(1) These
rules may be called the Rules of Determination of Origin of Goods under the
Agreement on South Asian Free Trade Area (SAFTA), hereinafter referred to as
the "Agreement", between the Governments of SAARC (South Asian
Association for Regional Cooperation) Member States comprising the People's
Republic of Bangladesh, the Kingdom of Bhutan, the Republic of India, the
Republic of Maldives, the Kingdom of Nepal, the Islamic Republic of Pakistan
and the Democratic Socialist Republic of Sri Lanka. (2) They
shall come into force on the 1st day of July 2006. These Rules shall apply to
products eligible for preferential treatment under SAFTA. No product shall be deemed
to be the produce or manufacture of any Contracting State unless the conditions
specified in these rules are complied with in relation to such products, to the
satisfaction of the designated Authority. Products covered by the
Agreement imported into the territory of a Contracting State from another
Contracting State which are consigned directly within the meaning of Rule 12
hereof, shall be eligible for preferential treatment if they conform to the
origin requirement under any one of the following conditions: (a) Products
wholly produced or obtained in the territory of the exporting Contracting State
as defined in Rule 5; or (b) Products
not wholly produced or obtained in the territory of the exporting Contracting
Stat e provided that the said products are eligible under Rule 6. Within the meaning of Rule
4(a), the following shall be considered as wholly produced or obtained in the
territory of the exporting Contracting State (a) raw
or mineral products [1]extracted
from its soil, its water extending upto its Exclusive Economic Zone (EEZ), or
its sea bed extending upto its seabed or continental shelf; (b) Agriculture,
vegetable and forestry products harvested there; (c) animals
born and raised there; (d) products
obtained from animals referred to in clause (c) above; (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[2],[3]; (g) products
processed and/or made on board its factory ships exclusively from products
referred to in clause (f) above[4],[5]; (h) raw
materials recovered from used articles collected there; (i) waste
and scrap resulting from manufacturing operations conducted there; (j) products
taken from the seabed, ocean floor or subsoil thereof beyond the limits of
national jurisdiction, provided it has the exclusive rights to exploit that sea
bed, ocean floor or subsoil thereof; (k) goods
produced there exclusively from the products referred to in clauses (a) to (j)
above. Within the meaning of Rule 4
(b), products not wholly produced or obtained shall be subject to Rule 7 and
any of the conditions prescribed under Rule 8, Rule 9 or Rule 10. 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: (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) changes
of packing and breaking up and assembly of consignments, (4) simple
slicing, cutting and repacking or placing in bottles, flasks, bags, boxes,
fixing on cards or boards, etc., and all other simple packing operations. (5) the
affixing of marks, labels or other like distinguishing signs on products of
their packaging; (6) 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; and mere dilution with
water or another substance that does not materially alter the characteristics
of the product; (7) simple
assembly of parts of products to constitute a complete product; (8) a
combination of two or more operations specified in (1) to (6); (a) Products
originating in the exporting Contracting State shall be considered to be
sufficiently worked or processed for the purposes of granting originating
status if they fulfill the following conditions: (b) The
final product is classified in a heading at the four digit level of the
Harmonized Commodity Description and Coding System differently from those in
which all the non-originating materials 5 used in its manufacture are classified
and (c) Products
worked on or processed as a result of which the total value of the materials,
parts or produce originating from other countries or of undetermined origin
used does not exceed 60% of the FOB value of the products produced or obtained
and the final process of manufacture is performed within the territory of the
exporting Contracting State. (d) Notwithstanding
the condition laid down in paragraph (a) of this Rule, the products listed in Annex-A shall be eligible for
preferential treatment if they comply with Rule 8 (a) or they fulfill the
condition corresponding to those products as mentioned in the Annex-A. Unless otherwise provided
for, products worked on or processed in a Contracting State using the inputs
