Amendment to Customs Tariff Determination of Origin of Goods under the Comprehensive Economic Cooperation Agreement between the Republic of India and Republic of Singapore Rules, 2005

Circular No. ES/221/2018-19                                                               September 19, 2018 

To: Members of the Council

Sub.: Amendment to Customs Tariff Determination of Origin of Goods under the Comprehensive Economic Cooperation Agreement between the Republic of India and Republic of Singapore Rules, 2005

Dear Member,

The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 79/2018– Customs (N.T.) dated 14^th September, 2018 amending Notification No. 59/2005-Customs (N.T.) dated 20^th  July, 2005 regarding Customs Tariff Determination of Origin of Goods under the Comprehensive Economic Cooperation Agreement (CECA) between the Republic of India and Republic of Singapore Rules, 2005.

These rules may be called the Customs Tariff Determination of Origin of Goods under the Comprehensive Economic Cooperation Agreement between the Republic of India and Republic of Singapore (Amendment) Rules, 2018 and shall come into force on the date of their publication in the Official Gazette.

Relevant extract of the Notification is given here-below:

In the said rules, after Rule 5, the following rule shall be inserted,:-

“ 5A. De Minimis

1. A good that does not undergo a change in tariff classification pursuant to Rule 5 and Annex B in the final process of production shall be considered as originating if:

1. for all goods except those falling within chapters 50 through 63 of the Harmonised System:

1. the value of all non-originating materials used in its production, which do not undergo the required change in tariff classification, does not exceed ten per cent. of the FOB value of the good; and

2. the good meets all other applicable criteria set forth in the rules for qualifying as an originating good; and

(b) for goods falling within chapters 50 through 63 of the Harmonised System:

1. the total weight of non-originating basic textile materials used in its production, which do not undergo the required change in tariff classification, does not exceed seven per cent of the total weight of all the basic textile material used; and

2. the good meets all other applicable criteria set forth in the rules for qualifying as an originating good.

2. The value of such non-originating materials shall be included in the value of non-originating materials for any applicable local value added content requirement for the good.”.

For more information regarding amendments, members may kindly refer to Notification No. 79/2018 – Customs (N.T.) dated 14^th September, 2018.

This is for your information.

Thanking you,

Yours faithfully,

S.BALARAJU
EXECUTIVE DIRECTOR