Rules of Determination of Origin of Goods Under the
Asia-Pacific Trade Agreement Rules, 2006
Notification No. 94/2006-Cus. (N.T.), dated 31-8-2006
Notification No. 430-Cus., dated 1-11-1976
as amended by Notifications No. 64-Cus., dated 1-4-1978; No.
22-Cus., dated 27-1-1979, No. 192-Cus., dated 14-8-1981; No.
30/95-Cus.(N.T.), dated 22-5-1995
In exercise of the powers conferred by sub-section (1) of
section 5 of the Customs Tariff Act, 1975 (51 of 1975), and in
supercession of Notification No. 430/1976-Customs dated 1st
November 1976 (as amended) the Central Government hereby makes
the following rules, namely : -
RULE 1 : Short title and commencement :-
(i) These rules may be called the
Rules of Determination of Origin of Goods under the Asia-Pacific
Trade Agreement, (formerly known as the Bangkok Agreement) Rules,
2006.
(ii) These Rules shall come into force on
1st September 2006.
RULE 2 : Originating products
Products covered by preferential trade within the framework
of the Agreement imported into the territory of a Participating
State from another Participating State which are consigned
directly within the meaning of Rule 6 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 Participating State as defined in Rule 3; or
(b) Products not wholly produced or
obtained in the exporting Participating State, provided that the
said products are eligible under Rule 4 or Rule 5.
RULE 3 : Wholly produced or obtained
Within the meaning of Rule 2(a) the following shall be
considered as wholly produced or obtained in the exporting
Participating State :
(a) raw or mineral products, extracted
from its soil, its water or its seabeds
(b) agricultural products harvested
there;
(c) animals born and raised there;
(d) products obtained from animals
referred to in paragraph (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;
(g) products processed and/or made on
board its factory ships exclusively from products referred to in
paragraph (f) above;
(h) parts or raw materials recovered
there from used articles which can no longer perform their
original purpose nor are capable;
(i) used articles collected there
which can no longer perform their original purpose there nor are
capable of being restored or repaired and which are fit only for
disposal or for the recovery of parts or raw materials;
(j) waste and scrap resulting from
manufacturing operations conducted there;
(k) goods produced there exclusively from
the products referred to in paragraph (a) to (j) above.
RULE 4 : Not wholly produced or obtained
(a) Within the meaning of Rule 2(b),
products worked on or processed as a result of which the total
value of the materials, parts or produce originating from non-
Participating States or of undetermined origin used does not
exceed 55 per cent 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 Participating State shall
be eligible for preferential concessions, subject to the
provisions of Rule 4(c), (d) and (e).
(b) Sectoral agreements
(c) The formula for calculating the
content of non-originating materials, and its requirement for
obtaining the originating status referred to in Rule 3(a) is as
follows :
Value of imported non-originating materials, parts or
produce |
+ |
Value of undetermined origin materials, parts or
produce |
× 100 ≤55% |
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f.o.b. price |
(d) The value of the non-originating
materials, parts or produce shall be :
(i) the c.i.f. value at
the time of importation of 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 Participating State
where the working or processing takes place.
(e) Whether or not the requirements of
Rule 2(b) are satisfied, the following operations or processes
are considered to be insufficient to confer the status of
originating products :
(i) Operations to
ensure the preservation of products in good condition either for
transportation or storage (ventilation, spreading out, drying,
chilling, placing in salt, sulphur dioxide or other aqueous
solutions, removal of damaged parts, and like operations);
(ii) Simple operations
consisting of removal of dust, sifting or screening, sorting,
classifying, matching (including the making-up of sets of
articles), washing, painting, cutting up;
(iii) Changes of packaging and
breaking up and assembly of consignments;
(iv) Simple slicing, cutting or
repacking or placing in bottles, flasks, bags, boxes, fixing on
cards or boards, etc.
(v) The affixing of marks,
labels or other like distinguishing signs on products or their
packaging;
(vi) Simple mixing;
(vii) Simple assembly of parts of
products to constitute a complete product;
(viii) Slaughter of animals;
(ix) Peeling, unflaking, grain
removing and removal of bones; and
(x) A combination of two or
more operations specified above.
RULE 5 : Cumulative rules of origin
Products which comply with origin requirements provided for
in Rule 2 and which are used by a Participating State as input
for a finished product eligible for preferential treatment by
another Participating State shall be considered as a product
originating in the territory of the Participating State where
working or processing of the finished product has taken place
provided that the aggregate content originating in the territory
of the Participating States is not less than 60 percent of its
f.o.b. value.
RULE 6 : Direct consignment
The following shall be considered as directly consigned
from the exporting Participating State to the importing
Participating State :
(a) if the products are transported
without passing through the territory of any non-Participating
State :
(b) the products whose transport involves
transit through one or more intermediate non- Participating
States with or without transshipment 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.
RULE 7 : 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.
RULE 8 : Certificate of origin
Products eligible for preferential concessions shall be
supported by a Certificate of Origin issued by an authority
designated by the government of the exporting Participating State
and notified to the other Participating States in accordance with
the attached sample Certificate of Origin and notes for the
completion thereof.
