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TMI BlogMain components of preferential Rules of Origin in existing Trade AgreementsX X X X Extracts X X X X X X X X Extracts X X X X ..... y vary. Customs officers are, therefore, advised to refer to the respective Rules of Origin also, as notified in terms of sub-section (1) of section 5 of the Customs Tariff Act, 1975. 6.2 (i) Originating Criteria A good is originating if it is wholly obtained in the partnering country or deemed to be originating if it undergoes substantial transformation. (a) Goods Wholly Obtained The origin category of Goods Wholly Obtained covers the good which is entirely obtained, extracted, or produced in a single country, without incorporating any non-originating input material. (b) Goods that are produced using non-originating materials, i.e. not Wholly Obtained Goods under this category are required to undergo substantial tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es Depending upon the Trade Agreement, either a single set of rule applies to all/most of the goods that are produced using non-originating materials and thus termed as General Rules or specific rules for the goods based on HS classification are framed and termed as Product Specific Rule . Note: There are Trade Agreements which provide option to an exporter to choose general or product specific rule to claim origin. In few cases however, general rule cannot be applied when a product specific rule is provided for. Customs officer should therefore read the Non-Tariff Customs notification to check for same. (ii) Additional Provisions which influence Rules of Origin The originating criteria under trade agreements are additionall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding upon the mutually agreed Rules of Origin between the contracting parties. (d) Direct Consignment Under normal conditions all trade agreements allow preferential tariff treatment to only those goods which are transported directly between Parties. However, in case a good is not transported directly, it should meet the conditions and be supported by documents, as laid out under Rules of Origin of the said Trade Agreement. (e) Minimal Operations Rule This rule lists processes or operations considered as insufficient to confer originating status, even if it meets prescribed value addition or/and tariff classification change criterion. (f) Absorption/Roll-up: The absorption or roll-up principle allows intermediate products ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... original document. (iv) Verification of Proof of Origin Rules of Origin for each trade agreement provides for mechanism for seeking details from exporting country, should a need be felt to supplement investigations done domestically to ascertain validity of origin of a good. The procedure and timelines for same are prescribed and vary from agreement to agreement. Rule 6 of CAROTAR, 2020 provides for timeline for receiving information from Verification Authority and subsequent finalization of preferential tariff claim based on information received. [Notification No. 81/2020-Customs (N.T.) dated 21.08.2020] Note: It is important to clearly state reasons for verification request and quote the rule under which same is sought. CBIC h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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