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Thailand — Interim Rules of origin for preferential tariff concessions for trade between India and Thailand

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..... hese rules shall be superseded and replaced by the Rules of Origin to be negotiated and implemented by the Parties under Article 3(6)(ii) of the Agreement for FTA in goods. Definitions. Rule 2. For the purpose of the interim rules of origin : " A Party " means the individual parties to the Agreement, that is either the Republic of India or the Kingdom of Thailand; "CIF value" means the price paid to the exporter for the product when it arrives at the port of importation. The exporter must pay the costs, freight, and insurance necessary to deliver the product to the named port of destination. The valuation shall be made in accordance with the Agreement on the implementation of Article VII of GATT 1994. "FOB value" means the free-on-board price paid to the exporter for the product when it leaves the named port of shipment. Thereafter, the importer will assume the costs including the necessary expenses for the shipment. The valuation shall be made in accordance with the Agreement on the implementation of Article VII of GATT 1994. " Harmonized system " means the nomenclature of the Harmonized Commodity Description and Coding System defined in the International Convent .....

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..... facturing, producing, processing or assembling etc.; " Product Specific Rules " means the rules that specify that the non-originating materials have undergone a change in tariff classification or a specific manufacturing or processing operation, or satisfy an ad valorem criterion or a combination of any of these criteria; " Non-originating material " means any material whose country of origin is other than the Parties (imported non-originating) and any material whose origin cannot be determined (undetermined origin); The " territory of India " means the territory of the Republic of India including its territorial waters and the air space above it, and the other maritime zones including the Exclusive Economic Zone and Continental Shelf over which Republic of India has sovereignty, sovereign rights or exclusive jurisdiction in accordance with its laws in force, the 1982 United Nations Convention on the law of the sea and international law; The " territory of Thailand " means the territory of the Kingdom of Thailand including its territorial waters and the air space above its territorial waters and the air space above it, and the other maritime zones including the Exclusive .....

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..... , or for recycling purposes; and (j) Products obtained or produced in a Party solely from products referred to in paragraphs (a) to (i) above. Rule 6. Not-wholly produced or obtained. (a) For the purposes of rule 4(b), the following general criteria should be applied, provided that the final process of the manufacture is performed within the territory of the exporting party and subject to rule 8 : (i) local value added content criterion, (ii) a change in tariff classification criterion between the export product and all non-originating materials used in its production. (b) Products specified in Annexure-A which fulfil one or a combination of the above criteria shall be considered as originating from the exporting Party provided that the final process of the manufacture is performed within the territory of the exporting Party and subject to Rule 8. (c) For the products not specified in Annexure-A as per Rule 6(b), the following criteria shall be applied in determining the origin of not-wholly produced or obtained products provided that the final process of the manufacture is performed within the territory of the exporting Party and subject to Rule 8 : (i) local .....

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..... , painting, cutting; (c) Changes of packing and breaking up and assembly of consignments; (d) Simple slicing, and repacking or placing in bottles, flasks, bags, boxes, fixing on cards or boards, etc.; (e) The affixing of marks, labels or other like distinguishing signs on products or their packaging; (f) Simple mixing of products, provided the characteristics of the obtained products are not essentially different from those of mixed products; (g) Simple assembly of parts of products to constitute a complete product; (h) Disassembly; (i) Slaughter of animals; (j) Mere dilution with water or another substance that does not materially alter the characteristics of the goods; (k) Simple cleaning, including removal of oxide, oil, paint or other coverings; (l) Oil application; and (m) A combination of any of the two operations referred to in (a) to (l). Rule 9. Direct consignment. The following shall be considered to be directly consigned from the exporting Party to all custom points of the importing Party; (a) if the products are transported without passing through the territory of any country other than the Parties; (b) the products whose transport involve .....

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..... e parts and/or tools shall be taken into account as originating or non originating materials, as the case may be, in calculating the local value added content. Rule 12. Indirect materials. An indirect material shall be treated as an originating material without regard to where it is produced and its value shall be the cost registered in the accounting records of the producer of the export product. Rule 13. Identical and Interchangeable materials. For the purposes of determining origin of product utilizing identical and interchangeable originating and non-originating materials, mixed or physically combined, the origin of such materials can be determined by generally accepted accounting principles of stock control applicable in the exporting party. Rule 14. Certification of Origin. A claim that products shall be accepted as eligible for preferential concessions in the importing Party shall be supported by a Certificate of Origin issued by a Government authority designated by the exporting Party and notified to the other Party to the Agreement in accordance with the Operational Certification Procedures, as set out in Annexure- B. Rule 15. Review and modification. T .....

