TMI BlogNotifies Customs Tariff (Determination of Origin of Goods Under the Preferential Trade Agreement Between the Governments of the Republic of India and Malaysia) Rules, 2011.X X X X Extracts X X X X X X X X Extracts X X X X ..... se requires,- (a) carrier means any vehicle for transportation by air, sea and land; (b) CIF value means the price actually paid or payable to the exporter for goods including the cost of the goods, insurance, and freight necessary to deliver the goods to the named port of destination and the valuation shall be made in accordance with the World Trade Organisation (WTO) Agreement on Implementation of rule VII of General Agreement on Tariffs and Trade (GATT), 1994; (c) FOB value means the price actually paid or payable to the exporter for goods when the goods are loaded onto the carrier at the named port of exportation, including the cost of the goods and all costs necessary to bring the goods onto the carrier and the valuation shall be made in accordance with the World Trade Organisation (WTO) Agreement on Implementation of rule VII of General Agreement on Tariffs and Trade (GATT), 1994; (d) goods means any merchandise, product, article or material; (e) Harmonised system means the nomenclature of the Harmonised Commodity Description and Coding System defined in the International Convention on the Harmonised Commodity Desc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, planted and harvested there; (b) the live animals born and raised there; (c) the products obtained from live animals referred to in clause (b); (d) the goods obtained from hunting, trapping, fishing, aquaculture, gathering or capturing conducted there; (e) the minerals and other naturally occurring substances, not included in clauses (a), (b), (c) or (d), extracted or taken from its soil, waters, seabed or beneath their seabed; (f) the goods taken from the waters, seabed or beneath the seabed outside the territorial waters of that Party: Provided that the Party has the rights to exploit such waters, seabed and beneath the seabed in accordance with the United Nations Convention on the Law of the Sea, 1982; (g) the goods of sea-fishing and other marine goods taken from the high seas by vessels registered with a Party and entitled to fly the flag of that Party; (h) the goods processed or made on board factory ships registered with a Party and entitled to fly the flag of that Party, exclusively from goods referred to in clause (g); (i) the articles collected there which cannot perform their original purpose and are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Other Cost + Profit x 100 % 35% FOB Price (b) Indirect Method: Value of imported non-originating materials + Value of materials of undetermined origin x 100 % 65% FOB Price (3) The value of the non-originating materials shall be,- (a) the CIF value at the time of importation of the materials, parts or produce; or, (b) 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. (4) The method of calculating the FOB value is as specified in Annexure-II of these rules. (5) For the purposes of this rule,- (a) the Parties may adopt either the direct or indirect method of calculating the qualifying value content; (b) each Party shall adhere to one method; (c) any change in the method of calculation shall be notified to the other Party at least six months prior to the adoption of the new method; and, (d) any verification of the content by the importing Party shall be done on the basis of the metho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icles, washing, painting, cutting; (c) changes of packing and breaking up and assembly of consignments; (d) simple cutting, slicing and repacking or placing in bottles, flasks, bags, boxes, fixing on cards or boards, and all other simple packing operations; (e) affixing of marks, labels or other like distinguishing signs on goods or their packaging; (f) simple mixing of goods whether or not of different kinds, where one or more components of the mixture do not meet the conditions laid down in this Chapter to enable them to be considered as originating goods; (g) simple assembly of parts of goods to constitute complete goods; (h) disassembly; (i) slaughter which means the mere killing of animals; and, (j) mere dilution with water or another substance that does not materially alter the characteristics of the goods. (2) For textiles and textile goods, an article or material shall not be considered to be originating in the territory of a Party by virtue of merely having undergone any of the following, namely:- (a) simple combining operations, labelling, pressing, cleaning or dry cleaning or packa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods are packaged in such packaging materials and containers for the purposes of retail sale. Explanation.- The packing materials and the containers in which the goods are packed for the purposes of shipment and used exclusively for the transportation of the goods shall not be taken into account in determining the origin of such goods. 11. Accessories, spare parts, tools and instructional or other information material.- (1) Any accessories, spare parts, tools, instructional or other information material delivered with the goods that form part of the standard accessories, spare parts, tools or instructional or other information material of the goods, shall be treated as originating goods if the goods are originating goods, and shall not be taken into account in determining whether all the non-originating materials used in the production of the goods undergo the applicable change in tariff classification subject to the following conditions, namely:- (a) the accessories, spare parts, tools or the instructional and other information material are not invoiced separately from the goods; and, (b) the quantities and value of the accessories, spare parts, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gits of the tariff classification number under the Harmonised system; (b) heading means the first four digits of the tariff classification number under the Harmonised system; and, (c) Sub-heading means the first six digits of the tariff classification number under the Harmonised system. 