When we import Goods in India from any country we must need to check agreements for trade between India and exporting country. For example, if we are importing goods from Japan, we would have to check Comprehensive Economic Partnership Agreement (CEPA) and need to check HSN code of the goods to be imported from Japan. If HSN code covered in CEPA notification, we must ask exporter to provide certificate of origin along with a declaration that all the conditions mentioned in Customs (Administration of Rules of Origin under trade agreements (CAROTAR) are meeting. At the time of custom clearance in India we would have to submit shipping documents with custom department. For availing FTA/CEPA benefits (for availing concessional custom duty benefits) we would have to submit Certificate of origin and CAROTAR declaration. This will reduce custom duty so landed cost of imported material will reduce.
There is one very important point to be noted that 2020 onwards custom department shifted responsibility of checking eligibility of FTA/CEPA benefits from custom officer to importer.
Prior to 2020 importer only required to submit certificate of origin and get the concessional duty benefits.
Custom department issued a circular no 38/2020 dated 21.08.2020. According to this circular importer is responsible for checking genuineness of Certificate of origin. Custom department can raise query after custom clearance within 5 years.
Pushkar Mer 