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..... Change at 4-digit H.S. level (Change to sub-heading 730792 from any other headings), provided that there is a local Value Added Content not less than 20% (In Annexure A to the Product Specific Rule the above item has been placed) 8. 841381 - - Pumps Change at 6-digit H.S. Level (Change to sub-heading 841381 from any other sub-heading), provided that there is a Local Value Added Content not less than 40% 8414 Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters 9. 841451 - - Table, floor, wall, window, ceiling or roof fans, with a self-contained electric motor of an output not exceeding 125 W Change at 6-digit H.S. level (Change to sub-heading 841451 from any other sub-heading), provided that there is a Local Value Added Content not less than 40% 10. 841459 - - Other fans Change at 6-digit H.S. level (Change to sub-heading 841459 from any other sub-heading), provided that there is a Local Value Added Content not less than 40% .....

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..... tent not less than 40% 8481 Taps, cocks, valves and similar appliances for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves 16. 848180 - Other appliances Change at 6-digit H.S. level (Change to sub-heading 848180 from any other sub-heading), provided that there is a Local Value Added Content not less than 40% 8482 Ball or roller bearings 17. 848210 - Ball bearings Change at 6-digit H.S. level (Change to sub-heading 848210 from any other sub-heading), provided that there is a Local Value Added Content not less than 40% 8504 Electrical transformers, static converters (for example, rectifiers) and inductors 18. 850431 -- Other transformers having a power handling capacity not exceeding 1 kVA Change at 6-digit H.S. level (Change to sub-heading 850431 from any other sub-heading), provided that there is a Local Value Added Content not less than 40% 8512 Electrical lighting or signalling equipment .....

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..... ng 903281 Change at 6-digit H.S. level (Change to sub-heading 903289 from any other sub-heading), provided that there is a Local Value Added Content not less than 40% ANNEXURE-B OPERATIONAL CERTIFICATION PROCEDURES FOR INTERIM RULES OF ORIGIN FOR PRODUCTS ELIGIBLE FOR PREFERENTIAL TARIFF FOR THE EARLY HARVEST SCHEME UNDER THE FRAMEWORK AGREEMENT FOR ESTABLISHING FREE TRADE AREA BETWEEN THE KINGDOM OF THAILAND AND REPUBLIC OF INDIA For the purpose of implementing the Interim Rules of Origin for the Early Harvest Scheme under the Framework Agreement for Establishing Free Trade Area between Thailand and India (ITFTA) the following operational procedures on the issuance and verification of the Certificate of Origin (Form FTA) and the other related administrative matters, shall be followed : AUTHORITIES Rule 1 The Certificate of Origin shall be issued by the Government authorities of the exporting Party. Rule 2 (a) The Parties shall submit each other of the names and addresses of their respective Government authorities issuing the Certificate of Origin as well as provide specimen signatures and specimen of official seals used by the Governme .....

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..... igin shall three (3) carbon copies of the following colours : Original - Blue Duplicate - White Triplicate - White Quadruplicate - White (d) Each Certificate of Origin shall bear a printed distinctive number and a reference number separately given by each place or office of issuance. (e) The original copy, together with the triplicate, shall be forwarded by the exporter to the importer for submission of the original copy to the Customs Authority at the port or place of importation. The duplicate shall be retained by the issuing authority in the exporting Party. The triplicate shall be retained by the importer and the quadruplicate shall be retained by the exporter. Rule 8 To implement the provisions of Rule 5, Rule 6 and Rule 7 of the India-Thailand Interim Rules of Origin, the Certificate of Origin issued by the exporting Party shall indicate the relevant rules and applicable percentage of local value added content in Box 8. Rule 9 Neither erasures nor superimpositions shall be allowed on the Certificate of Origin. Any alteration shall be made by striking out the erroneous .....