2. This Annexure consists of,- (a) Column 1 Tariff heading (4-digit) (b) Column 2 Tariff sub-heading (6-digit) (c) Column 3 Product description (d) Column 4 Applicable Product-Specific Rules of Origin. 3. Where a tariff heading or sub-heading is subject to alternative Product Specific Rules, it shall be sufficient to comply with one of the rules. 4. Where the Product Specific Rule requires only regional value content, the final process of production must be performed within a Party. 5. A requirement of a change in tariff classification applies only to non-originating materials. 6. Where the change in tariff classification rule expressly excludes a change from other tariff classifications, the exclusion applies only to non-originating materials. 7. For the purposes of column 4 of this Annexure,- (a) CC means ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4401.10 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms CTH 4401 4401.21 Wood in chips or particles, coniferous CTH 4401 4401.22 Wood in chips or particles, non-coniferous CTH 4401 4401.30 Sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms CTH Tariff heading Tariff sub- heading Product description Product Specific Rule (1) (2) (3) (4) 44.02 Wood charcoal (including shell or nut charcoal), whether or not agglomerated. 4402 4402.10 - Of bamboo CTH 44.07 Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end-jointed, of a thickness exceeding 6 mm. 4407 4407.10 Coniferous: Damar Minyak, Podo, Sempilor and Other CTH 4407 4407.21 - - Mahogany ( Swietenia spp ): CTH 4407 4407.25 - - Dark Red Meranti, Light Red Meranti and Meranti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) (2) (3) (4) 44.12 Plywood, veneered panels and similar laminated wood. 4412 4412.10 - Of bamboo RVC (35) 4412 4412.31 - - Other plywood consisting solely of sheets of wood (other than bamboo), each ply not exceeding 6 mm thickness: With at least one outer ply of tropical wood specified in sub-heading Note 1 to this Chapter RVC (40) or CTSH 4412 4412.32 - - Other plywood consisting solely of sheets of wood (other than bamboo), each ply not exceeding 6 mm thickness: Other, with at least one outer ply of non-coniferous wood: RVC (40) or CTSH 4412 4412.39 - - Other plywood consisting solely of sheets of wood (other than bamboo), each ply not exceeding 6 mm thickness: Other RVC (40) or CTSH 4412 4412.99 - - Other: With at least one outer ply of non-coniferous wood: RVC (35) 44.20 Wood marquetry and inlaid wood; caskets and cases for jewellery or cutlery, and similar articles, of wood; statuettes and other ornaments, of w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etal RVC (40) or CTH Annexure-II (See rule 5) Method of calculation of FOB value 1. FOB value shall be calculated in the following manner, namely:- (a) FOB Value = ex-factory price + other costs (b) Other costs in the calculation of the FOB value shall refer to the costs incurred in placing the goods in the ship for export, including but not limited to, domestic transport costs, storage and warehousing, port handling, brokerage fees, service charges, et cetera . 2. Formula for ex-factory price,- (a) Ex-factory price = production cost + profit (b) Formula for production cost,- (i) Production cost = cost of raw materials + labour cost + overhead cost (ii) Cost of raw materials shall consist of,- (a) Cost of raw materials (b) Freight and insurance (iii) Labour cost shall include,- (a) Wages (b) Remuneration (c) Other employee benefits associated with the manufacturing process (iv) Overhead costs , (non-exhaustive list) shall include, but not limited to,- (a) real propert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods satisfying the criteria of preferential tariff treatment under these rules shall apply in writing to the relevant Issuing Authorities requesting for pre-exportation verification of the origin of the goods and the result of such verification, subject to review periodically or whenever appropriate, shall be accepted as the supporting evidence in verifying the origin of the said goods to be exported thereafter: Provided that the pre-exportation verification may not apply to the goods of which, by their nature, origin can be easily verified. (2) At the time of carrying out the formalities for exporting the goods under preferential tariff treatment, the exporter or producer or their authorised representative shall submit a written application to the relevant Issuing Authority for the issue of the certificate of origin together with appropriate supporting documents proving that the goods to be exported qualify for the issuance of a certificate of origin. 3. Pre-exportation examination.- (1) The Issuing Authority shall, to the best of their competence and ability, carry out proper examination upon each application for the certificate of origin to ensure the following, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall provide the original to the exporter who shall forward it to the importer for submission to the customs authority at the port or place of importation. (4) In the event of theft, loss or destruction of a certificate of origin, the exporter or producer or their authorised representative may apply in writing to the Issuing Authority which issued it, for the certified true copy of the original on the basis of the export documents in their possession and the copy so issued shall bear the endorsement CERTIFIED TRUE COPY in box 12 and bear the date of the original certificate of origin: Provided that the certified true copy of a certificate of origin shall be issued within the validity period of the original certificate of origin. 6. Presentation of certificate of origin.