation to the country of destination. II. Entries to be made in the boxes Box 1 Goods Consigned from Type the name, address and country of the exporter. The name must be the same as the exporter described in the invoice. Box 2 Goods Consigned to Type the name, address and country of the importer. The name must be the same as the importer described in the invoice. For third party trade, the words To Order may be typed. Box 3 For Official Use Reserved for use by certifying authority. Box 4 Means of Transport and Route State in detail the means of transport and route for the products exported. If the L/C terms etc. do not require such details, type By Air or By Sea. If the products are transported through a third country this can be indicated as follows: e.g. By Air" Laos to India via Bangkok" Box 5 Tariff Item Number Type the 4-digit HS heading of the individual items. Box 6 Marks and Numbers of Packages Type the marks and numbers of the packages covered by the Certificate. This information should be identical to the marks and numbers on the packages. Box 7 Number and Kind of Packages; Description of Goods Type clearly the description of the products exported. This should be identical to the description of the products contained in the invoice. An accurate description will help the Customs Authority of the country of destination to clear the products quickly. Box 8 Origin Criterion Preference products must be wholly produced or obtained in the exporting Participating State in accordance with Rule 3 of the Asia-Pacific Trade Agreement Rules of Origin, or where not wholly produced or obtained in the exporting Participating State must be eligible under Rule 4 or Rule 5. (a) Products wholly produced or obtained: enter the letter A in Box 8. Products not wholly produced or obtained: the entry in Box 8 should be as follows: 1. Enter letter "B" in Box 8, for products, which meet the origin criteria according to Rule 4. Entry of letter B would be followed by the sum of the value of materials, parts or produce originating from non-Participating States, or undetermined origin used, expressed as a percentage of the f.o.b. value of the products; (example B 50 per cent); 2. Enter letter "C" in Box 8 for products, which meet the origin criteria according to Rule 5. Entry of letter C would be followed by the sum of the aggregate content originating in the territory of the exporting Participating State expressed as a percentage of the f.o.b. value of the exported product; (example C 60 per cent); 3. Enter letter "D" in Box 8 for products, which meet the special origin criteria according to Rule 11. Box 9 Gross Weight or Other Quantity Type the gross weight or other quantity (such as pieces, kg) of the products covered by the Certificate. Box 10 Number and Date of Invoices State number and date of the invoice in question. The date of the invoice attached to the Application should not be later than the date of approval on the Certificate. Box 11 Declaration by the Exporter The term "Exporter" refers to the shipper who can either be a trader or a manufacturer. Type the name of the producing country and the importing country and the place and date when the declaration is made. This box must be signed by the Company's authorized signatory. Box 12 Certification The certifying authority will certify in this Box. 2 ["ANNEXURE-B Procedure Regarding Claim of Preferential Concessions and Certificate of Origin of Goods under the Asia-Pacific Trade Agreement The following provisions shall be complied with for preferential concessions under the Asia-Pacific Trade Agreement (hereinafter referred to as "APTA") :- 1. Issuing Authorities. - An authority or authorities designated by the Government of the exporting APT A Participating State (hereinafter referred to as "Issuing Authority") shall issue the Certificates of Origin. 2. Certificate of Origin. - (1) The Certificates of Origin.- (a) shall be on an ISO A4 size paper in conformity with the specimen text set out in Annexure A, which shall be printed in English. (b) shall bear a unique reference number separately given by each place of office of issuance, (c) shall be issued manually or electronically by the Issuing Authority of the exporting APTA Participating State at the time of exportation or within three working days from the date of shipment. (d) shall be valid for one year from the date of issuance. (e) shall be without erasures and superimposition and unused spaces shall be crossed out to prevent any subsequent addition. (t) shall have the relevant rules and applicable percentage of regional content in Box 8. (2) In the event of theft, loss or destruction of a Certificate of Origin, a certified true copy of the original, issued by the issuing Authority, bearing the words "Certified True Copy" in Box 3, and the date of issuance of the original Certificate of Origin, shall be accepted and the certified true copy of a Certificate of Origin shall be issued within the validity period of the original Certificate of Origin. 3. Presentation of the Certificate of Origin. - (i) An original Certificate of Origin shall be submitted for preferential treatment to the Customs authority at the time of lodging the import entry for the products concerned. (ii) The Certificate of Origin shall be submitted to the Customs authority at the port or place of importation within its validity period. (iii) Where a Certificate of' Origin is submitted to the relevant Customs authority at the port or place of importation after the expiration of its validity, such Certificate is still to be accepted when failure to observe the time Limit results from force majeure or other valid causes beyond the control of the exporter. (iv) In all cases, the relevant Customs authority may accept such Certificate of Origin provided that the products were imported before the expiration of the validity of the Certificate of Origin. (v) Where the origin of a product is not in doubt, 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 at the port or place of importation for the purpose of carrying out the formalities for importing the products shall not ipso-facto invalidate the Certificate of Origin, if it does in fact correspond to the said products. 