In News
- The Union Finance Ministry recently clarified certain provisions of Customs (Administration of Rules of Origin under Trade Agreements)Â CAROTAR Rules.
About
- The Ministry has advised customs field officers to be sensitive in applying CAROTAR and maintain consistency with the provisions of relevant trade agreements or its Rules of Origin.
- It also clarifies that the exemptions specified in a Free Trade Agreement (FTA) with regard to the country of origin would prevail in case of a conflict between the revenue department and an importer.
- India has inked FTAs with several countries, including UAE, Mauritius, Japan, South Korea, Singapore, and ASEAN members.
- Under FTA, the trading partners agree to significantly reduce or eliminate import/customs duties on the maximum number of goods traded between them, besides relaxing norms to promote trade in services and investments.
Customs (Administration of Rules of Origin under Trade Agreements) or CAROTAR Rules
- These Rules came into effect from September 21, 2020.
- It empowers the customs officers to ask the importer to furnish further information, consistent with the trade agreement, in case the officer has reasons to believe that the country-of-origin criteria have not been met.Â
- Where the importer fails to provide the requisite information, the officer can make further verification consistent with the trade agreement.
Source: FE
