Customs tariff (determination of origin of
goods under the Preferential Trade Agreement between the
Transitional Islamic State of Afghanistan and Republic of India)
Rules, 2003
[Notification No. 33/2003-Cus. (N.T.), dated 13-5-2003]
In exercise of the powers conferred by
sub-section (1) of section 5 of the Customs Tariff Act, 1975 (51
of 1975), the Central Government hereby makes the following
rules, namely :-
1.Short title and commencement. - (1)These
rules may be called the Customs Tariff (Determination of Origin
of Goods under the Preferential Trade Agreement between the
Transitional Islamic State of Afghanistan and Republic of India)
Rules, 2003.
(2) They shall come
into force on the date of their publication in the Official
Gazette.
2.Application. - These rules shall apply
to goods consigned from the territory of either of the
Contracting Parties.
3.Determination of Origin. - No product
shall be deemed to be the produce or manufacture of either
country unless the conditions specified in these rules are
complied with in relation to such products, to the satisfaction
of the appropriate Authority.
4.Declaration at the time of importation.
- The importer of the product shall, at the time of importation
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(a) make a claim that
the products are the produce or manufacture of the country from
which they are imported and such products are eligible for
preferential treatment under the Agreement, and
(b) produce the
evidence specified in these rules.
Explanation :- For the purposes of this notification,
"Preferential treatment" in relation to any product means the
exemption granted under the notification of the Government of
India in the Ministry of Finance (Department of Revenue), No.
76/2003-Customs, dated the 13th May, 2003 and includes
preferential concessions.
5.Originating products. - Products
covered by the Agreement imported into the territory of a
Contracting Party from another Contracting Party which are
consigned directly within the meaning of rule 9 hereof, shall be
eligible for preferential treatment if they conform to the origin
requirement under any one of the following conditions :
(a) Products wholly
produced or obtained in the territory of the exporting
Contracting Party as defined in rule 6; or
(b) Products not
wholly produced or obtained in the territory of the exporting
Contracting Party, provided that the said products are eligible
under rule 7 or rule 8 read with rule 7.
6.Wholly produced or obtained. - Within
the meaning of rule 5(a), the following shall be considered as
wholly produced or obtained in the territory of the exporting
Contracting Party, namely : -
(a) raw or mineral
products, including mineral fuels, lubricants and related
materials as well as mineral or metal ores, extracted from its
soil, its water or its seabed;
(b) vegetable
products, including agricultural and forestry products, harvested
there;
(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 from the high seas by its
vessels;
(g) products
processed and/or made on board its factory ships exclusively from
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) products
extracted from the seabed or below seabed which is situated
outside its territorial waters, provided that it has exclusive
exploitation rights;
(k) goods produced
there exclusively from the products referred to in clauses (a) to
(j) above.
Explanation I :- "Vessels" shall refer to fishing vessels
engaged in commercial fishing, registered in the country of the
Contracting Party and operated by a citizen or citizens of the
Contracting Party or partnership, corporation or association,
duly registered in such country, at least 60 per cent of equity
of which is owned by a citizen or citizens and/or Government of
such Contracting Party or 75 per cent by citizens and/or
Governments of the Contracting Parties. 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 Contracting Party will also be
eligible or preferential treatment.
Explanation II :- In respect of vessels or factory ships
operated by Government agencies, the requirements of flying the
flag of the Contracting Party does not apply.
Explanation III :- For the purpose of this Agreement, the
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) of Rule 6.
7.Not wholly produced or obtained. - (a)Within
the meaning of rule 5(b), products worked on, or processed as a
result of which the total value of the materials, parts or
produce originating from countries other than the Contracting
Parties 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 Contracting Party shall be eligible for preferential
treatment, subject to the provisions of clauses (b), (c), (d) and
(e) of rule 7 and rule 8.
(b)Non-originating materials shall
be considered to be sufficiently worked or processed when the
product obtained is classified in a heading, at the four digit
level, of the Harmonised Commodity Description and Coding System
different from those in which all the non-originating materials
used in its manufacture are classified.
(c)In order to determine whether a
product originates in the territory of a Contracting Party, it
shall not be necessary to establish whether the power and fuel,
plant and equipment and machines and tools used to obtain such
products originate in third countries or not.
(d)The following shall in any event
be considered as insufficient working or processing to confer the
status of originating products, whether or not there is a change
of heading, namely :-
(1) Operations to
ensure the preservation of products in good condition during
transport and storage (ventilation, spreading out, drying,
chilling, placing in salt, sulphur dioxide or other aqueous
solutions, removal of damaged parts, and like operations).
(2) Simple
operation's consisting of removal of dust, sifting or screening,
sorting, classifying, matching (including the making-up of sets
of articles), washing, painting, cutting up.
(3) (i)
changes of packing and breaking up and assembly of consignments;
(ii) simple slicing, cutting and repacking or
placing in bottles, flasks, bags, boxes, fixing on cards or
boards, etc., and all other simple packing operations.
