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TMI BlogClarification on certain aspects of origin procedures under free trade agreements (FTAs)X X X X Extracts X X X X X X X X Extracts X X X X ..... ew Delhi Dated the 21 st October, 2024 To, All Principal Chief Commissioners / Chief Commissioners of Customs / Customs (Preventive)/ Customs and Central Tax All Principal Commissioners / Commissioner of Customs / Customs (Preventive) All Principal Directors General / Directors General under CBIC Madam / Sir, Subject: Clarification on certain aspects of origin procedures under free trade agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is to note that third-party invoicing is a common business practice and a few trade agreements explicitly provide for it. For example, Article 22 of Operational Certification Procedures for the Rules of Origin for the AIFTA states that: The Customs Authority in the importing Party shall accept an AIFTA Certificate of Origin where the sales invoice is issued either by a company located in a third ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the trade agreement. When the requisite information is not provided by the importer or the information furnished is insufficient to assess origin criteria, the laid down process of verification gets triggered in terms of the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR in brief) read with Section 28DA of the Customs Act, for which a reference is to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . However, it is emphasised that if the concerned trade agreement does not allow for outright denial without causing a verification in accordance with provisions laid down in the subject agreement, the provision of the trade agreement shall prevail. CBIC vide its Instruction No. 19/2022-Customs dated 17.08.2022 has reiterated that in the event of conflict between the provisions of the trade agreem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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