Page 47 - GSTL_3rd September 2020_Vol 40_Part 1

2020 ] NEWS DESK J29
Government frames norms for enforcement of ‘rules of
origin’ for imports — Under FTAS
The Government has come out with norms for the enforcement of ‘rules
of origin’ provisions for allowing preferential rate of Customs duties on products
imported under free trade agreements.
The new norms have been framed with a view to checking inbound
shipments of low quality products and dumping of goods by a third country
routed through an FTA partner country.
The Department of Revenue has notified the ‘Customs (Administration
of Rules of Origin under Trade Agreements) Rules, 2020’ which would “come
into force on September 21, 2020”.
These rules “shall apply to import of goods into India where the import-
er makes a claim of preferential rate of duty in terms of a trade agreement,” it
said.
The “rules of origin” provision prescribes for the minimal processing
that should happen in the FTA country so that the final manufactured product
may be called originating goods in that country.
Under this provision, a country that has inked an FTA with India cannot
dump goods from some third country in the Indian market by just putting a label
on it. It has to undertake a prescribed value addition in that product to export to
India. Rules of origin norms help contain dumping of goods.
India has inked FTAs with several countries, including japan, South Ko-
rea, Singapore, and ASEAN members.
Under such agreements, two trading partners significantly reduce or
eliminate import/Customs duties on the maximum number of goods traded be-
tween them.
According to the notification, to claim preferential rate of duty under a
trade agreement, the importer or his agent, at the time of filing bill of entry, has
to make a declaration in the bill that the imported products qualify as originating
goods for preferential rate of duty under that agreement; and produce certificate
of origin.
The claim of preferential rate of duty may be denied by the proper officer
without verification if the certificate of origin is incomplete or has any alteration
not authenticated by the issuing authority or the certificate is produced after its
validity period has expired, it said.
The importer, it said, also has to possess all relevant information related
to country of origin criteria, including the regional value content and submit the
same to the proper officer on request.
[Source : The Financial Express, New Delhi, dated 24-8-2020]

Cabinet never discussed setting up of PM-CARES fund :
RTI
The setting up of the controversial PM-CARES fund, aimed at collecting
donations to fight the COVID-19 and similar crises in the future, was not dis-
cussed in the Union Cabinet, according to a series of RTI responses.

GST LAW TIMES  3rd September 2020  63