(4) The affixing of
marks, labels or other like distinguishing signs on products or
their packaging.
(5) Simple mixing of
products, 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.
(6) simple assembly
of parts of products to constitute a complete product.
(7) a combination of
two or more operations specified in (a) to (f).
(8) slaughter of
animals.
(e)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 Contracting Parties
where the working or processing takes place.
8.Cumulative rules of origin. - In
respect of a product, which complies with the origin requirements
provided in rule 5(b) and is exported by any Contracting Party
and which has used material, parts or products originating in the
territory of the other Contracting Party, the value addition in
the territory of the exporting Contracting Party shall be not
less than 30 per cent of the f.o.b. value of the product under
export subject to the condition that, the aggregate value
addition in the territories of the Contracting Parties is not
less than 40 per cent of the f.o.b. value of the product under
export.
Explanation :- Cumulation as implied by Rule 8 means that
only products which have acquired originating status in the
territory of one Contracting party may be taken into account when
used as inputs for finished product eligible for preferential
treatment in the territory of the other Contracting Party.
9.Direct consignment. - The following
shall be considered to be directly consigned from the exporting
country to the importing country, namely :-
(a) if the products
are transported without passing through the territory of any
country other than the countries of the Contracting Parties.
(b) the products
whose transport involves transit through one or more intermediate
countries 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 requirements;
(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.
10.Treatment of packing. - 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.
11.Certificate of origin. - Products
eligible for a Certificate of origin in the form annexed shall
support preferential treatment issued by an authority designated
by the Government of the exporting country and notified to the
other country in accordance with the certification procedures to
be devised and approved by both the Contracting Parties.
12.Prohibitions. - Either country may
prohibit importation of products containing any inputs
originating from States with which it does not have economic and
commercial relations.
13.Co-operation between contracting
parties. - (a)The Contracting Parties will do their best
to co-operate in order to specify origin of inputs in the
Certificate of origin.
(b)The Contracting Parties will
take measures necessary to address, to investigate and, where
appropriate, to take legal and/or administrative action to
prevent circumvention of this Agreement through false declaration
concerning country of origin or falsification of original
documents.
(c)Both the Contracting Parties
will co-operate fully, consistent with their domestic laws and
procedures, in instances of circumvention or alleged
circumvention of the Agreement to address problems arising from
circumvention including facilitation of joint plant visits and
contacts by representatives of both Contracting Parties upon
request and on a case-by-case basis.
(d)If either Party believes that
the rules of origin are being circumvented, it may request
consultation to address the matter or matters concerned with a
view to seeking a mutually satisfactory solution. Each party will
hold such consultations promptly.
14.Review. - These rules may be reviewed
as and when necessary upon request of either Contracting Party
and may be open to such modifications as may be agreed upon.
CERTIFICATE OF ORIGIN
1. Goods consigned from (Exporters
Business Name, Address, Country)
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Reference No.
INDIA-AFGHANISTAN PREF-ERENTIAL TRADING
ARRAN-GEMENT (IAPTA)
(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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4. For Official use
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3. Means of transport and route (as
far as known)
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5. Tariff item number
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6. Marks and numbers of packages
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7. Number and kind of packages
description of goods
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8. Origin criterion (see Notes
overleaf)
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9. Gross weight or other quantity
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10. Number and date of invoice
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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 IAPTA for goods exported to
.......................(Importing Country)
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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.
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.................................................
Place and date, signature of the
authorised signatory
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.................................................
Place and date, signature of the
authorised signatory
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To qualify for preference, products must
:
Ø fall within a
description of products eligible for concessions in the country
of destination under this agreement.
Ø comply with
IAPTA Rules of Origin. Each Article in a consignment must qualify
separately in its own right; and
Ø comply with
the consignment conditions specified by the IAPTA Rules of
Origin. In general products must be consigned directly within the
meaning of Rule 9 hereof from the country of exportation to the
country of destination.
II.Entries to be made in Box 8
Preference products must be wholly
produced or obtained in the exporting Contracting Party in
accordance with Rule 6 of the IAPTA Rule of Origin, or where not
wholly produced or obtained in the exporting Contracting Party
must be eligible under Rule 7 or Rule 8.
Products wholly produced or obtained enter
the letter 'A' in box 8.
Products not wholly produced or obtained,
the entry in box 8 should be as follows:
Enter letter CB' in box 8 for products,
which meet the origin criterion according to Rule 7. Entry of
letter would be followed by the sum of the value of materials,
parts of produce originating from non-contracting parties or
undetermined origin used, expressed as a percentage of the f.o.b.
value of the products: (example 'B' ( ) per cent).
Enter letter 'C' in box 8 for products,
which meet the origin criteria according to Rule 8. Entry of
letter 'C' would be followed by the sum of the aggregate content
originating in the territory of the exporting Contracting Party
expressed as a percentage of the f.o.b. value of the exported
product (example 'C' ( ) per cent).
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