Customs Tariff [Determination of Origin of Products under the Duty Free Tariff Preference Scheme for Least Developed Countries] Rules, 2008
[Notification No. 100/2008-Cus. (N.T.), dated 13-08-2008]
1. Short title and commencement.- (1) These rules may be called the Customs Tariff [Determination of Origin of Products under the Duty Free Tariff Preference Scheme for Least Developed Countries] Rules, 2008.
These rules shall come into force from the date of their
of Origin.- No product shall be
deemed to be originating in the beneficiary country unless the conditions
specified in these rules are complied with in relation to such products, to the
satisfaction of the Government Authority authorised by the exporting beneficiary
country to issue the Certificate of Origin under the Duty Free Tariff Preference
Scheme for Least Developed Countries (hereinafter referred to as the said
Claim at the time of importation.- The
importer of the product shall, at the time of importation,-
(a) make a claim that the products are the produce or manufacture of the beneficiary country from where they are imported and such products are eligible for tariff preferences, and
produce the evidence specified in these rules.
products.- Products, covered by
the said scheme, imported into India from a beneficiary country, which are
consigned directly within the meaning of rule 7, shall be eligible for tariff
preferences if they conform to the following origin requirements namely:-
products wholly produced or obtained in the exporting beneficiary
products not wholly produced or obtained in the exporting beneficiary
country, provided it fulfils the
conditions specified under rule 5.
For the purposes this rule, the products wholly produced or obtained in the
exporting beneficiary country means,-
Raw or mineral products including mineral fuels, lubricants and related
materials as well as mineral or metal ores extracted
from its territory;
plant and plant products, including agriculture, vegetable and forestry
products grown or harvested there;
live animals born and raised there;
products obtained from animals referred to in clause (c) above;
products obtained by hunting, trapping, fishing or aquaculture conducted
products of sea fishing and other marine products taken from outside its
Territorial Waters and Exclusive Economic Zone
by vessels registered and
flying the flag of the beneficiary country ;
products processed and/or made on board its factory ships exclusively
from products referred to in clause (f) above;
scrap and waste derived from manufacturing or processing operations
conducted there and fit only for disposal or for the recovery of raw materials;
used articles collected there which can no longer perform their original
purpose nor are capable of being restored or repaired and which are fit only for
disposal or for the recovery of parts or raw materials;
products taken from the seabed, subsoil or ocean floor thereof beyond its
territory, provided the beneficiary country has the rights to exploit that sea
bed, subsoil or ocean floor thereof in accordance with the provisions of the
United Nations Convention on the Law of the Sea;
products produced there exclusively from the products referred to in
clauses (a) to (j) above.
not wholly produced or obtained.- For
the purposes of rule 4 and subject to the provisions of rule 6, products not
wholly produced or obtained shall be considered as originating in the exporting
beneficiary country if they fulfil the following conditions:-
(i) The total value of the non-originating materials, parts, or produce used in the manufacture of the export product does not exceed 70 per cent. of the Free on Board (FOB) value of the product so produced or obtained (i.e. the local value added content in the beneficiary country is at least 30 per cent.);
(ii) the product so produced or obtained is classified in a Heading, (at 4-digit level of the Harmonised System) which is different from those in which all the non-originating materials used in its manufacture are classified (Change in Tariff Heading Rule); and
the final process of manufacture is performed within the territory of the
exporting beneficiary country.
(a) For the purposes of calculating the local value added content, the
following formula shall be applied:-
Value Added Content (X %) =
on Board (FOB) Price
of non-originating materials
on Board (FOB) Price
(In order for a product to
qualify as originating X ≥ 30 %)
(b) The value of the non-originating materials, parts, or produce or materials of undetermined origin shall be:
the Cost Insurance and Freight (CIF) value,
at the time of importation of the materials, parts, or produce where this
can be proven; or
the earliest ascertainable
price paid for the materials , parts or produce of undetermined origin in the
territory of the beneficiary where the working or processing takes place.
If in the manufacturing of the
final export product, the originating material from
India is used as input, the value of such input shall be included in the
calculation of the local value added content as it would be deemed to be
originating in the exporting beneficiary country.
