Page 114 - ELT_1st September 2020_Vol 373_Part 5

N108 EXCISE LAW TIMES [ Vol. 373

2. For the above purpose, this Form contains a list of basic mini-
mum information which an importer is required to possess while import-
ing the goods.
3. Section 28DA of the Act further requires that the importer shall
exercise reasonable care to accuracy and truthfulness of the information
supplied and the preferential claim. Hence, any additional information,
as deemed fit to ascertain correctness of the country of origin criterion,
may also be obtained.
4. Wherever necessary, technical terms used in the Form have
been explained as below for general guidance. Each trade agreement,
however, has its own set of Rules of Origin, and precise definition of
each of the term listed below may vary. Importers 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.
(i) Goods Wholly Obtained (WO) : Goods produced or ob-
tained without any non-originating input material incorpo-
rated.
(ii) Goods that are produced using non-originating materials,
i.e. not Wholly Obtained, are required to undergo substantial
transformation in a country for the good to be qualified as
originating. This criterion can be met using following method
in combination or standalone, depending upon the criteria
assigned for a good, -
(a) Change in Tariff Classification (CTC);
(b) Regional or Domestic Value Content (RVC/DVC);
and
(c) Process rule.
(iii) Value Content Method : This rule requires that a certain
minimum percentage of the good’s value originates in a
country for the good to be considered as originating. The
components of value and formula for calculating such value
addition may vary from agreement to agreement.
(iv) Change in Tariff Classification (CTC) Method : To qualify
under this origin criterion, non-originating materials that are
used in the production of the good must not have the same
HS classification (e.g. Chapter level, Heading level or Sub
Heading Level as may be required in the Rules of Origin) as
the final good. Depending on the Trade Agreement require-
ments, the good would have to undergo either a change in
Chapter (CC), Heading (CTH) or Sub Heading level (CTSH)
in order to qualify for preferential treatment under the FTA.
Producers and/or exporters should know the HS classifica-
tion of the final good and the non-originating raw materials.
(v) Process Rule Method : This rule requires the good which is
being considered as originating, to be produced through spe-
cific chemical process in the originating country.

EXCISE LAW TIMES  1st September 2020  114