- (1) The original certificate of origin shall be submitted to the customs authority of the importing Party at the time of filing the import declaration for the goods covered under the said certificate. (2) In cases where the certificate of origin is not accepted by the customs authority of the importing Party, the customs authority may deny preferential tariff treatment on the imported goods and shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted to the customs authority of the importing Party after the expiration of its period of validity, such certificate of origin is still to be accepted when failure to observe the time limit results from force majeure or other valid reasons beyond the control of the exporter: Provided that in all cases, the customs authority of the importing Party may accept such certificate of origin provided that the goods have been imported before the expiry of the validity period of the said certificate of origin. 8. Discrepancies in the certificate of origin.- (1) Where the origin of goods 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 of the importing Party for the purpose of carrying out the formalities for importing the goods, shall not, ipso facto, invalidate the certificate of origin, if it does in fact correspond to the said goods. (2) For multiple goods declared under the same certificate of origin, a problem encountered with one of the goods listed shall not affect or delay the granting of preferential tariff treatment and customs clearan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he exporter whose premises are to be visited; (b) the proposed date of the verification visit; (c) the coverage, scope and purpose of the proposed verification visit; and, (d) the names and designation of the officials performing the verification visit. (4) The customs authority of the importing Party shall conduct the verification visit subject to receipt of the written consent of the producer or the exporter whose premises are to be visited: Provided that when the written consent of the producer or the exporter is not obtained within thirty days from the date of receipt of the written notification, the customs authority of the importing Party may deny preferential tariff treatment to the goods referred to in the said certificate of origin that would have been subject to the verification visit: Provided further that, the Issuing Authority of the exporting Party may postpone the proposed verification visit and notify the customs authority of the importing Party of such intention within fifteen days from the date of receipt of the notification: Provided further that, notwithstanding any postponement, the verification visit shall be carried out within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... customs authority or the relevant Issuing Authority and shall provide facilities for inspection thereof. 12. Change of destination of the goods.- (1) When destination of all or part of the goods exported to a specified port of the importing Party is changed, before their arrival in the importing Party, the exporter or producer shall apply in writing to the Issuing Authority of the exporting Party, accompanied with the issued certificate of origin, for issuance of new certificate of origin for all or such part of the goods. (2) When destination of all or part of the goods exported to a specified port of the importing Party is changed, after their arrival in the importing Party, the customs authority of the importing Party shall, on the basis of a written application of the importer, endorse the certificate of origin to this effect for all or such part of the goods and the original returned to the importer. 13. Documentation in case of direct consignment.- For the purpose of availing preferential tariff treatment on the imported goods, when transportation of the said goods is effected through the territory of one or more non-Parties in terms of clause (b) of rule 9 thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rty against the persons involved. Annexure-IV (see rule 14) Original/Duplicate Reference No. 1. Goods consigned from (Exporter's business name, address, country. In the case of third party invoicing, name and country of the business entity issuing the invoice) INDIA-MALAYSIA COMPREHENSIVE ECONOMIC COOPERATION AGREEMENT PREFERENTIAL TARIFF TREATMENT CERTIFICATE OF ORIGIN (Combined Declaration and Certificate) 2. Goods consigned to (Consignee's name, address, FORM IMCECA country) Issued in __________________ (Country) See Notes Overleaf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on by the exporter 12. Certification The undersigned hereby declares that the above It is hereby certified, on the basis of control details and statement are correct; that all the goods carried out, that the declaration by the were produced in exporter is correct. ............................................................. (Country) and that they comply with the origin requirements specified for these goods in the India-Malaysia Comprehensive Economic Cooperation Agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in clause (a) of sub-rule (1) of rule 5 of these rules QVC [ ]% and CTSH (d) Goods satisfying origin criteria in rule 7 of these rules Appropriate qualifying criteri 4. EACH ARTICLE MUST QUALIFY: It should be noted that all the goods in a consignment must qualify for preferential tariff treatment under this Agreement separately in their own right. This is of particular relevance when similar articles of different sizes or spare parts are declared on single invoice and single CO. 5. DESCRIPTION OF GOODS: The description of goods must be sufficiently detailed to enable the goods to be identified by the customs authority of the importing Party. Name of producer and any trade mark shall also be specified. 6. HARMONIZED SYSTEM NUMBER: The Harmonized system number shall be that of the importing Party. 7. EXPORTER: The term Exporter in Box 11 may include the producer. 8. FOR OFFICIAL USE: The customs authority of the importing Party must indicate ( ) in the relevant boxes in Box 4 whether or not preferential tariff treatment is accorded. 9. THIRD PARTY INVOICING: In cases where invoi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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