originating in any Contracting States within the meaning of Rule 4 shall be
eligible for preferential treatment provided that (a) the
aggregate content (value of such inputs plus domestic value addition in further
manufacture) is not less than 50 percent of the FOB value; (b) the
domestic value content (value of inputs originating in the exporting
Contracting State plus domestic value addition in further manufacture in the
exporting Contracting State), is not less than 20 percent of the FOB value; and (c) the
final product satisfies the condition of (d) change
in classification at the four digit level (CTH) as provided under Rule 8 (a)
(i); or (e) change
in classification at the six-digit level (CTSH) as agreed upon in the Product
Specific Rules reflected in Rule 8 (b). The products originating in
the Least Developed Contracting States shall be allowed a favourable 10
percentage points applied to the percentage applied in Rule 8. The products
originating in Sri Lanka shall be allowed a favourable [6]
percentage points applied to the percentage applied in Rule 8. (a) The
value of the non-originating materials, parts or produce shall be: (b) The
CIF value at the time of importation of the materials, parts or produce where
this can be proven or (c) The
earliest ascertainable price paid for the materials, parts or produce of
undetermined origin in the territory of the Contracting States where the
working or processing takes place. (d) In
order to determine whether or not a product originated in the territory of a
Contracting State 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. The following shall be
considered as directly consigned from the exporting Contracting State to the
importing Contracting State: (a) if
the products are transported without passing through the territory of any
non-Contracting State: (b) the
products whose transport involves transit through one or more intermediate
non-Contracting States with or without transshipment or temporary storage in
such countries, provided that: (c) the
transit entry is justified for geographical reason or by considerations related
exclusively to transport requirements; (d) the
products have not entered into trade or consumption there; (e) the
products have not undergone any operation there other than unloading and
reloading or any operation required to keep them in good condition; (f) the
products have remained under the customs control in the country of transit. 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. Detailed Operational
Certification Procedures for implementation of these Rules of Origin are at Annex-B. Any Contracting State may
prohibit importation of products containing any inputs originating from States
with which it does not have economic and commercial relations. (a) The
Contracting States will do their best to co-operate in order to specify origin
of inputs in the Certificate of origin. (b) The
Contracting States will take measures necessary to address, to investigate and,
where appropriate, to take legal and/or administrative action to prevent
circumvention to these Rules through false declaration concerning country of
origin or falsification of original documents. (c) The
Contracting States will co-operate fully, consistent with their domestic laws
and procedures, in instances of circumvention or alleged circumvention of these
Rules to address problems arising from circumvention including facilitation of
joint plant visits, inspection and contacts by representatives of Contracting
States upon request and on a case-by-case basis. (d) If
any Contracting State 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 State will hold such
consultations promptly. These rules may be reviewed
as and when necessary upon request of any Contracting State and may be open to
such modifications as may be agreed upon by the SAFTA Ministerial Council. PRODUCT SPECIFIC
RULES UNDER SAFTA RULES OF
ORIGIN 1. For
the purposes of Rule 8 (b) of the SAFTA Rules of Origin, the products listed
under column (3) and corresponding to heading mentioned under column (2) would
be subject to Rule specified under column (4) in the following Table. 2. The
term "CTH" in column (4) below shall mean that the final product is
classified in a heading at the four-digit level of the Harmonised Commodity
Description and Coding System differently from those in which all the
non-originating materials used in its manufacture are classified. 3. The
term "CTSH" in column (4) below shall mean that the final product is
classified in a heading at the six-digit level of the Harmonised Commodity
Description and Coding System differently from those in which all the
