Learn more about the rules of origin and the resources needed to qualify your shipment for your preferred FTA rate processing. The new rules will help the importer correctly identify the country of origin, properly enforce the right of concession and assist customs authorities in ensuring the smooth running of legal imports under free trade agreements. For this reason, CBIC has actively engaged stakeholders in the webinar and other means to help them comply with the new rules and clarify any doubts. In the many free trade agreements, you will find different types of rules of origin (ROOs). They are specific to each free trade agreement and generally vary from agreement to agreement and product to product. While details may vary, many methods and formulas are repeated. Note: It is necessary to refer to the rule associated with the exported product. Regional value content can only be used if it is allowed by a product-specific rule. The rules of origin (ROC) are listed in the HS product classification agreements of the PDO: Australia, NAFTA, Chile, Colombia, CAFTA-DR, Korea, Singapore, Peru and Panama. Other ROC are based on a value method valued at 35%: Israel, Jordan, Bahrain, Morocco and Oman.
Section 28DA of the Customs Act of 1962 further states that the mere presentation of a CoO does not absolve the importer of the responsibility for due diligence in the accuracy and veracity of the information provided. If the importer does not do so, a written notification should be made to the Customs Risk Management Centre (CCM) to allow for a mandatory audit of the assessment of all subsequent import shipments. However, the mandatory review of the assessment should be terminated as soon as the importer demonstrates that it has an appropriate control system in place to exercise due diligence, as required by customs legislation 1962; The rules based on the RVC can be calculated using the following methods/formulas: net cost (NC), transaction value (TV), build-down and structure. This type of change in the tariff classification shows that non-native components have been sufficiently processed, either in the United States or in EsTV`s partner countries, to allow them to benefit from a preferential tariff under the free trade agreement. The amount of non-FTA components does not matter. Qualifying your product under ROC may consist of one of the following options: Importers who use the preferential tariff rate in accordance with the trade agreement are required to conduct a health review of the documentation/process/policy/procedure and to develop/implement best practices for obtaining appropriate information/data necessary to comply with CAROTAR 2020 and Section 28DA, and to comply with customs authorities. The new system does not allow importers to rely solely on CoO to impose concession fees. The new provisions will be covered by the following broad heads: this transformation requires a change in the HS classification code of non-native ingredients in the HS code of the final product (for example.
B transformation of wood into furniture). Learn more about tariff deferral rules. In Section 28DA, it is up to the importer to have sufficient information on how the country of origin criteria, including regional value and the specific criteria for each product defined in the roo of the trade agreement, are met.