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Customs tariff (determination of origin of goods under
the free trade agreement between The Democratic Socialistic
Republic of Sri Lanka and The Republic of India) Rules, 2000
Notification No. 19/2000-Cus. (N.T.), dated 1-3-2000
In exercise of the powers conferred by sub-section (1) of
section 5 of the Customs Tariff Act, 1975 (51 of 1975), the
Central Government hereby makes the following rules, namely :-
1. Short title and commencement. - (1) These
rules may be called the Customs Tariff (Determination of Origin
of Goods under the Free Trade Agreement between the Democratic
Socialistic Republic of Sri Lanka and the Republic of India)
Rules, 2000.
They shall come (2) into force on the date of their
publication in the Official Gazette.
2.Application.- These rules
shall apply to goods consigned from the territory of either of
the Contracting Parties.
3.Determination of Origin.-
No product shall be deemed to be the produce or manufacture of
either country unless the conditions specified in these rules are
complied with in relation to such products, to the satisfaction
of the appropriate Authority.
4.Claim at the time of
importation.- The importer of the product shall, at the time
of importation -
(a) make a claim that the products are the produce or
manufacture of the country from which they are imported and such
products are eligible for preferential treatment under the
India-Sri Lanka Free Trade Agreement, (hereinafter referred to as
the Agreement), and
(b) produce the evidence specified in these rules.
Explanation. - For the purposes of this
notification, "Preferential treatment" in relation to any product
means the exemption granted under the notification of the
Government of India in the Ministry of Finance (Department of
Revenue), No. 26/2000-Customs dated 1st March, 2000 and includes
preferential concessions.
5.Originating products.
- Products covered by the Agreement imported into the territory
of any signatory party to the Agreement (hereinafter referred to
as the Contracting Party) from another Contracting Party which
are consigned directly within the meaning of rule 9, shall be
eligible for Preferential Concessions if they conform to the
origin requirement under any one of the following
conditions :
products wholly produced or obtained in the territory of
the (a) exporting Contracting Party as defined in rule 6; or
products not wholly produced or (b) obtained in the
territory of the exporting Contracting Party, provided that the
said products are eligible under rule 7 or rule 8.
6.Wholly produced or
obtained.- Within the meaning of condition (a) of rule 5, the
following shall be considered as wholly produced or obtained in
the territory of the exporting Contracting Party, namely :-
| (a) |
raw or mineral products, including mineral fuels,
lubricants and related materials as well as mineral or
metal ores, extracted from its soil, its water or its sea
bed; |
| (b) |
vegetable products, including agricultural and forestry
products, harvested there; |
| (c) |
animals born and raised there; |
| (d) |
products obtained from animals referred to in clause
(c); |
| (e) |
products obtained by hunting or fishing conducted
there; |
| (f) |
products of sea fishing and other marine products from
the high seas by its vessels; |
| (g) |
products processed and/or made on board its factory
ships exclusively from products referred to in clause (f); |
| (h) |
used articles collected there, fit only for the
recovery of raw materials; |
| (i) |
waste and scrap resulting from manufacturing operations
conducted there; |
| (j) |
products extracted from the seabed or below seabed
which is situated outside its territorial waters, provided
that it has exclusive exploitation rights; |
| (k) |
goods produced there exclusively from the products
referred to in clauses (a) to (j). |
Explanation : For the purposes of this notification, -
"Vessels" shall refer to the fishing vessels engaged in (A)
commercial fishing, registered in the country of the Contracting
Party and operated by a citizen or citizens of the Contracting
Party or partnership, corporation or association, duly registered
in such country, at least sixty per cent of equity of which is
owned by a citizen or citizens and/or Government of such
Contracting Party or seventy five per cent by citizens and/or
Government of the Contracting Parties. However, the goods taken
from vessels. engaged in commercial fishing under Bilateral
Agreements which provide for chartering/leasing of such vessels
and/or sharing of catch between Contracting Party will also be
eligible for Preferential treatment. In respect of vessels or
factory ships operated by Government agencies, the requirements
of flying the flag of the Contracting Party does not apply.
