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Customs Tariff (Determination of Origin of Goods under the Agreement on
Global System of Trade Preferences among Developing Countries) Rules, 1989
Notification
No. 281 dated 18th
December 1989
In
exercise of the powers conferred by sub-section (1) of section 25 of the Customs
Tariff Act, 1975 (51 of 1975), the Central Government hereby makes the following
rules, namely:
(1)
These rules may be called the Customs Tariff (Determination of Origin of
Goods under the Agreement on Global System of Trade Preferences among Developing
Countries) Rules, 1989.
(2)
They shall come into force on the date of their publication in the
Official Gazette.
These
rules shall apply to products consigned from any participant.
In
these rules, unless the context otherwise requires: -
(a)
GSTP means the agreement on Global System of Trade Preferences among
Developing Countries signed by developing countries at Belgrade, Yugoslavia on
the 13th April 1988;
(b)
�Notification� means the notification of the Government of India in
the Ministry of Finance (Department of Revenue) No. 236/89-Customs, dated the 1st
September 1989;
(c)
�Participant� means a country listed in Appendix l or Appendix ll to
the Notifications;
(d)
�Preferential concession�, in relation to any product means the
exemption granted under the notification;
(e)
Word and expressions used in these rules and not defined herein but
defined in the Customs Act, 1962 (52 of 1962), shall have the meaning,
respectively, assigned to them in that Act.
4.
Determination of origin:
No
product shall be deemed to be the produce or manufacture of a participant unless
the Assistant collector of customs is satisfied that the conditions specified in
the Schedule to these rules are complied with
in relation to such products.
5.
Claim at the time of importation:
The
importer of the product shall, at the time of importation: -
(a)
make a claim that the products are the produce or manufacture of the
participant from which they are imported and such products are eligible for
preferential concession, and
(b)
produce the evidence specified in the
Schedule to these rules.
THE
SCHEDULE (See rules 4 and 5)
Products
covered by preferential trading arrangements within the framework of the GSTP
imported into the territory of a participant from another participant which are
consigned directly within the meaning of para 5 hereof, shall be eligible for
preferential concessions if they conform to the origin requirement under any one
of the following conditions:
(a)
Products wholly produced or obtained in the exporting participants as defined
in para 2; or
(b)
Products not wholly produced or obtained in the exporting participant,
provide that the said products are eligible under para
3 or para 4.
2.
Wholly produced or obtained:
Within
the meaning of para 1(a), the following
shall be considered as wholly produced or obtained in the exporting participant:
(a)
raw or mineral products extracted from its soil, its water or its seabeds
(Includes mineral fuels lubricants and related materials as well as mineral
or metal ores);
(b)
agricultural products harvested there (Includes forestry products);
(c)
animals born and raised there;
(d)
products obtained from animals referred to in clause (c) above;
(e)
products obtained by hunting or fishing conducted there,
(f)
products of sea fishing and other marine products taken from the
high seas by its vessels {(Vessels shall refer to fishing vessel engaged in
commercial fishing, registered in a participant country and operated by a
citizen or citizens or Governments of participant�s or partnership,
corporation or association, duly registered in such participants country, at
least sixty percent of equity of which is owned by a citizen or citizens and/ or
Government of such participants, or seventy five percent by citizens and/ or
Governments of the participants. However, the products taken from vessels,
engaged in commercial fishing under Bilateral Agreements which provide for
chartering /leasing of such vessels and/ or sharing of catch between
participants will also be eligible for preferential concessions)
(In respect of vessels or factory ships operated by Government Agencies, the
requirements of plying the flag of a participant does not apply)};
(g)
products processed and/ or made on board its factory ships exclusively
from products referred to in clause (f) above (For the purpose of this
agreement, term �factory ship� means any vessel, as defined, used for
processing and/or making on board products exclusively from those products
referred to in clause (f) above);
(h)
used articles collected there, fit only for the recovery of raw
materials;
(i)
waste and scrap resulting from manufacturing operations conducted there;
(j)
goods produced there exclusively from the products referred to in clauses
(a) to (j) above
3.
Not wholly produced or obtained:
(a)
Within the meaning of para 1(b),
products worked on or processed as a result of which the total value of the
materials, parts or produce originating from non-participants or of undetermined
origin used does not exceed 50% of the f.o.b. value of the products produced or
obtained and the final process of manufacture is performed within the territory
of the exporting participant shall be eligible for preferential concessions,
subject to the provisions of clause (c) of para 3 and para
4;
(b)
Sectoral agreements (In respect of products traded within the
framework of sectoral agreements negotiated under the GSTP, provision may need
to be made for special criteria to apply. Consideration may be given to these
criteria as and when the sectoral agreements are negotiated);
(c)
The value of the non-originating materials parts or produce shall be;
(i)
The c.i.f. value at the time of importation of the materials, parts or produce
where this can be proven; or
(ii)
The earliest ascertainable price paid for the materials, parts or produce of
undetermined origin in the territory of the participant where the working or
processing takes places.
