At the end of August, the Indian government has issued the customs rules 2020 (Administration of rules of origin under trade agreements), which will take effect on September 21, 2020. These rules will apply to goods imported into India at preferential tariff rates under free trade and other trade agreements, and seek to curb abuse of rules of origin under free trade agreements by requiring importers to submit detailed information on imported goods when applying for preferential tariff rates.
This rule will restrict the import of paper, which is beneficial to the development of Indian paper industry. The new standard is formulated to check the entry and transportation of low-quality products and the dumping of goods by third countries through partner countries of free trade zone.
According to a paper trader in India, the “rules of origin” will prevent bad practices in the import of paper under the free trade agreement (FTA). Now, the paper of origin needs to be presented to the authorities for clarification by the customs. Once this rule is implemented, India’s domestic paper imports will be reduced.
“These new policies will help to examine the use of FTA channels by third countries (non FTA members) to export to India with preferential / zero import duties, as rules of origin are expected to be more strictly enforced than before. It is not only the paper industry, but it will also help all industries to reduce the abuse of free trade zone channels for preferential / duty-free exports to India. Only goods that meet the rules of origin and value-added standards produced in FTA member countries will be allowed to enter India with preferential / zero import duties. ” Said Mr. Rohit Pandit, Secretary General of IPMA.
Local media in India said the government was ready to fine tune the import tax structure and to conduct a rapid review of all “free trade agreements” (FTA). As Mehta, President of the Indian Paper Manufacturers Association, said some countries were taking advantage of the period before the new policy took effect to push their excess inventory to India at very low prices. We have urged the centre to raise the basic tariff on paper imports to 25% as soon as possible.
According to the new policy, when submitting entry documents, importers or their agents must declare in the documents that the imported products are eligible for the preferential tariff rate stipulated in the agreement, and produce the certificate of origin before they can claim the preferential tax rate according to the trade agreement. If the certificate of origin is incomplete or has any alteration not certified by the issuing authority, or if the certificate is presented after the validity period, the relevant officials can refuse the request of preferential tax rate without verification.
In addition, the importer must have all relevant information relating to the standards of the country of origin and submit it to the relevant officials upon request. If, during or after customs clearance, the signature or seal does not match the seal and signature sample received from the exporting country, the official may request the verification agency to verify the authenticity of the certificate of origin.
In his speech, Nirmala sitharaman, Minister of finance of India, said that the government would review the requirements of “rules of origin”, especially for some sensitive items, to ensure that the free trade agreement is in line with its own interests and policy requirements.
Post time: Sep-18-2020