"Factory Ship" means any vessel, as defined, used for (B)
processing and/or making onboard goods exclusively from those
products referred to in clause (f) of rule 6.
7.Not wholly produced
or obtained. -
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(a) |
Within the meaning of
condition (b) of rule 5, products
worked on or processed as a result of which the total value of the materials,
parts or produce originating from countries other than the Contracting Parties
or of undetermined origin used does not exceed sixty five per cent of the f.o.b.
value of the products produced or obtained and the final process of manufacture
is performed within the territory of the exporting Contracting Party shall be
eligible for Preferential treatment, subject to the provisions of clauses (b),
(c), (d) and (e) of this rule and rule 8.
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(b) |
Non-originating materials
shall be considered to be sufficiently worked or processed when the product obtained is classified in a
heading, at the four digit level, of the Harmonised Commodity Description and
Coding System different from those in which all the non-originating materials
used in its manufacture are classified.
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(c) |
In order to determine whether
a product originates in the
territory of a Contracting Party, it shall not be necessary to establish whether
the power and fuel, plant and equipment, and machines and tools used to obtain
such products originate in third countries or not.
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| (d) |
The following shall in any
event be considered as
insufficient working or processing to confer the status of originating products,
whether or not there is a change of heading, namely :-
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(1) | Operations to ensure the
preservation of products in good condition during transport and storage (ventilation, spreading out, drying,
chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal
of damaged parts, and like operations). |
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(2) |
Simple operations consisting of removal of dust, sifting or
screening, sorting, classifying, matching (including the making-up of
sets of articles), washing, painting, cutting up. |
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(3)(i) | changes of packing and
breaking up and assembly of
consignments |
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(ii) | simple slicing, cutting and
re-packing or placing in bottles,
flasks, bags, boxes, fixing on cards or boards, etc., and all other
simple packing operations. |
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(4) | The affixing of marks, labels
or other like distinguishing signs
on products or their packaging. |
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(5) |
Simple mixing of products,
whether or not of different kinds, where
one or more components of the mixture do not meet the conditions laid
down in these rules to
enable them to be considered
as originating products.
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(6)
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Simple assembly of parts of
products to constitute a complete
product.
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(7) |
A combination of two or more
operations specified in (a) to (f).
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| (8) |
Slaughter of animals.
(e)
The value of the non-originating materials parts or produce shall be:
(i) the
c.i.f. value at the time of importation of the materials, parts of produce
where this can be proven; or
(ii) the
earliest ascertainable price paid for the materials, parts or produce of
undetermined origin in the territory of the Contracting Parties where the
working or processing takes place. |
8.Cumulative rulesof
origin. -
In respect of a product, which complies with the
origin requirements provided in condition (b) of rule 5 and is
exported by any Contracting Party and which has used material,
parts or products originating in the territory of the other
Contracting Party, the value addition in the territory of the
exporting Contracting Party shall be not less than twenty five
per cent. of the f.o.b. value of the product under export subject
to the condition that the aggregate value addition in the
territories of the Contracting Parties is not less than thirty
five per cent. of the f.o.b. value of the product under export.
Explanation. - Cumulationas implied by Rule 8, means
that only goods which have acquired originating status in the
territory of one Contracting Party may be taken into account when
used as inputs for a finished product eligible for Preferential
Concession in the territory of the other Contracting Party.
9. Direct consignment.-
The following shall be
considered to be directly consigned from the exporting country to
the importing country, namely:-
(a) if the products are transported without
passing through the territory of any country other than the
countries of the Contracting Parties.
(b)
the products whose transport involves transit through one or
more intermediate countries with or without transhipment or
temporary storage in such countries:
Provided that -
(i) the transit entry is justified for
geographical reason or by considerations related exclusively to
transport requirements;
(ii) the
products have not entered into trade or consumption there; and
(iii)
the products have not undergone any operation there other than
unloading and reloading or any operation required to keep them in
good condition.