4.
Cumulative rules of origin:
Products
which comply with origin requirement provided for in para
1 and which are used by a participant as input for a finished product
eligible for preferential treatment by another participant shall be considered
as a product originating in the territory of the participant where working or
processing of the finished product has taken place provided that the aggregate
content originating in the territory of the participant is not less than 60
percent of its f.o.b. value. (Partial� cumulation as implied by Para 4
above means that only products, which have acquired originating status in the
territory of one Participant, may be taken into account when used as inputs for
a finished product eligible for preferential treatment in the territory of
another participant).
The
following shall be considered as directly consigned from the exporting
participant to the importing participant:
(a)
if the products are transported without passing through the territory of
any non-participant;
(b)
the products whose transport involves transit through one or more
intermediate non-participants with or without transhipment or temporary storage
in such countries, provided that:
(i)
the transit entry is justified for geographical reason or by considerations
related exclusively to transport equipments;
(ii)
the products have not entered into trade or consumption there; and
(iii)
the products have not undergone any operation there other than unloading and
reloading or any operation required to keep them in good condition.
When
determining the origin of products, packing should be considered as forming a
whole with the product it contains. However, packing may be treated separately
if the national legislation so requires.
7.
Certificate of origin:
Products
eligible for preferential concessions shall be supported by a Certificate
of Origin in the form annexed issued by an Authority designated by the
Government of the exporting participant and notified to the other participants
in accordance with the Certification Procedures to be devised and approved by
the participants.
(a)
in conformity with paragraphs (a) and (b) of Article 3 and Article15 of
the Agreement on the GSTP and national legislations, any participant may
prohibit importation of products containing any inputs originating from States
with which it does not have economic and commercial relations;
(b)
Participants will do their best to co-operate in order to specify origin
of inputs in the Certificate of Origin.
These
Rules may be reviewed as and when necessary upon request of one third of the
participants and may be open to such modifications as may be agreed upon.
10.
Special criteria percentage:
Products
originating in participating less developed countries can be allowed a favorable
10 percentage points applied to the percentages established in para
3 and 4. Thus, for para
3, the percentage would not exceed 60 percent, and for para
4, the percentage would not be less than 50 percent.
ANNEXURE
(See para 7)
Certificate
of Origin
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1.
Goods consigned from (Exporter�s business name, address, country):
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Reference
No.: _______________________
GLOBAL
SYSTEM FOR TRADE PREFERENCES (Combined declaration and certificate)
Issued
in ____________________ (Country)
(See
notes overleaf)
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2.
Goods consigned to (Consignee�s name, address, country):
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3.
Means of Transport and route (as far as known):
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4.
For official use:
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5.
Tariff Item No.
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6.
Marks and Number of packages
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7.
Number and kind of packages: description of goods
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8.
Origin Criteria (See Note Overleaf)
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9.
Gross Weight or Quantity
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10.
Number and date of Invoices
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11.
Declaration by the exporter:
The
undersigned hereby declares that the above details and statements are
correct, that all the goods were produced in
__________________________ (country) and that they comply with
the origin requirements specified for those goods in the Global System
of Trade Preferences for goods exported to
_______________________________ (importing country).
Place
______________
Date
_______________
Signature
of authorised signatory __________________________
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12.
Certificate:
It
is hereby certified, on the basis of control carried out, that the
declaration by the exporter is correct.
Place
______________
Date
_______________
Signature
and stamp of Certifying Authority __________________________
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I:
GENERAL CONDITIONS
To
qualify for preference, products must:
(a)
fall within a description of products eligible for preference in the schedule
of concessions of the GSTP country of destination;
(b)
comply with the GSTP Rules of Origin. Each articles in a consignment must
qualify separately in its own right; and
(c)
comply with the consignment conditions specified by the GSTP Rules of Origin.
In general, products must be consigned directly within the meaning of para
5 hereof from the country of exportation to the country of destination.
Il:
Entries to be made in box 8
Preference
products must be wholly produced or obtained in the exporting participant in
accordance with para 2 of the GSTP Rules of
Origin, or where not wholly produced or obtained in the exporting participants
must be eligible under para 3 or para
4.
(a)
Products wholly produced or obtained enter the letter �A� in box
8;
(b)
Products not wholly produced or obtained; the entry in box
8 should be as follows;
1.
Enter letter �B� in box 8,
for products, which meet the origin criteria according to para
8. Entry of letter �B� would be followed by the sum of the value of
materials, parts or produce originating from non-participants, or undetermined
origin used, expressed as a percentage of the f.o.b. value of the exported
products; (example �B� 50 percent).
2.
Enter letter �C� in box 8
for products, which meet the origin criteria according to para
4. Entry of letter �C� would be followed by the sum of the aggregate
content originating in the territory of the exporting participant expressed as
a percentage of the f.o.b. value of the exported product: (example �C� 60
percent).
3.
Enter letter �D� in box 8
for products, which meet the special origin criteria according to rule
10.
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