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Dated: 19.08.2021

Verification of the Preferential Certificates of Origin and difficulties being faced by the trade in implementation of the Customs (Administration of Rules of Origin under Trade Agreements) Rules (CAROTAR), 2020

Trade has been facing severe issues after the implementation of the CAROTAR Rules, 2020. However, off late it has been observed that the field formations of Customs have not been sensitized appropriately to take the required measures on the CAROTAR Rules, 2020.

It is to bring to the attention of the Trade that, CBIC mandates that only representative certificates should be forwarded to the Board for verification of the Preferential Certificates of Origin, thereby instructing strict compliance of Para 4 of Circular no. 38/2020 – Customs dated August 21, 2020;

Notes that bulk verification requests are being referred from the field formations to the Board without citing appropriate grounds and without mentioning any specific information to be sought from the Verification Authority;

Clarifies that if the product of a given manufacturer has already been verified following the verification process, subsequent consignments of the same manufacturer imported with a claim to meet the same originating criteria, may not be considered for verification again; Highlights that upon forwarding verification request to the Board under Rule 6(1)(b) of CAROTAR, 2020, the proper officer must clearly indicate the reason to believe why goods are not meeting the prescribed origin criteria and also enlist specific information required to be obtained from the Verification Authority that the officer considers necessary to determine the origin; In this context, states that the verification requests should be communicated to the Board within the prescribed timelines of CAROTAR, 2020 and by strictly following prescribed standard procedures, formats and timelines;

Issues instruction for proper implementation of Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020): CBIC Instruction vide F. No. 456/319/2021-Cus-V(pt.1) dtd 17.08.2021.

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Source: CBIC, Dept. of Revenue, Ministry of Finance, Govt. of India

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