Verification of origin in case of goods imported under Free/Preferential Trade Agreement - Regarding. - Customs - F. No. 2000/3/2010-IC-ICD

Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi dated 30-8-2010 Subject : Verification of origin in case of goods imported under Free/Preferential Trade Agreement - Regarding. I am directed to refer to the above subject and to state that a number of Free/Preferential Trade Agreements (FTA/PTA) are in operation at present under which goods can be imported at preferential rates of duty. Rules of Origin are notified under such Agreements which require the importer to, inter alia, make a claim at the time of importation, in the form of a prescribed Certificate of Origin (COO), for claiming the preferential rate of duty. The Rules of Origin also envisage verification of origin in case of reasonable doubt regarding the authenticity of the certificate or the accuracy of information regarding origin or even on random basis. Such requests for verification would have to be routed through the nodal points in the Ministry to the exporting country. 2. It is felt that the field formations should use the provisions for verification optimally for verifying the Certificates of Origin and the information contained therein. In view of the increasing number of FTAs and PTAs as well as the increasing volume of imports thereunder, verification is crucial, both as an enforcement measure and as a deterrent, to cause verification of origin in select cases. 3. Verification should be done on different grounds; (i) The Certificates of Origin should be verified for the presence of signatures and seals as per specimens already communicated, completeness of the certificate, legibility and accuracy. In case of any deficiency or doubt regarding the format of the certificate, these aspects should be taken up for verification. (ii) Verification could also be initiated in case of a reasonable doubt on the authenticity of the certificate or the accuracy of information regarding origin. Reasonable doubt could arise based inter alia, on information about whether a product is grown or produced in a particular country or whether there are facilities to provide required value addition for the product in the declared country of origin. (iii) The criteria for verification could be based on risk parameters such as the quantum of duty being foregone, frequency of import of goods from the same supplier, the nature of goods vis-a-vis the declared country of origin, nature of commodities that are prone to mis-declaration of origin, compliance record of the importer etc. (iv) Apart from the circumstances mentioned at paras above, verification could also be undertaken on completely random basis. 4. Risk Management Division (RMD) has been requested to suggest the risk criteria for selection and also develop an application in the EDI/RMS for selecting import consignments for post importation verification of the COO and inform Board. The System could select and prompt the assessing officer for taking up cases for verification. Since preferential concessions are given under specific notifications, such notifications could act as marker in these cases. 5. It is requested to provide your views on the matter and suggestions on possible risk criteria that could be adopted in this regard. 6. It is also requested to furnish the details of cases in your jurisdiction taken up for verification of origin under different FTA/PTAs, the source through which verification was conducted and the outcome thereof. 7. Early response is requested on paras 5 and 6 above. [F. No. 2000/3/2010-IC-ICD]