The Central Board of Indirect Taxes and Customs (CBIC) issued Third Party Invoicing in case of Preferential Certificates of Origin (CoO) issued in terms of Duty-Free Tariff Preference Scheme for Least Developed Countries (DFTP) for “wholly obtained goods”.
The Board has received representations from trade with regard to use of third party invoicing while claiming preferential tariff treatment in terms of DFTP in respect of “wholly obtained goods”.
The Board is of the view that if the value of goods does not have an impact on the originating status, the third-party commercial invoice may be accepted. The goods shall satisfy the applicable rules of origin and due diligence shall be done.
“The notification no 29/2015-cus (N.T), dated 10.03.2015 is silent upon provisions for third party invoicing, i.e. commercial invoice for goods originating in the LDC is issued in the third country and not by the consignor in the exporting country. In some other notified preferential rules of origin, where specific provision for third party invoicing is provided, the origin of the good is nonetheless based upon the value addition done in the country of origin alone, with Free on Board (FoB) in the country of origin being the base for arriving at the local value content,” the CBIC in the circular said.Subscribe Taxscan AdFree to view the Judgment