CBIC Clarifies Implementation of Origin Procedures under India – Australia ETCA [Read Instruction]

Regarding the implementation of origin procedures under the India-Australia Economic Cooperation and Trade Agreement (“ECTA”), the Central Board of Indirect Taxes and Customs (CBIC) issued Instruction No. 10/2023-Customs on March 10, 2023..

The Board has also been constantly reminded of a few nuances regarding the implementation of ROO and OCP under the India-Australia ECTA. The following are clarified by the CBIC in the instruction:

1. Electronic Certificates of Origin are recognised by the India-Australia ECTA. As a result, an e-COO issued electronically by Australian issuing bodies is acceptable for use in claiming preferential treatment under the India-Australia ECTA, provided that it was issued in accordance with the guidelines, bears the seal and signatures of the appropriate issuing body or authority, and complies with all other requirements listed in Notification No. 112/2022-Customs (N.T.) dated December 22, 2022.

In this regard:

1. The previously circulated sample seals and signatures will still be utilised to confirm the legitimacy of the e-COO. The FTA Cell (at the Directorate of International Customs) should be contacted in cases where verification must be started with the exporting country’s issuing authority when there is a question so that the verification procedure can be started solely through established communication channels.

• The importer/customs broker must compulsorily upload the e-COO on e-Sanchit in order to receive the preferential treatment, and the details of the e-COO, such as the specific reference number and date, the originating criteria, etc., must be carefully entered when submitting the bill of entry.

• A printed copy of the e-COO must be given to the customs official for defacement purposes, who will then compare the unique reference number and other information contained in the bill of entry with the printed copy of the e-COO. This will be used instead of damaging a certificate of origin’s original hard copy. In this regard, it may be recalled that a check to prevent the use of the same COO reference number in more than one bill of entry has already been introduced to the system.

2. Notification No. 112/2022-Customs (N.T.) dated 22nd December 2022 lists the requirements of a valid COO/e-COO under India-Australia ECTA and affixing of QR Code on the COO/e-COO is not a requirement under the same.

3. The India-Australia ECTA’s COO format does not include overleaf notes. However, when notifying the Rules of Origin, these were added to Notification No. 112/2022-Customs (N.T.) dated December 22, 2022 from the Indian side following careful consultation with the Australia side as a guide for respective issuing authorities/bodies as well as traders.

The Overleaf Notes serve as instructions on how to complete specific entries in the COO format; however, they do not constitute a component of the COO format in and of itself. Hence, the absence of Overleaf Notes on the COOs that were sent to Australia might not be a reason to start the verification process or refuse to grant preferential treatment.

4. The distance between India and Australia, potential weather issues, logistical conveniences, etc., exporters may not always be aware of the port of destination. As a result, Australian issuers populate the Port of Destination field with “any ports in India” to prevent COO from being issued again.

The issuing authorities in India also adhere to a similar procedure when necessary. Because of this, the Issuing Bodies of Australia may not initiate verification or deny preferred benefit if “any ports in India” is entered in the Port of Destination field of the COO as long as the details on the COO and the transport documents match.

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