Home Acts & Rules Customs Origin of Goods - Rules Customs Tariff (Determination of Origin of Goods under the Comprehensive Economic Cooperation Agreement between the Republic of India and Republic of Singapore) Rules, 2005 This
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Rule 5 - Not Wholly Obtained or Produced - Customs Tariff (Determination of Origin of Goods under the Comprehensive Economic Cooperation Agreement between the Republic of India and Republic of Singapore) Rules, 2005Extract 5. Not Wholly Obtained or Produced. - Within the meaning of paragraph (b) of Rule 3 and subject to the provisions of Rule 7, 10 and that the final process of manufacturing is performed within the territory of the exporting Party, products would be considered as originating if : (a) (i) the total value of the materials, parts or produce originating from countries other than the Parties or of undetermined origin used in the manufacture of the product does not exceed 1 [ sixty-five per cent ] of the FOB value of the product so produced or obtained; and, (ii) the product so produced or obtained is classified in a heading, at the 2 [ six-digit ] level, of the Harmonised System different from those in which all the non-originating materials used in its manufacture are classified; or (b) the product satisfies the Product Specific Rules as specified in Annex. B. 2. For the purposes of calculating the local value added content, either of the following methods can be applied: (a) Direct Method Value of Originating materials + Direct Labour Cost + Direct Overhead Cost + Profit x100% 40% FOB Price (b) Indirect Method Value of Non-originating materials x 100% 60% FOB Price 3. For the purpose of paragraph 2, if the material does not satisfy the requirements of paragraph 1, the non-qualifying value of the materials shall be that proportion which cannot be attributed to one or both of the Parties, provided that the requirements of Rule 7 at each stage of value accumulation are satisfied. ******** Notes 1. Substituted vide Notification No. 79/2018 - Customs (N.T.) dated 14-09-2018 before it was read 60% . 2. Substituted vide Notification No. 79/2018 - Customs (N.T.) dated 14-09-2018 before it was read four digit
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