Amendment in Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020. Notification No. 14/2025-Customs (N.T.)18th March 2025

[YAGAY andSUN]

Amendment in Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020.

The Notification No. 14/2025-Customs (N.T.) issued by the Government of India under the Ministry of Finance on 18th March 2025 brings about an amendment to the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020. Here are the key points of the amendment:

1. Title of the Rules: The rules are now referred to as the "Customs (Administration of Rules of Origin under Trade Agreements) Amendment Rules, 2025."
2. Effective Date: These amendments come into force on the date of their publication in the Official Gazette.
3. Substitution of "Certificate" with "Proof":
   • In various parts of the Customs Rules of Origin, the word "certificate" has been substituted with "proof". This change applies to:
     • Rule 2 (sub-rule 1, clause (f))
     • Rule 3 (sub-rule 1, clauses (c) and (d), and sub-clauses (i), (ii), and (v) of clause (d); sub-rule 2)
     • Rule 6 (sub-rule 1, clauses (a) and (b))
4. Amendment to Form I:
   • In Form I, Section III, Part B, paragraph 2, at serial number g, the letters "CoO" (Certificate of Origin) are substituted with the words "proof of origin."

This amendment is intended to clarify and streamline the language used in the Customs Rules of Origin under Trade Agreements, especially concerning the terminology related to certificates and proof of origin.

Let’s break down the amendment and its implications more thoroughly:

1. Substitution of "Certificate" with "Proof"

• Reason for Change: The use of the word "certificate" in the context of customs and trade agreements could be confusing, as it might imply a formal, official document that needs to be provided in a specific format. On the other hand, "proof" is a broader term that allows for flexibility in how origin status is demonstrated, accommodating a wider range of documentary evidence.
  • Certificate of Origin (CoO) typically refers to an official document issued by a competent authority certifying the country of origin of goods. However, in many cases, this document can be replaced by alternative forms of evidence such as invoices, declarations, or statements of origin provided by the exporter or producer.
  • Proof of Origin is a term that can cover a wider range of acceptable documentation, including certificates, but it also allows for things like self-declarations or other forms of evidence that can substantiate the origin claim. This shift can potentially reduce the administrative burden on exporters and importers and give them more flexibility in what constitutes proof.

2. Rules Affected

The amendment affects several rules in the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020, specifically:

• Rule 2 (sub-rule 1, clause f):
  • This rule likely defines key terms, and changing “certificate” to "proof" ensures consistency throughout the regulations regarding origin claims.
• Rule 3 (sub-rule 1, clauses (c), (d), and sub-clauses (i), (ii), and (v) of clause (d):
  • These clauses likely pertain to the documentary requirements for proving the origin of goods under specific trade agreements. The substitution of "certificate" with "proof" means that traders may no longer be required to submit a formal "Certificate of Origin" if other forms of proof are acceptable.
• Rule 3 (sub-rule 2):
  • This change is likely related to the general documentation process for proving the origin of goods, making the process less rigid and more adaptable to different types of evidence.
• Rule 6 (sub-rule 1, clauses (a) and (b)):
  • Similar to the above rules, this substitution across Rule 6 is meant to ensure that the reference to "proof" is consistent when determining the necessary documentation for goods' origin.

3. Change in Form I

• Form I, Section III, Part B, Paragraph 2, Serial Number g:
  • In Form I, which is used for declaring the origin of goods in trade, the term "CoO" (Certificate of Origin) is replaced with "proof of origin."
  • This could mean that traders no longer need to submit a formal "Certificate of Origin" but can submit other acceptable forms of proof, such as a self-declaration or an invoice statement confirming the origin of goods.

Practical Implications

• Flexibility for Exporters and Importers: The amendment introduces flexibility in the documentation required for proving the origin of goods under various trade agreements. This could streamline the process and reduce paperwork, which would be beneficial to exporters who previously needed to obtain an official Certificate of Origin. They can now rely on other acceptable proof methods.
• Administrative Efficiency: By substituting "certificate" with "proof," the government likely aims to reduce bureaucracy and facilitate smoother trade processes. For example, in cases where exporters produce goods in multiple countries or work with suppliers across borders, the origin proof may be easier to verify or establish without the need for a formal certificate.
• Consistency with International Practices: International trade agreements (such as those governed by the WTO or specific Free Trade Agreements) increasingly allow for self-declarations or simplified proofs of origin. The amendment aligns Indian customs rules with these practices, which may help ease trade for businesses that export to countries with similar origin proof requirements.

Key Benefits

• Ease of Trade: For businesses, this shift should make it easier to comply with origin documentation requirements, potentially reducing delays at customs and enhancing the efficiency of the supply chain.
• Adaptability: The change makes the customs rules more adaptable to different forms of evidence (such as invoices or supplier declarations), which is helpful when formal Certificates of Origin are not available or would be difficult to obtain.
• Cost Reduction: Traders may save on fees related to obtaining a formal Certificate of Origin. They can instead rely on other forms of evidence that might be less costly and more readily available.

Potential Concerns

• Lack of Standardization: If the definition of "proof of origin" is too broad, it could lead to confusion or inconsistency, especially if different customs officers interpret "proof" differently. Clear guidelines would be necessary to ensure that there is no ambiguity in the forms of evidence accepted.
• Verification Challenges: While "proof" offers more flexibility, it may also create more challenges for customs authorities in verifying the authenticity of origin claims. This could necessitate more stringent procedures or audits to ensure that goods meet the necessary origin requirements for preferential tariff treatment.