non-originating materials used in its manufacture are classified. 4. The
DVA mentioned in percentage in column (4) below shall mean the minimum value
addition in the Exporting Contracting State, calculated as per the following
formula: S.No. HS Heading
/Chapter Harmonised
Description Product Specific
Rules (1) (2) (3) (4) 1. 060499 Other CTSH & 30%
DVA 2. 080132 Shelled Cashew
nuts CTSH & 60%
DVA 3. 081350 Mixtures of
dried fruits of this Chapter CTSH & 60%
DVA 4. 150790 -Other CTSH & 30%
DVA 5. 150890 -Other CTSH & 30%
DVA 6. 150990 -Other CTSH & 30%
DVA 7. 151190 -Other CTSH & 30%
DVA 8. 151219 --Other CTSH & 30%
DVA 9. 151229 --Other CTSH & 30%
DVA 10. 151319 --Other CTSH & 30%
DVA 11. 151329 --Other CTSH & 30%
DVA 12. 160249 Other,
including mixtures CTSH & 30%
DVA 13. 210112 Preparations
with a basis of extracts, essences, concentrates or with a basis of coffee CTSH & 30%
DVA 14. 210120 Extracts,
essences and concentrates, of tea or ate, and preparations with a basis of
these extracts, essences or concentrates or with a basis of tea or mate CTSH & 30%
DVA 15. 210390 Other CTSH & 30%
DVA 16. 252321 White cement,
whether or not artificially coloured CTSH & 30%
DVA 17. 252329 Other: CTSH & 30%
DVA 18. 252330 Aluminous
cement : CTSH & 30%
DVA 19. 283523 Of trisodium CTSH & 30%
DVA 20. 441029 --Other CTSH & 30%
DVA 21. 441032 --Surface-covered
with melamine-impregnated paper CTSH & 30%
DVA 22. 441033 --Surface-covered
with decorative laminates of plastics CTSH & 30%
DVA 23. 441039 --Other CTSH & 30%
DVA 24. 441119 Other CTSH & 30%
DVA 25. 441129 Other of fire
board of a density exceeduing 0.5g/cm3 CTSH & 30%
DVA 26. 450190 Other CTSH & 30%
DVA 27. 481820 Handkerchiefs,
cleansing or facial tissues Only CTH 28. 481840 Sanitary
towels Only CTH 29. 701990 Other CTSH & 30%
DVA 30. 720221 Ferro-silicon
containing by weight more than 55 % of silicon CTSH & 30%
DVA 31. 830110 Padlocks CTSH & 30%
DVA 32. 841011 --Of a power
not exceeding 1,000 kW CTSH & 30%
DVA 33. 841311 Pumps for
dispensing fuel or lubricants, of the type used in filling-stations or in
garages CTSH & 30%
DVA 34. 841319 Other pumps
fitted or designed to be fitted with a measuring device CTSH & 30%
DVA 35. 841320 Hand pumps,
other than those of subheading 8413.11 or 8413.19 CTSH & 30%
DVA 36. 841330 Fuel,
lubricating or cooling medium pumps for internal combustion piston engines CTSH & 30%
DVA 37. 841340 Concrete pumps CTSH & 30%
DVA 38. 841350 Other
reciprocating positive displacement pumps CTSH & 30%
DVA 39. 841360 Other rotary
positive displacement pumps CTSH & 30%
DVA 40. 841370 Other
centrifugal pumps CTSH & 30%
DVA 41. 841381 Pumps CTSH & 30%
DVA 42. 841382 Liquid
elevators CTSH & 30%
DVA 43. 841410 Vacuum pumps CTSH & 30%
DVA 44. 841420 Hand or
foot-operated air pumps: CTSH & 30%
DVA 45. 841430 Compressors of
a kind used in refrigerating equipment CTSH & 30%
DVA 46. 841440 Air
compressors mounted on a wheeled chassis for towing: CTSH & 30%
DVA 47. 841451 -- Table,
floor, wall, window, ceiling or roof fans, with a self-contained electric
motor of an output not exceeding 125W CTSH & 30%
DVA 48. 841459 Other: CTSH & 30%
DVA 49. 841460 Hoods having a
maximum horizontal side not exceeding 120 cm CTSH & 30%
DVA 50. 841480 Other CTSH & 30%
DVA 51. 841510 [1] Includes
mineral fuels, lubricants and related materials as well as mineral or metal
ores. [2] "Vessels"
shall refer to fishing vessels engaged in commercial fishing, registered in the
country of the Contracting State and operated by a citizen or citizens of the
Contracting State or partnership, corporation or association, duly registered
in such country, at least 60 per cent of equity of which is owned by a citizen
or citizens and/or Government of such Contracting State or 75 per cent by
citizens and/or Governments of the Contracting States. However, the products
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 State will also be eligible for preferential treatment. [3] In respect of
vessels or factory ships operated by Government agencies, the requirements of
flying the flag of the Contracting State do not apply. [4] In respect of
vessels or factory ships operated by Government agencies, the requirements of
flying the flag of the Contracting State do not apply. [5] For the purpose
of this Agreement, the term "factory ship" means any vessel, as
defined used for processing and/or making on board products exclusively from
those products referred to in clause (f) of Rule 6. [6] Non-originating
material means material originating from countries other than Contracting
States and material of undetermined origin.The Rules of Determination of Origin of
Goods under the Agreement on South Asian Free Trade Area (SAFTA)