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..... ted when failure to observe the time-limit results from force majeure or other valid causes beyond the control of the exporter; and (c) In all cases, the relevant Government authority in the importing party may accept such Certificate of Origin provided that the products have been imported before the expiration of the validity of the Certificate of Origin. Rule 14 The discovery of minor discrepancies between the statements made in the Certificate of Origin and those made in the documents submitted to the Customs Authority of the importing Party for the purpose of carrying out the formalities for importing the products shall not ipso facto invalidate the Certificate of Origin, if it does in fact correspond to the said products. Rule 15 (a) The importing Party may request a retroactive check at random and/or when it has reasonable doubt as to the authenticity of the document or as to the accuracy of the information regarding the true origin of the products in question or of certain parts thereof. (b) The request shall be accompanied with the Certificate of Origin concerned and shall specify the reasons and any additional information suggesting that the particular .....

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..... icate of Origin issued by the relevant Government authority of the exporting Party; (c) A copy of the original commercial invoice in respect of the product; and (d) Supporting documents in evidence that the requirements of Rule 9(b) of the India-Thailand Interim Rules of Origin are being complied with. Rule 19 (a) Products sent from an exporting Party for exhibition in another party and sold during or after the exhibition for importation into a party shall benefit from the India-Thailand preferential tariff treatment on the condition that the products meet the requirements of the India-Thailand Interim Rules of Origin provided it is shown to the satisfaction of the relevant Government authorities of the importing Party that : (i) An exporter has dispatched those products from the territory of the exporting Party to the Country where the exhibition is held and has exhibited them there, (ii) The exporter has sold the goods or transferred them to a consignee in the importing Party; and (iii) The products have been sold during the exhibition or immediately thereafter to the importing Party in the state in which they were sent for the exhibition. (b) For the purpose o .....

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..... weight and value (FOB) 10.Number and date of Invoice 11. Declaration by the exporter The undersigned hereby declares that the above details and statements are correct, that all the goods were produced in THAILAND . (Country) 12. Certification It is hereby certified, on the basis of control carried out, that the declaration by the exporter is correct. Place and date, signature and stamp of certifying authority and that they comply with the origin requirement specified for those goods in the Free Trade Agreement for goods exported to (Importing country) Place and date, signature of authorized signatory No. 000000 DUPLICATE 1. Goods consigned from (Exporter's business name, address, country) Reference No. FREE TRADE AGREEMENT CERTIFICATE OF ORIGIN (Combined declaration and certificate) FORM FTA Issued in ....... THAILAND.......... (Country) 2. Goods consigned to (Consignee's name, address, country) .....

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..... d to (Importing country) . Place and date, signature of authorized signatory No. 000000 QUADRUPLICATE 1. Goods consigned from (Exporter's business name, address, country) Reference No. FREE TRADE AGREEMENT CERTIFICATE OF ORIGIN (Combined declaration and certificate) FORM FTA Issued in ............THAILAND..........(Country) 2. Goods consigned to (Consignee's name, address, country) 3. Means of transport and route (as far as known) 4. For official use 5. Item Number 6. Marks and numbers of packages 7. Number and type of packages; description of goods (including quantity where appropriate and HS code of the importing country) 8. Origin criterion 9. Gross weight and value (FOB) 10.Number and date of Invoice 11. Declaration by the exporter The undersigned hereby declares that the above details and statements are correct, that all the goods were produced in THAILAND (Country) 12. Certification It is hereby certified, on the basis o .....

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..... ent Example 40% (ii) Change at 4-digit HS plus percentage of Local Value Added Content 4 digit + percentage of local value added content (iii) Change at 6-digit HS plus percentage of Local Value Added Content 6 digit + percentage of local value added content 3. Each article must qualify : It should be noted that all the products in a consignment must qualify separately in their own right. This is a particular relevance when similar articles of different sizes of spare parts are sent. 4. Description of products : The description of products must be sufficiently detailed to enable the products to be identified by the Customs Officer examining them. Name of manufacture, any trade mark shall also be specified. 5. The Harmonized System number shall be that of the importing Party. 6. The term "Exporter" in Box 11 may include the manufacture or the producer. 7. For official use : The customs Authority of the importing Party must bear the word in preferential or preferential treatment in Box 4. For multiple items declared in the same Form FTA India-Thailand, of preferential treatment is guaranteed to any of the items, this is also to b .....

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