TMI BlogCustoms Tariff (Determination of Origin of Products under the Duty Free Tariff Preference Scheme for Least Developed Countries) Rules, 2015X X X X Extracts X X X X X X X X Extracts X X X X ..... Countries) Rules, 2015. (2) They shall come into force on the date of their publication in the Official Gazette. 2. Definitions .- In these rules, unless the context otherwise requires,- (a) Agreement on Customs Valuation means the agreement on implementation of Article VII of the General Agreement on Tariffs and Trade 1994, contained in Annex 1A to the World Trade Organisation Agreement. (b ) beneficiary country means the country notified in the Schedule to the notification of the Government of India, Ministry of Finance, Department of Revenue, No. 96/2008 - Customs, dated the 13th August, 2008, published vide number G.S.R. 590 (E), dated the 13th August, 2008 as amended from time to time; (c) carrier means any vehicle for transportation by air, sea or land; (d) CIF value means the price actually paid or payable to the exporter for a product including the cost of the product, insurance, and freight necessary to deliver the product to the named port of destination and the valuation thereof shall be in accordance with the provisions of the Customs Act, 1962 (52 of 1962); (e) customs authority means, the authority that is responsible for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; (o) originating materials means materials that qualify as originating under these rules; (p) packing materials and containers for shipment means products used to protect products during their transportation, other than those containers or materials that are used for their retail sale; (q) preferential tariff means the rate of customs duties applicable to an originating product under the notification of the Government of India, Ministry of Finance, Department of Revenue, No. 96/2008 - Customs, dated 13th August, 2008, published vide number G.S.R. 590 (E), dated the 13th August, 2008 , as amended from time to time, when imported into India from a beneficiary country; (r) producer means a person who grows, mines, raises, harvests, fishes, reproduces and breeds, traps, hunts, manufactures, processes, assembles or disassembles products; (s) production means the method of obtaining products including growing, raising, mining, extracting, harvesting, fishing, producing, reproducing and breeding, trapping, gathering, collecting, hunting and capturing, manufacturing, processing, assembling or disassembling; (t ) simple in reference to the processe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neficiary country has the rights to exploit that sea bed, subsoil or ocean floor in accordance with the provisions of the United Nations Convention on the Law of the Sea; (k) products produced there exclusively from the products referred to in clauses (a) to (j). 5 . Products not wholly obtained or produced .- (1) For the purposes of clause (b) of sub-rule (1) of rule 3, products not wholly obtained or produced shall be considered as originating in the exporting beneficiary country if they fulfill the following conditions:- (a) the total value of the non-originating materials used in the manufacture of the export product does not exceed seventy per cent. of the FOB value or ex-works value of the product so produced or obtained (that is, the local value added content in the exporting beneficiary country is at least thirty per cent.); (b) the product has undergone a change in tariff classification in sub-heading at the 6 digit level of the Harmonized System nomenclature from the tariff classification in which the non-originating material used in its manufacture are classified; and (c) the final process of manufacture is performed within the territory of the exporting b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts whether or not of different kinds, where one or more components of the mixture do not meet the conditions laid down in these rules to enable them to be considered as originating products; (g) simple assembly of parts of products to constitute a complete product or disassembly of products into parts or packing thereof; (h) slaughter of animals; (i) mere dilution or mixing of products with water or another substance that does not materially alter the characteristics of the products so obtained; (j) a combination of two or more operations referred to in clauses (a) to (i). (2) All operations carried out in the territory of the exporting beneficiary country on a given product shall be considered together when determining whether the working or processing undergone by that product is to be regarded as insufficient within the meaning of sub-rule (1). Explanation.- For the purposes of this rule, simple mixing generally describes activities which need neither special skills nor machines, apparatus or equipment especially produced or installed for carrying out the activity but does not include chemical reaction which is a process, including a biochemical process, resu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e remained under the customs control in the country of transit. (2) For the purpose of claiming tariff preference for the imported product considering such product as directly consigned from the exporting beneficiary country in terms of this rule, the following shall be produced before the customs authority of India at the time of importation, namely:- (a) a through bill of lading issued in the exporting country; (b) a certificate of origin issued by the issuing authority of the exporting beneficiary country; (c) a copy of the original commercial invoice in respect of the product; and (d) supporting documents in evidence that other requirements of this rule have been complied with. 11 . Competent authorities. - Each beneficiary country shall notify the name, designation, address, telephone number, fax number, and email of its issuing authority to the authority in the Central Board of Excise and Customs, Department of Revenue, Ministry of Finance, Government of India, specified in Annexure A to these rules. 12. Specimen signatures and seals .