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of entry format are being made to allow declaration in terms of Rule 3(a) and 3(d)
of CAROTAR, 2020.
1.3 This circular aims to provide procedure for sending verification
request to the Verification Authorities in exporting countries in terms of trade
agreements, Section 28DA and CAROTAR, 2020, and further guidelines for
implementation of aforementioned section and rules.
2. The CAROTAR, 2020 and Rules of Origin notified for a trade
agreement in terms of sub-section (1) of Section 5 of the Customs Tariff Act, 1975,
broadly provide the following grounds for verification :
(a) In case of a doubt regarding the genuineness of the Certificate of
Origin (CoO) such as any deficiency in the format of the certificate
or mismatch of signatures or seal when compared with specimens
on record.
(b) In case of a doubt on the accuracy of information regarding origin,
i.e. where a doubt arises on whether the product qualifies as an
originating good under the relevant Rules of Origin. In other
words, these are cases where there is a reasonable belief that a
product is not grown or not produced/manufactured in a
particular country or required value addition/change in
CTH/PSR etc., as the case may be, has not been achieved for the
goods to qualify as originating.
(c) Verification could also be undertaken 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-à-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
information as regards the manner in which country of origin criteria, including
the regional value content and product specific criteria, specified in the Rules of
Origin in the trade agreement, are satisfied. For this purpose, CAROTAR, 2020
has provided a form, containing list of basic minimum information which an
importer is required to obtain while importing goods under claim of preferential
rate of duty. Therefore, in case there is a doubt with regard to origin of goods,
information should be first called upon from the importer of the goods, in terms of Rule
5 read with Rule 4 of CAROTAR, 2020, before initiating verification with the
partner country in terms of Rule 6.
3.1 Section 28DA of the Act further states that mere submission of a
certificate of origin shall not absolve the importer of the responsibility to exercise
reasonable care to the accuracy and truthfulness of the information supplied. In
case an importer fails to provide information in terms of Section 28DA(1)(iii) of
the Act and as prescribed under CAROTAR, 2020, or does not exercise
reasonable care to ensure the accuracy and truthfulness of the information
furnished, this fact should be informed to Risk Management Centre of Customs
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