Rule 12 - Accounting Segregation - Customs Tariff (Determination of Origin of Goods under the Comprehensive Economic Partnership Agreement between India and the United Arab Emirates) Rules, 2022

12. Accounting Segregation .- (1) The determination of whether fungible products or materials are originating products shall be made ordinarily by physical segregation of each product or material or in case of any difficulty, an inventory management method, such as averaging, last-in first-out, or first-in first-out recognised in the generally accepted accounting principles of the Party in which the production is performed, or otherwise accepted by the Party. in which the production is performed. (2) The accounting method shall continue to be used for those fungible products or materials throughout the fiscal year of the Party and shall be recorded, applied and maintained in accordance with the generally accepted accounting principles applicable in the Party in which the product is manufactured. The method chosen shall: (a) permit a clear distinction to be made between originating and non-originating materials including materials of undetermined origin acquired and/or kept in stock; and (b) guarantee over the relevant accounting period of twelve months that no more products receive originating status than would be the case if the materials had been physically segregated. (3) A producer using an inventory management system shall keep records of the operation of the system necessary for the competent authority of the Party concerned to verify compliance with the provisions of these rules. (4) The competent authority may require from its exporters that the application of the method for managing stocks under this rule will be subject to prior authorisation.