The Central Board of Indirect Taxes and Customs (CBIC), on Thursday has notified the Customs Tariff (Determination of Origin of Goods under the India-Australia Economic Cooperation and Trade Agreement) Rules, 2022.
The rules are applicable to the goods that do not have originating status under clause (a) of rule 3 and are not covered under Annexure-B, a good shall be considered originating if all non-originating materials have undergone at least a change in tariff sub-heading (CTSH) level of the Harmonized System, and the QVC of the good is not less than thirty-five per cent. of the FOB value as per build-up formula or forty-five per cent. of the FOB value calculated as per build-down formula under rule 7, provided that the final production process of the manufacture of the good is performed within the territory of the exporting Party.
As per the rules, packaging materials and containers in which a good is packaged for retail sale, if classified with the good, shall be disregarded in determining whether the non-originating materials used in the production of the good have satisfied the applicable process or change in tariff classification requirement set out in Annexure- B, or whether the good is wholly obtained or produced.
The Certificate of Origin shall be issued by an issuing body or authority, as appropriate, of an exporting Party, upon an application by an exporter, producer, or their authorised representative.
The Certificate of Origin shall be forwarded by the exporter or producer to the importer. The customs administration may require the original copy.
The rules further imposes penalty for non-compliance of goods with Rules of Origin. If the verification under rule 26 establishes non-compliance of the goods with the rules of origin, duties shall be levied in accordance with the laws and regulations of the importing Party.
“Each Party shall also adopt or maintain measures that provide for the imposition of civil, administrative, and, where appropriate, criminal sanctions for violations of its customs laws and regulations, including those governing rules of origin, and the entitlement to preferential tariff treatment under these rules,” the rules said.
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