10. Treatment of Packing -
When determining the origin of products, packing should be
considered as forming a whole with the product it contains.
However, packing may be treated separately if the national
legislation so requires.
11. Certificates of origin -
Products eligible for a Certificate of origin in the form annexed
shall support
Preferential treatment issued by an
authority designated by the Government of the exporting country
and notified to the other country in accordance with the
certification procedures to be devised and approved by both the
Contracting Parties.
12. Prohibitions-
Either
country may prohibit importation of products containing any
inputs originating from States with which it does not have
economic and commercial relations.
13. Co-operation between
contracting parties -
(1) The Contracting Parties will do their best to
co-operate in order to specify origin of inputs in the
Certificate of origin.
(2) The Contracting Parties will take measures necessary
address, to investigate and, where appropriate, to take legal
and/or administrative action to prevent circumvention of this
Agreement through false declaration concerning country of origin
or falsification of original documents.
(3) Both the Contracting Parties will co-operate fully,
consistent with their domestic laws and procedures, in instances
of circumvention or alleged circumvention of the agreement to
address problems arising from circumvention including
facilitation of joint plant visits and contacts by
representatives of both Contracting Parties upon request and on a
case-by-case basis.
(4) If either Party believes that the rules of origin are
being circumvented, it may request consultation to address the
matter or matters concerned with a view to seeking a mutually
satisfactory solution. Each party will hold such consultations
promptly.
14.Review- These rules may be reviewed as
and when necessary upon request of either Contracting Party and
may be open to such modifications as may be agreed upon.
| 1. Goods consigned from
(Exporters' Business Name, Address, Country). |
Reference No.
INDO-SRI LANKA FREE TRADE AGREEMENT (ISFTA)
(Combined declaration and certificate)
Issued in.......................................
(Country)
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| 2. Goods consigned to
(Consignee's Name, Address, Country) |
4. For Official use |
| 3. Means of transport and
Route (as far as known) |
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| 5. Tariff item number |
6. Marks and numbers of packages |
7. Number and kind of packages:
description of goods |
8. Origin criterion (see Notes overleaf) |
9. Gross weight or other quantity |
10. Number and date of invoice |
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11. Declaration by the Exporter.
The undersigned hereby declares that the above details and
statements are correct; That all the goods were produced in
..............................................................
(Country)
and that they comply with the origin requirements
specified for those goods in ISFTA for goods exported to
.....................................................
(Importing Country)
......................................................
Place and date, signature of the authorised signatory
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12. Certificate:
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.
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I. General Conditions
To qualify for preference, products must :
(a) fall within a description of products eligible for
concessions in the country of destination under this
agreement;
(b) comply with ISFTA Rules of Origin. Each Article in a
consignment must qualify separately in its own right; and
(c) comply with the consignment conditions specified by the
ISFTA Rules of Origin. In general, products must be consigned
directly within the meaning of Rule 9 hereof from the country of
exportation to the country of destination.
II. Entries to be made in box 8
Preference products must be wholly produced or obtained in
the exporting Contracting Party in accordance with Rule 6 of the
ISFTA Rules of Origin, or where not wholly produced or obtained
in the exporting Contracting Party must be eligible under rule 7
or rule 8.
Products wholly produced or obtained enter the letter 'A'
in (a) box 8.
Products not wholly produced or obtained; the entry in box
8 (b) should be as follows :
1. Enter letter `B' in
box 8 for products, which meet the origin criterion according to
rule 7. Entry of letter would be followed by the sum of the value
of materials, parts or produce originating from non-contracting
parties or undetermined origin used, expressed as a percentage of
the f.o.b. value of the products; [example 'B' - ( ) per
cent].
2. Enter letter 'C' in
box 8 for products, which meet the origin criteria according to
rule 8. Entry of letter 'C' would be followed by the sum of the
aggregate content originating in the territory of the exporting
Contracting Party expressed as a percentage of the f.o.b. value
of the exported product : [example `C' ( ) per cent].
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