Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020)

Ref. MR/MIN/2020/089                                                                          24thAugust, 2020

To the Members of the Council

Dear Sir,

Sub: Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020)

It is to inform that the Department of Revenue, Ministry of Finance vide Notification No. 81/2020-Customs (N.T.) dated 21st August, 2020 announced implementation of the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020) which shall be appliedon import of goods into India where the importer makes claim of preferential rate of duty in terms of a trade agreement.CAROTAR, 2020 shall come into force on 21stday of September, 2020.

The aforementioned CAROTAR, 2020aims to supplement the operational certification procedures related to implementation of the Rules of Origin, as prescribed under the respective tradeagreements viz., FTA, PTA, CECA, CEPA, etc.

Some of the important essentialsof the CAROTAR, 2020 are as given below:

(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 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 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 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; and (vi) indicate if goods have been transported directly from country of origin.

(2) Notwithstanding anything contained in these rules, the claim of 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 which is not eligible for preferential tariff treatment under the trade agreement;

and in all such cases, the certificate shall be marked as “INAPPLICABLE”.

(3) Origin related information to be possessed by the importer claiming preferential rate of duty shall be:

(a) possess information 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 date of filing of 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. etc.

For further detailed information and clear understanding including the Guidelines regarding implementation of CAROTAR, 2020 in respect of Rules of Origin under Trade Agreements (FTA/PTA/CECA/CEPA) and verification of Certificates of Origin, it is necessary to go through the following dossiers attached herein:

  1. Notification No. 81/2020-Customs (N.T.) dated 21st August, 2020 issued by the Department of Revenue, Ministry of Finance
  2. Guidelines regarding implementation of section 28DA of the Customs Act, 1962 and CAROTAR, 2020 in respect of Rules of Origin under Trade Agreements (FTA/PTA/CECA/CEPA) and verification of Certificates of Origin.

In case the Members would like to have any further clarification in this regard, they may contact the Council. The Council will be in your service as always.

Thank you.

With regards,

 

RONAK RUGHANI
CHAIRMAN

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