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TMI BlogGuidelines regarding implementation of section 28DA of the Customs Act, 1962 and CARO TAR, 2020 in respect of Rules of Origin under Trade Agreements (FTA/PTA/CECA/CEPA) and verification of Certificates of OriginX X X X Extracts X X X X X X X X Extracts X X X X ..... Attention of the Importers, Exporters, Customs Brokers and all-other stakeholders is invited to the above mentioned subject. Reference is drawn to Chapter VAA and section 28DA of the Customs Act, 1962, which has been inserted vide clause 11b of Finance Act, 2020, and to Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (hereafter referred to as the CAROTAR, 2020) issued vide Notification No. 8f/2020- Customs (N.T.) dated 21st August, 2020. 1.1 The aforementioned section and rules aim to supplement the operational certification procedures related to implementation of the Rules of Origin, as prescribed under the respective trade agreements (FTA/PTA/CECA/CEPA) and notified under' the customs notificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken on random basis as a measure of due diligence. For this purpose, factors such as the quantum of duty being foregone, the nature of goods vis-a-vis the country of origin, commodities that are prone to mis-declaration of country of origin, compliance record of the importer etc., may be given regard while selecting Certificates of Origin for random verification. 3. The Rules of Origin, by virtue of which a good attains origin of a country have evolved with subsequent reviews of trade agreements. Most trade agreements have moved from single general rule to specific rule for most of the tariff lines, with inclusion of vast array of processes which can confer origin. Section 28DA makes it incumbent upon an importer to possess sufficient ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r demonstrates that he has established adequate system of controls to exercise reasonable care as required under the Act. 4 Verification request should be forwarded to the Board based upon following standard operating procedures: (i) In case several certificates pertaining 'to identical item are under review or scrutiny, only representative certificates should be forwarded to the Board to cause verification along with list of all Coos to which the field formation aims to apply the result of such verification. Representative Coos may be selected in such a manner to ensure that they cover each of the exporters, importers and the prescribed originating criteria. For instance, if there are several Coos issued to a single exporter, but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6(1 )(a) or of CROTAR 2020; and within 10 days from the date of receipt of requisite information and documents from the importer in case the request is being considered in terms of rule 6(1 )(b). (v) Mechanism should be devised to monitor the requests which have been forwarded for verification, with special focus on cases where the timeline for response from the Verification Authorities is about to expire. 5. For ascertaining correctness of a claim of preferential irate of duty under a trade agreement, information may be sought from the importer during the course of customs clearance or thereafter (e.g. during subsequent investigations or post-clearance audit). Likewise, a verification request may be made to an exporting country durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of rule 6(5) of CARO TAR, 2020, Board has designated Director (ICD), CBIC as the nodal point for taking up verification of origin with partner countries. Hence all requests for verification should be addressed to: Director (International Customs Division), Central Board of Indirect Taxes Customs, Department of Revenue, Ministry of Finance, Room No. 49, North Block, New Delhi -110001. 011-2309 3380 (off); 011-2309 3760 (fax.) Email: [email protected] 7.1 Where the information requested in terms of rule 6 is received, the proper officer should within the prescribed timelines either restore preferential claim or issue notice for denying the claim in terms of section 28DA, read with section 28 of the Act where required, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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