Knowledge Resource

Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020

The Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR) has been notified pursuant to section 28DA of the Customs Act, 1961 (Act) and
have come into force as on September 21, 2020. We are providing below the key highlights of CAROTAR. In case of any further query, please contact us directly.

Obligations of the importer

1. To claim preferential rate of duty under a trade agreement, the importer must produce a certificate of origin (CoO) covering each item on which preferential rate of duty is claimed.
The importer must also file the following information in the bill of entry:
a. declaration that the goods qualify as originating goods for preferential rate of duty under the relevant trade agreement;
b. respective tariff notification;
c. details of CoO, including its (i) reference number, (ii) date of issuance, (iii)
originating criteria, (iv) if accumulation/cumulation is applied, (v) if the CoO is issued by a third country (back to back), and (vi) if goods have been transported
directly from the country of origin

2. The importer claiming preferential rate of duty must also possess the following minimum information and submit the same to the customs authority on request:
a. production process undertaken in country of origin with respect to production of the imported good.
b. originating criteria prescribed in the Rules of Origin as claimed (Wholly Obtained;
Regional Value Content; Change in Tariff Head; Change in Tariff Sub-Head; Change in Chapter).
c. where the good is claimed to be Wholly Obtained, the process through which it is claimed to fall under this category in accordance with the relevant trade agreement
under which the preferential rates are claimed.
d. if the goods are not Wholly Obtained, the manufacturing/processing undertaken in the country of origin, the description of good under import and its classification,
the details of whether manufactured by producer of final good or procured by producer locally from a third party and in case procured from third party, the conformation and documentary proof of origin.

3. CAROTAR casts an obligation on the importer to do its due diligence and exercise reasonable care to ensure the accuracy and truthfulness of the aforesaid information and
documents pertaining to the claimed country of origin.