SCHEDULE - Rules of Origin of Goods - Customs Tariff (Determination of Origin of the United Arab Republic and Yugoslavia) Rules, 1976

THE SCHEDULE [See Rules 3(b) and 5] Rules of Origin of Goods 1. For purposes of Rule 2, the cost of production ("factory or works cost") to the manufacturer at the factory or works shall include also the cost of containers and other forms of interior packing ordinarily sold with the article when it is sold in retail or wholesale and the cost of exterior packing but shall not include any other taxes, charges or expenses incurred subsequent to its manufacture. 2. An article imported into India from a Participating State shall be eligible to special tariff concession subject to the following : (a) in the case of articles specified in Schedule A to these rules, that they have been wholly produced or grown within the area of the exporting Participating State; and (b) in the case of all other articles : (i) that they have been wholly manufactured within the territory of the exporting Participating State, or (ii) that they have been partially manufactured and the final process of manufacture has been performed within such territory : Provided that in both (i) and (ii) above the expenditure on material produced and labour performed within the territory of the exporting Participating State in the manufacture of the article is not less than fifty per cent of the factory or works cost of the article in its finished state. Explanation . — "Expenditure on material" means the cost to the manufacturer of the material at the factory or works, including containers. 3. Any one or more of the following operations or processes shall not by themselves, constitute the final process of manufacture : (a) Packing (e) Splitting into the lots (b) Mixing. (f) Sorting and grading. (c) Bottling (g) Marking (d) Labelling. (h) Putting up into sets. 4. In determining the place of production or consignment of marine products taken from the sea or goods produced therefrom at sea, such products shall be regarded as having been consigned from the territory of a Participating State if they were taken or produced in a vessel chartered by, or belonging to, a Participating State and have been brought direct to the exporting Participating State. 5. When determining the origin of goods, "expenditure on material" incurred in the exporting Participating State shall include inter alia expenses incurred in respect of energy, fuel, plant, machinery or tools in the manufacture or production of goods within the exporting Participating State and materials used in the maintenance of such plant and machinery, and tools. 6. (1) Each unit of article in a consignment shall be considered separately. (2) For purposes of clause (1) of this rule — (a) tools, parts and accessories which are imported with an article, and the price of which is included in that of the article or for which no separate charge is made, shall be considered as forming a whole with the article, provided that they constitute the standard equipment customarily included in the sale of articles of that kind; (b) in cases not within sub-clause (a), goods shall be treated as a single unit if they are so treated for purposes of assessing customs duties. (3) An unassembled or disassembled article which is imported in more than one consignment because it is not feasible for transport or production reasons to import it in a single consignment shall, if the importer so requests, be treated as one article if they are so treated for purposes of assessing customs duty. 7. (1) A claim that goods shall be accepted as eligible to special tariff concession in customs duties shall be supported by an appropriate certificate of origin given by a Governmental authority or an authorised body nominated by the exporting Participating State and notified to the Government of India. (2) The forms of certification shall be as prescribed in Schedule B to these rules. 8. (1) When it is considered necessary that an enquiry should be made pertaining to any consignment or certificate of origin, the Government of India may make a request to the competent authority of the exporting Participating State. Upon receipt of a request in this behalf the competent authority shall, after verification of the evidence, furnish information to the Government of India. Information obtained in this respect shall be treated as confidential. (2) Certificates of an authorised body may not be accepted in case it is shown to have repeatedly issued certificates not in accordance with the provisions of these Rules. Such action shall not, however, be taken without adequate prior notification to the exporting Participating States of the grounds of dissatisfaction. 9. These rules shall be reviewed annually from the commencement of their operation and be open to such modification as may be agreed upon by the Government of India and Participating States.