- Each beneficiary country shall provide through post and electronic mail, names and addresses of the officials authorise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the issuing authority in the beneficiary country; (d) the triplicate shall be retained by the importer; and (e) the quadruplicate shall be retained by the exporter. (7) No erasures and superimpositions shall be allowed on the certificate of origin, the alterations if any, shall be made by striking out the errors and making any addition required and such alterations shall be approved and certified by an official authorised to sign the certificate of origin, and unused spaces shall be crossed out to prevent any subsequent addition. (8) The certificate of origin shall be issued at the time of exportation, or within seven working days from the date of shipment whenever the product to be exported can be considered originating in the beneficiary country but under exceptional cases, where a certificate of origin has not been issued at the time of exportation or within seven working days from the date of shipment due to involuntary errors or omissions, or any other valid reasons, the certificate of origin may be issued retrospectively but not later than one month from the date of shipment, bearing the words ISSUED RETROSPECTIVELY in box 4 of the certificate of origin, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vided that in all cases, the custocusto ms authority at the port of importation ms authority at the port of importationms authority at the port of importation ms authority at the port of importationms authority at the port of importationms authority at the port of importationms authority at the port of importation ms authority at the port of importation ms authority at the port of importation ms authority at the port of importation ms authority at the port of importationms authority at the port of importation ms authority at the port of importation ms authority at the port of importation ms authority at the port of importation shall accept such certificate of origin if the products have been imported before the expiry of the validity period of the said certificate of origin. (4) The customs authority may request an importer for information or documents relating to the origin of imported product in accordance with the law for the time being in force in India. 18. Discrepancies in certificate of origin .- Minor discrepancies between the certificate of origin and the documents submitted to the customs authority at the port of importationat the port of importation at the port of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d (d) the issuing authority receiving a request for a retroactive check shall promptly transmit the results of the verification to the Central Board of Excise and Customs within,- (i) fifteen days of the date of receipt of the request, if the request pertains to the authenticity of seal and signatures of the issuing authority of the beneficiary country; (ii) thirty days of the date of receipt of the request, if the request is to seek a copy of the application made by the exporter or producer; (iii) three months from the date of receipt of such request, if the request is on the grounds of suspicion of the accuracy of the information regarding the origin of the product; (e) when the customs authority in India is not satisfied with the results of the retroactive check pursuant to clauses (a) and (b), it may conduct verification in the beneficiary country by means of verification visit to the premises of the exporter or producer in the beneficiary country; (f) before conducting a verification visit referred to in clause (e), the customs authority in India shall deliver a written request regarding its intention to conduct the verification visit to the issuing authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on for certificate of origin and all documents related to such application shall be retained by the issuing authority for not less than five years from the date of issuance of the said certificate. 23. Action against fraudulent acts. - When it is suspected that fraudulent acts in connection with the certificate of origin have been committed, the concerned issuing authority shall cooperate with the Indian authorities in respect of taking of penal action against the persons involved, in accordance with the law for the time being in force in India. 24. Suspension of preferential treatment.- (1) The Government of India may suspend the tariff preference in respect of all or certain products originating in a beneficiary country qualified as per rule 4 or rule 5,- (a) where there is sufficient evidence that the withdrawal is justified due to fraud, irregularities, or systematic failure to comply with any of the provisions of these rules; or (b) where imports under these rules significantly exceed the usual levels of production and export capacity of a beneficiary country. (2) The exporting beneficiary country shall, within fifteen days of the suspension of preferential t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce In column H, the entry shall be made to indicate the Country of Origin in terms of the Customs Tariff (Determination of Origin of Products under the Duty Free Tariff Preference Scheme for Least Developed Countries) Rules, 2015 as one of the following:- (i) India; (ii) the beneficiary country of the issuing authority; (iii) non-originating materials used in production. 6. Calculation (i) Value of non-originating materials used in production as a percentage of FOB/ ex-works value:____ (ii) Value of originating materials as a percentage of FOB/ ex-works value:_____ DECLARATI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure of the authorised 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, name and stamp of certifying authority Overleaf Notes to Certificate of Origin Entries to be made in Box 8 1. Preference products must be wholly produced or obtained in the exporting beneficiary country in accordance with rule 4 of the Customs Tariff (Determination of Origin of Products under the Duty Free Tariff Preference Scheme for Least Developed Countries) Rules, 2015 or where not wholly produced or obtained in the exporting beneficiary country they must be eligible under rule 5 of the said rules. 2. For products wholly produced or obtained - enter the letter A in box 8. 3. For products not wholly produced or obtained - (i) enter the letter B in box 8 for products, which meet the origin criteria according to rule 5 of the aforesaid rules. Entry of letter B shall be followed by the percentage of local value added content, as c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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