Inclusion of details / clarification on the Certification of Origin of Goods for European Union Generalised System of Preferences (EU-GSP) - as notified vide Public Notice No.51 dated 30.12.2016 - DGFT - Trade Notice No. 03

No.01/93/180/56/AM-13/PC-2 (B) Vol. II Government of India Ministry of Commerce Industry Directorate General of Foreign Trade Udyog Bhawan, New Delhi Dated 17th April, 2017 Trade Notice No. 03 To 1 . All IEC holders/applicants 2. All EPCs/All Chambers of Trade and Industries 3. FIEO/ASSOCHAM/CII 4. All RAs of DGFT Subject: Inclusion of details / clarification on the Certification of Origin of Goods for European Union Generalised System of Preferences (EU-GSP) - as notified vide Public Notice No.51 dated 30.12.2016 It is to bring to notice that the Registered Exporter System (REX) under the EU GSP was introduced in India vide Public Notice No. 51 dated 30.12.2016. During the period of its operation, request for clarifications have been received from various quarters. Accordingly, the following clarifications along with the updated list of Local Users for registration are notified (Annex-II) and other concerned agencies/ authorities: Sl No. Query Clarification (i) What are the requisite documents to be submitted to the Local User along with the application for registration under REX system? The basic set of documents for an application for REX No are copies of i) IEC (Importer Exporter Code) ; and ii) Importer Exporter Profile The exporters should ensure the contact details in the IEC match with those in their application for registration. Else, the applicants should get their IECs updated with the latest details before applying for registration under REX. The Local Users for registration could prescribe additional documents, on a need basis but care must taken that the process is trade facilitatory. Further, Local Users for registration will also verify the DEL status of the IEC holder, and in case the firm is under DEL, application will not be accepted. (ii) Who should sign the application for registration The application must be signed by an authorised signatory or in exceptional cases by a power of attorney. A digitally signed application can also be accepted by the Local Users for registration. (iii) What is TIN? For India, the TIN number consists of the country code IN followed by the 10 digit IEC number (iv) What is the Composition of the REX Number A REX number is allotted to exporters by Local Users after completion of registration. For India, the format of the 20 digit REX number is as under: 1 2 3 4 5 6 7 to 15 16 17 18 19 20 I N R E X IEC number Alphabets assigned to Local Admin Number of the local user for REG IN denotes India Denotes REX number 10 digit IEC (Importer Exporter Code) number of exporter For eg: EC for EIC; DG for DGFT Ranges from 001 to 999 (v) What happens in case a REX number is wrongly generated? In case a REX number is wrongly generated, the Local Users for REG would need to revoke it and then create a new REX number. Revocation can only be done on the next day of creation of the REX No. and day after on the same IEC; a new REX registration can be done. However, for each revocation Local User for REG will seek confirmation from his Local Administrator for REG. (vi) Can a revocation be annulled? Yes, but for annulment of revocation, the prior approval from the Department of Commerce (which is the Local Administrator for Administrative Cooperation or ADC) is required. (vii) Is REX registration required for export consignments below 6000 ? REX number is required as long as the value of consignment is above 6000. However, multiple consignments in a single invoice should be considered as a single consignment and if the value of the Consignment is more than 6000, REX number of the exporter is required to be reflected on the statement on Origin. (viii) What is a Statement on Origin? A Statement on Origin is statement of a registered exporter verifying the origin criteria for exports under the EU GSP. The format has been detailed in Annexure ID of the Public Notice No. 51 dated 30.12.2016 and is available at http://dgft.gov.in/Exim/2000/PN/PN16/PN5116.pdf . it shall be made out on a Commercial document such as commercial invoice, packing list and delivery notice. It cannot be made on a transport document. (ix) When is the Form A certificate to be issued? The Form A certificate of origin can be issued during the transition period of 1 year (1.1.2017 to 31.12.2017) provided the exporter has not registered and obtained the REX number. For consignments below 6000, no Form A - or REX number is required. For exports of 6000 and above, Indian exporter can choose to issue / submit Form- A till 31.12.2017 or export their consignments with REX number (after registration under REX) and self certified Statement on Origin. If any EU buyer is insisting on Form-A, the above position may be clarified to them. In case the importer is not satisfied, matter may be brought to the knowledge of the Local Administrator for ADC ( dl [email protected]; usrmtr-doc @)nic.in;[email protected]) . (x) What is the retention period of the documents by the Exporter and local users? The documents have to be maintained by the exporter for a complete period of 3 calendar years starting from the end of year when the exports have occurred. (xi) What is the frequency in which Exporters have to report/ submit their export data to the Local Users Exporters are required to furnish fortnightly the commercial document on which the statement on origin is made to the Local User for REG through e-mail/ physical copy at local users email ID Local Users must transmit the data of trade under EU-GSP scheme as fortnighty to their Head Office/ Local Admin 2. Attention of exporters and local users is also drawn to the following EU regulations that govern the EU GSP:- (a). EU Regulation 2446/2015 (i) Annex 22-03: rules of origin (ii) Annex 22-04: materials excluded from regional cumulation (iii) Annex 22-05: working excluded from cumulation (b). EU regulation 2447/2015 (i) Article 108: control of origin (ii) Annex 22-06: application for registration (iii) Annex 22-07: Statement on origin (iv) Annex 22-08: Form A certificate of origin (v) Annex 22-15: Suppliers Declaration (vi) Annex 22-16: Long Term Suppliers Declaration 3. Attention of exporters is also drawn to the wholly originating criteria under EU-GSP wherein the following are required to be maintained at exporter s end, for verification: (i) Suppliers Declaration: Annex 22-15 of Regulation no. 2447/2015 (ii) Long time Supplier* s Declaration: Annex 22-16 of Regulation no. 2447/2015 (iii)The exporter under EU-GSP must also ensure that his suppliers are aware of the Rules of Origin under EU-GSP and that the supplier knows the upstream chain *Long term SD must be at least for 2 years 4. List of important URLs relating to REX is also annexed as at Annexure-I. (S.P. Roy) Joint Director General of Foreign Trade Telefax: 23062240 E-mail: [email protected] Annexure -1