Notification No. 81/2020-Customs (N.T.)
Notification No. 81/2020-Customs (N.T.)
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 21st August 2020
No. 81/2020-Customs (N.T.)
G.S.R. 521 (E).—In exercise of the powers conferred by section 156 read with section 28DA of the Customs Act, 1962 (52 of 1962), the Central Government hereby makes the following rules, namely:-
1. Short title, commencement, and application.-
(1) These rules may be called the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020.
(2) They shall come into force on the 21st day of September 2020.
(3) They shall apply to import of goods into India where the importer makes a claim of a preferential rate of duty in terms of a trade agreement.
(1) In these rules, unless the context otherwise requires, –
(a) “Act” means the Customs Act, 1962 (52 of 1962);
(b) “Preferential rate of duty” means the rate at which customs duty is charged in accordance with a trade agreement;
(c) “Preferential tariff treatment” means allowing the preferential rate of duty to goods imported into India in accordance with a trade agreement;
(d) “Rules of Origin” means rules notified for a trade agreement in terms of sub-section (1) of section 5 of the Customs Tariff Act, 1975 (51 of 1975);
(e) “Tariff notification” means notification issued under sub-section (1) of section 25 of the Act specifying preferential rates of customs duty in accordance with a trade agreement;
(f) “Verification” means verifying the genuineness of a certificate of origin or correctness of the information contained therein in the manner prescribed by the respective Rules of Origin;
(g) “Verification Authority” means the authority in exporting country or country of origin, designated to respond to verification requests under a trade agreement.
(2) The words and expressions used herein and not defined in these rules but defined in the Act shall have the same meanings respectively as assigned to them in the Act.
3. Preferential tariff claim.–
(1) To claim preferential rate of duty under a trade agreement, the importer or his agent shall, at the time of filing bill of entry,-
(a) make a declaration in the bill of entry that the goods qualify as originating goods for a preferential rate of duty under that agreement;
(b) indicate in the bill of entry the respective tariff notification against each item on which preferential rate of duty is claimed;
(c) produce a certificate of origin covering each item on which preferential rate of duty is claimed; and
(d) enter details of certificate of origin in the bill of entry, namely:
(i) certificate of origin reference number;
(ii) date of issuance of a certificate of origin;
(iii) originating criteria;
(iv) indicate if accumulation/cumulation is applied;
(v) indicate if the certificate of origin is issued by a third country (back-to-back), and
(vi) indicate if goods have been transported directly from the country of origin.
(2) Notwithstanding anything contained in these rules, the claim of a preferential rate of duty may be denied by the proper officer without verification if the certificate of origin-
(a) is incomplete and not in accordance with the format as prescribed by the Rules of Origin;
(b) has any alteration not authenticated by the Issuing Authority;
(c) is produced after its validity period has expired; or
(d) is issued for an item that is not eligible for preferential tariff treatment under the trade agreement;
and in all such cases, the certificate shall be marked as “INAPPLICABLE”.
Explanation: Clause (d) of sub-rule (2) includes the cases where goods are not covered in the respective tariff notification or the product-specific rule mentioned in the certificate of origin is not applicable to the goods.
4. Origin related information to be possessed by importer.-
The importer claiming a preferential rate of duty shall-
(a) possess information, as indicated in Form I, to demonstrate the manner in which country of origin criteria, including the regional value content and product-specific criteria, specified in the Rules of Origin, are satisfied, and submit the same to the proper officer on request.
(b) keep all supporting documents related to Form I for at least five years from the date of filing of the bill of entry and submit the same to the proper officer on request.
(c) exercise reasonable care to ensure the accuracy and truthfulness of the aforesaid information and documents.