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“Indirect Tax I Indirect Tax Litigation I Customs & FTP I Central Licensing I Arbitration I Advisory”

Dated: 22.04.2025

CBIC Issues Circular to Align CAROTAR Rules with Global Proof of Origin Standards

The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 14/2025-Customs dated 21st April 2025, notifying key amendments to align the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020) with global trade norms by adopting the term “Proof of Origin” in place of “Certificate of Origin”.

Background and Objective

The amendment reflects India’s effort to align domestic customs procedures with evolving global trade practices, particularly the transition to self-certification and origin declarations under trade agreements. This shift is codified through Notification No. 14/2025-Customs (N.T.) dated 18.03.2025, and amends Section 28DA of the Customs Act, 1962.

Key Changes Introduced:

1. Definition Update

• “Proof of Origin” now encompasses:
  • Certificates of Origin issued by designated authorities.
  • Self-declarations made by eligible exporters or producers.
• The term “Issuing Authority” now includes any authority or person designated to issue Proofs of Origin under trade agreements.

2. Impact on CAROTAR, 2020

• The term “Certificate of Origin” in all provisions of CAROTAR, 2020 is replaced by “Proof of Origin”.
• This change enables traders to use a broader range of documentary evidence for origin claims, based on the trade agreement in force.

3. Verification Procedure Update

• All verification requests concerning Proofs of Origin must be sent to:

FTA Cell, Directorate of International Customs (DIC)
Room No. 19-A, 4th Floor, Jeevan Deep Building, Sansad Marg, New Delhi – 110001
Email: ftaroo-cbic@gov.in | Tel: 011-23364619

• The FTA Cell is now responsible for:
  • Uploading specimen seals and signatures of partner countries’ issuing authorities into the ICES portal.
  • Mailing copies of these to the DRI Headquarters for investigation purposes.
  • Circulating specimen details to non-EDI customs locations via email.

4. Operational Oversight

• DIC will set up a Standard Operating Procedure (SOP) for monitoring specimen receipt and verification.
• Periodic compliance and status reports will be submitted to CBIC.
• All specimen signatures/seals received until 31st March 2025 must be uploaded to ensure smooth procedural transition.

Effective Implementation

• The changes come into immediate effect and must be read in conjunction with Circular No. 38/2020-Customs.

Significance for Trade

• Simplifies origin documentation under FTAs by allowing flexible proof options.
• Streamlines verification and enforcement mechanisms for customs.
• Reduces compliance burden for exporters, particularly under self-certification systems like RCEP, EU GSP, etc.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

We offer Legal advice and litigation support in matters related to Indirect Tax-Customs, FTP, other Indirect Tax matters & Arbitration law, all sorts of Central licensing and related matters. Come and explore the new way of doing business with us!

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

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