Insufficient Operations.- The
following operations shall in any event be considered insufficient working or
processing to confer the originating status-
(a) operations to ensure the
preservation of products in good condition during transport and storage (such as
drying, freezing, keeping in brine, ventilation, spreading out, chilling,
placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged
parts, and like operations);
(b) simple operations
consisting of removal of dust, sifting or screening, sorting, classifying,
matching (including the making-up of sets of articles), washing, painting,
(c) changes of packing and
breaking up and assembly of consignments;
(d) simple cutting,
slicing and repacking or placing in bottles, flasks, bags, boxes, fixing
on cards or boards, and all other simple packing operations;
(e) affixing of marks, labels
or other like distinguishing signs on products or their packaging;
(f) 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;
(g) simple assembly of parts of
products to constitute a complete product and or disassembly of products into
parts and/or packing thereof;
(h) slaughter of animals;
(i) mere dilution or
mixing of products with water or another substance that does not materially
alter the characteristics of the products so obtained; and
(j) a combination of two
or more operations referred to in paragraphs (a) to (i).
7. Direct consignment.- A product, in respect of which tariff preference is claimed, shall be considered as directly consigned from the exporting beneficiary country,-
(a) if it has been transported without passing through the territory of any other country;
(b) The product, whose transport involves transit through one or more intermediate countries with or without trans-shipment or temporary storage in such countries ;
(i) their transit entry is justified for geographical reasons or by considerations related exclusively to transport requirements;
(ii) the products have not entered into trade or consumption there;
(iii) the products have not undergone any operation other than unloading and reloading or any operation required to keep them in good condition; and
(iv) the products have remained under the customs control in the country of transit.
Treatment of packing.-
The packages and packing
materials or cases or containers for retail sale, when classified together with
the packaged products, according to General rule 5 of the rules for
interpretation of the Harmonised System, shall not be taken into account for
considering whether packages and packing materials or cases or containers fulfil
the criterion corresponding to a change of tariff classification of the said
If the product is subject to an ad-valorem percentage criterion, the
value of the packages and packing materials or cases or container for retail
sale shall be taken into account in its origin assessment, in case they are
treated as being one for customs purposes with the products in question.
The containers and packing materials exclusively used for the transport
of a product shall not be taken into account for determining the origin of any
9. Certificate of Origin.- Products eligible for preferential concessions shall be supported by a Certificate of Origin as per the format in Annexure-A, issued by a Government authority designated by the exporting beneficiary country and presented to the Customs authorities in accordance with the Procedures as set out in Annexure-B.
Goods consigned from (Exporters Business Name, Address, Country)
Free Tariff Preference Scheme for Least Developed Countries
declaration and certificate)
2. Goods consigned to (Consignees Name, Address, Country)
For Official use
3. Means of transport and route (as far as known)
Harmoni-sed System (HS) Code
Marks and numbers of packages
Number and kind of packages: description of goods
Origin criterion (see Notes overleaf)
Gross weight or other quantity
Number and date of invoice
Declaration by the Exporter
The undersigned hereby declares that the
above details and statements are correct; That all the goods were
that they comply with the origin requirements specified for those goods
in Duty Free Tariff Preference Scheme for Least Developed Countries .
and date, signature of the authorised signatory
It is hereby certified, on the basis of
control carried out, that the declaration by the exporter is correct.
and date, signature and stamp of certifying authority.
To qualify for preference, products must:
fall within a description of products eligible for concessions in India
under this Scheme.
comply with Rules of Origin for the Duty Free Tariff Preference Scheme
for Least Developed Countries. Each product in a consignment must be originating
separately in its own right; and
comply with the consignment conditions specified in the Rules of Origin
for the Duty Free Tariff Preference Scheme for Least Developed Countries .
Entries to be made in Box
Preference products must be
wholly produced or obtained in the exporting beneficiary country in accordance
with rule 4 of the Rules of Origin for the Duty Free Tariff Preference Scheme
for Least Developed Countries, or where not wholly produced or obtained in the
exporting beneficiary country they must be eligible under rule 5.
For products wholly produced or obtained - enter the letter A
in box 8.
For products not wholly produced or obtained - enter
the letter B in box 8 for
products, which meet the origin criterion according to rule 5. Entry of letter
B would be followed by the percentage of Local Value Added Content, as
calculated under rule 5: (example B(-- )
FOR ISSUANCE AND PRESENTATION OF CERTIFICATE OF ORIGIN UNDER THE DUTY FREE
TARIFF PREFERENCE SCHEME FOR LEAST DEVELOPED COUNTRIES
the purpose of implementing the Rules of Origin for the Duty Free Tariff
Preference Scheme for Least Developed Countries, the under-mentioned procedure
on the issuance and presentation of the Certificate of Origin and other related
administrative matters shall be followed:
The certificate of origin issued by the Government authorities designated
by the Government of the exporting Beneficiary country (hereinafter referred as
Issuing Authority) would only be accepted.
of Certificate of Origin
The certificate of origin shall be on A4 size paper, completed in English
and in conformity to the specimen as shown in Annexure A.