RULE 9 : Prohibition and co-operation
(a) Any Participating State may prohibit
importation of products containing any inputs originating from
States with which it does not have economic and commercial
relations.
(b) Participating States will do their
best to co-operate in order to specify origin of inputs in the
Certificate of Origin.
RULE 10 : Review
These Rules may be reviewed as and when necessary upon
request of one-third of the Participating States and may be open
to such modifications as may be agreed upon.
RULE 11 : Special criteria percentage
Products originating in least developed Participating
States can be allowed a favorable 10 percentage points applied to
the percentages established in Rules 4 and 5. Thus, for Rule 4,
the percentage would not exceed 65 per cent, and for Rule 5, the
percentage would not be less than 50 per cent.
ANNEXURE-A
SAMPLE CERTIFICATE OF ORIGIN
Asia-Pacific Trade Agreement
(Combined declaration and certificate)
1. Goods consigned from :
(Exporter's business name, address, country)
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Reference No.
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Issued in ...............
(Country)
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2. Goods consigned to :
(Consignee's name, address, country)
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3. For Official use
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4. Means of transport and route :
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5. Tariff item number :
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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 criterion (see notes overleaf)
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9. Gross weight or other quantity :
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10. Number and date of invoices :
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11. Declaration by the exporter :
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12. Certificate
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The undersigned hereby declares that the above details
and statements are correct : that all the goods were produced
in
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It is hereby certified on the basis of control carried
out, that the declaration by the exporter is correct.
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................................
(Country)
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and that they comply with the origin requirements
specified for these goods in the Asia-Pacific Trade Agreement
for goods export to
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................................
Place and date, signature and Stamp of Certifying
Authority
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................................
(Importing Country)
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................................
Place and date, signature of authorised Signatory
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Notes for completing Certificate of Origin
I. General Conditions :
To qualify for preference, products must :
(a) fall within a description of products
eligible for preference in the list of concessions of an
Asia-Pacific Trade Agreement country of destination;
(b) comply with Asia-Pacific Trade
Agreement rules of origin. Each article in a consignment must
qualify separately in its own right; and
(c) comply with the consignment
conditions specified by the Asia-Pacific Trade Agreement rules of
origin. In general, products must be consigned directly within
the meaning of Rule 6 hereof from the country of exportation to
the country of destination.
II. Entries to be made in the boxes :
Box 1 Goods Consigned from
Type the name, address and country of the exporter. The
name must be the same as the exporter described in the invoice.
Box 2 Goods Consigned to
Type the name, address and country of the importer. The
name must be the same as the importer described in the invoice.
For third party trade, the words "To Order" may be typed.
Box 3 For Official Use
Reserved for use by certifying authority.
Box 4 Means of Transport and Route
State in detail the means of transport and route for the
products exported. If the L/C terms etc. do not require such
details, type "By Air" or "By Sea". If the products are
transported through a third country this can be indicated as
follows :
e.g. "By Air"
"Laos to India via Bangkok"
Box 5 Tariff Item Number
Type the 4-digit HS heading of the individual items.
Box 6 Marks and Numbers of Packages
Type the marks and numbers of the packages covered by the
Certificate. This information should be identical to the marks
and numbers on the packages.
Box 7 Number and Kind of Packages; Description
of Goods
Type clearly the description of the products exported. This
should be identical to the description of the products contained
in the invoice. An accurate description will help the Customs
Authority of the country of destination to clear the products
quickly.
Box 8 Origin Criterion
Preference products must be wholly produced or obtained in
the exporting Participating State in accordance with Rule 3 of
the Asia-Pacific Trade Agreement Rules of Origin, or where not
wholly produced or obtained in the exporting Participating State
must be eligible under Rule 4 or Rule 5.
(a) 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 :
1. Enter letter "B" in Box 8, for
products, which meet the origin criteria according to Rule 4.
Entry of letter "B" would be followed by the sum of the value of
materials, parts or produce originating from non-Participating
States, or undetermined origin used, expressed as a percentage of
the f.o.b. value of the products; (example "B" 50 per cent);
2. Enter letter "C" in Box 8 for
products, which meet the origin criteria according to Rule 5.
Entry of letter "C" would be followed by the sum of the aggregate
content originating in the territory of the exporting
Participating State expressed as a percentage of the f.o.b. value
of the exported product; (example "C" 60 per cent);
3. Enter letter "D" in
Box 8 for products, which meet the special origin criteria
according to Rule 11.
Box 9 Gross Weight or Other Quantity
Type the gross weight or other quantity (such as pieces,
kg) of the products covered by the Certificate.
Box 10 Number and Date of Invoices
State number and date of the invoice in question. The date
of the invoice attached to the Application should not be later
than the date of approval on the Certificate.
Box 11 Declaration by the Exporter
The term "Exporter" refers to the shipper who can either be
a trader or a manufacturer. Type the name of the producing
country and the importing country and the place and date when the
declaration is made. This box must be signed by the Company's
authorized signatory.
Box 12 Certification
The certifying authority will certify in this Box.
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