Trade Update 4

BUDGET UPDATE

PART 1: INTERNATIONAL TRADE LAW

Power of Authority to Prohibit Import/ Export
A. Power to prohibit import or export of goods for “prevention of injury to the economy of the country” was previously restricted to gold and silver; now extended to ‘all goods’.

Rules of Origin
B. Detailed process laid down to test compliance with Rules of Origin (ROO) under Preferential Trade Agreements.
a. Reliance on certificate of origin issued by notified authorities in exporting country
no longer sufficient; Importer to provide declaration of compliance, maintain
proper records, and provide data to prove compliance with Rules of Origin.
b. Preferential trade benefits may be disallowed or temporarily suspended in case importer fails to provide requisite information for verification.
c. In case of suspension, goods may be released subject to furnishing of security or payment of differential duty in prescribed manner.

Amendment in Laws concerning Trade Remedy Measures

Safeguard Measures
C. Amendments made in safeguard provisions related to protection against surge in quantity of import of any article or under such conditions that causes serious injury to the domestic
industry.
a. Measures to now include application of a tariff rate quota, in addition to imposition of a safeguard duty;
b. Tariff rate quota measures, where used, shall not be fixed below the average level of imports in last 3 representative years unless deemed necessary.