[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][1] [1st
March, 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) 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. (2) They shall come into force
on the date of their publication in the Official Gazette. These rules shall apply to
goods consigned from the territory of either of the Contracting Parties. 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. 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. 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. 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. (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. (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. (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. (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. (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). (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. (3) (i) changes of packing and
breaking up and assembly of consignments. (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. (4) The affixing of marks,
labels or other like distinguishing signs on products or their packaging. (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. (6) Simple assembly of parts of
products to constitute a complete product. (7) A combination of two or
more operations specified in (a) to (f). (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. 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. 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. 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. 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. Either country may prohibit
importation of products containing any inputs originating from States with
which it does not have economic and commercial relations. (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. 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) (See notes overleaf) 2. Goods consigned to (Consignee's Name, Address,
Country) 4. For Official use 3. Means of transport and Route (as far as known) 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 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 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. 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].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