4. Supporting documents of direct transportation. - Under sub-rule (b) of rule 6 of the said rules, where the goods are transported through the territory outside the APTA Participating States, the following documents shall be presented to the Customs authorities at the port of import, namely :- (a) the through Bill of Lading issued in the exporting APTA Participating State; (b) the Certificate of Origin issued by the Issuing Authority of the exporting APTA Participating State; (c) the original commercial invoice in respect of the goods; and (d) supporting documents which prove the compliance with sub-rule (b) of rule 6 of the said rules. 5. Origin verification. - (i) The Customs authority may request the Issuing Authority of the exporting APTA Participating State for a retroactive random check and/or when it has reasonable doubt as to the authenticity of the documents or as to the accuracy of the origin status of the goods in question. (ii) The request shall be accompanied by the Certificate of Origin concerned and shall specify the reasons and any additional information suggesting that the particulars given on the said Certificate of Origin may be inaccurate. (iii) The Customs authority may suspend the preferential treatment while awaiting the result of the verification: Provided that it may release the goods to the importer subject to any administrative measures deemed necessary : Provided farther that the goods are not held to be subject to import prohibition or restriction and there is no suspicion of fraud. (iv) (a) The Issuing Authority receiving a request for verification shall respond to the request promptly and reply within three months after receipt of the request. (b) The verification process, including the actual process and the determination of whether the subject goods are originating or not, should be completed and the result should be communicated to the Issuing Authority within six months. (c) While the process of the verification is being undertaken, the provisions of sub-paragraph (iii) shall be applied. (v) In the cases where the Customs authority in India does not receive any reply within four months after the making of the request, the Customs authority may deny the claim for preferential treatment and in case the reply does not supply enough information to confirm the authenticity of the documents or the origin of the goods, the concerned authorities shall resolve the issue through bilateral consultation within three months, failing which the preferential treatment may be denied. 6. Change in destination. - The following procedures shall be complied with when the destination of all or parts of the products exported to a specified port is changed, before or after their arrival in India namely :- (a) If the products have already been submitted to the Customs authority in India, the Certificate of Origin shall, following a written application by the importer, be endorsed to this effect for all or parts of products by the said authorities and the original returned to the importer. (b) If the change of destination occurs during transportation to India as specified in the Certificate of Origin, the exporter shall apply in writing, accompanied by the issued Certificate of Origin, for the issuance of new Certificate of Origin for all or parts of products. 7. Imports for exhibition. - (i) Products imported for exhibition and sold during or after the exhibition shall benefit from the preferential tariff treatment provided in the APTA, on the condition that the products meet the requirements of the said rules and provided it is shown to the satisfaction of the relevant customs authorities in India that :- (a) the exporter has dispatched those products from the territory of the exporting Participating State to India where the exhibition is held and has exhibited them there; (b) the exporter has sold the goods or transferred them to a consignee in India; and (c) the products have been sold during the exhibition or immediately thereafter in the state in which they were sent for the exhibition. (ii) For the purposes of implementing the above provisions, the Certificate of Origin must be produced to the relevant customs authorities in India. (iii) The sub-paragraph (i) shall apply to exhibitions, fairs or similar shows or displays where the products remain under Customs control during the events. 8. Operational procedures for the certification and verification of origin and other related administrative matters. - The operational procedures for the certification and verification of origin and other related administrative matters agreed under APTA shall be applicable for implementing the said rules under APTA including the following matters, namely : (a) Communication of names, addresses and specimen official seals and signatures of the Issuing Authority. (b) Manner of application for issuance of Certificate of Origin and procedure to be followed by the Issuing Authority. (c) Requirement of keeping the records by the Issuing Authority. (d) Cooperation of the APTA Participating States in case of fraudulent acts and disputes concerning origin determination, classification, goods or other matters." ] ----------------------------------- Notes:- 1. Substituted vide Notification No. 79/2009-Cus. (N.T.), dated 9-7-2009, before it was read as,- Products eligible for preferential concessions shall be supported by a Certificate of Originissued by an authority designated by the government of the exporting Participating State and notified to the other Participating States in accordance with the attached sample Certificate of Origin and notes for the completion thereof. 2. Inserted vide Notification No. 79/2009-Cus. (N.T.), dated 9-7-2009,