The certificate of origin shall comprise of one original and three copies
of the following colours:
Each certificate of origin shall bear a reference number separately given
by each place or office of issuance.
The Issuing Authority while retaining the duplicate copy shall provide
the original copy and remaining two copies to the exporter.
The original copy together with the triplicate shall be forwarded by the
exporter to the importer for submission of the original copy to the Customs
Authority at the port or place of importation.
The triplicate shall be retained by the importer and the quadruplicate
shall be retained by the exporter.
of the provisions
The certificate of origin issued by the Issuing authority in the
exporting country shall indicate the relevant rules and applicable criteria in
Neither erasures nor superimpositions shall be allowed on the
certificates of origin. Any alteration shall be made by striking out the
erroneous materials and making any addition required. Such alterations shall be
approved by an official authorized to sign the certificate of origin and
certified by the Issuing authority. Unused spaces shall be crossed out to
prevent any subsequent addition.
The certificate of origin shall be issued by the relevant Issuing
Authority of the exporting country at the time exportation, or within 3 working
days from the date of shipment, whenever the products to be exported can be
considered originating in that country within the meaning of the rules of origin
for the Scheme.
In exceptional cases where a certificate of origin has not been issued at
the time of exportation or within 3 working days from the date of shipment due
to involuntary errors or omissions or other valid causes, the certificate of
origin may be issued retroactively but no longer than 45 days from the date of
shipment, bearing the word Issued Retroactively
In the event of theft, loss or destruction of a certificate of origin,
the exporter may apply in writing to the Issuing Authority which issued it for a
certified true copy of the original and triplicate to be made on the basis of
the export documents in their possession bearing the endorsement of the word
CERTIFIED TRUE COPY (in lieu of the original certificate) in Box 12 of the
certificate of origin. This copy shall bear the date of the original Certificate
of origin. The certified true copy of a certificate of origin shall be issued
within the validity period of the original Certificate of origin and on the
condition that the exporter provides to the relevant Issuing Authority the
quadruplicate copy. The validity of certified true copy of the certificate of
origin would be the same as that of the original certificate so issued.
at the time of Importation
The original certificate of origin shall be submitted to the Customs
Authorities at the time of lodging the import entry for the products concerned.
12. The following time limit for the presentation of the certificate be observed:
validity of the certificate of origin shall be twelve months from the date of
Certificate of origin must be
submitted to the Customs Authority within the validity period.
Where the certificate of
origin is submitted after the expiration of the validity of the certificate of
origin, such certificate is still to be accepted when failure to observe the
time limit results from force majeure
or other valid reasons beyond the control of the exporter.
In all cases, the relevant Customs Authority in India may accept such
certificate of origin provided that the products have been imported before the
expiry of the validity of the certificate of origin.
The discovery of minor discrepancies between the statements made in the
certificate of origin and those made in the documents submitted to the Customs
Authority of India for the purpose of carrying out the formalities for clearance
of import, the products shall not ipso
facto invalidate the certificate of origin, if it does in fact correspond to
the said products.
In cases where the Certificate of Origin is rejected by the Custom
Authorities in India, the original Certificate of Origin shall be returned to
the issuing authority within a reasonable period but not exceeding two (2)
months. The grounds for denial of
preferential tariff treatment shall be duly notified to the importer and the
The Customs Authorities of India may request a retroactive check at
random and/or when it has reasonable doubt as to the authenticity of the
document or as to the accuracy of the information regarding the true origin of
the product in question or of certain parts thereof through designated nodal
authority as per the procedure laid down under the said Duty Free Tariff
When destination of all or parts of all or parts of the products exported
to specified port is changed, before or after their arrival in India, the
following rules shall be observed:
products have already been submitted to the Customs Authority in the specified
importing port , the certificate of origin shall by a written application of the
importer ,be endorsed to this effect for all or parts of products by the said
Authority and the original returned to the importer.
changing of destination occurs during transportation to India as specified in
the certificate of origin, the exporter shall apply in writing concerned Customs
Authority, accompanied with the issued certificate of origin, for the new
For the purpose of implementing the provisions of rule 7 of the Rules of
Origin, the following shall be produced to the customs authority of India at the
time of importation:
a through Bill of Lading issued in the exporting country;
a certificate of origin issued by the Issuing Authority of the exporting
a copy of the original commercial invoice in respect of the product; and
supporting documents in evidence that other requirements of rule 7 have
been complied with.
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