Determination of Origin of Goods under the Asia-Pacific Trade Agreement, (formerly known as the Bangkok Agreement) Rules, 2018

Jul 03, 2018 | by Avantis RegTech Legal Research Team


The Central Board of Indirect Taxes and Customs (CBIC) vide notification dated  June 30, 2018 has notified the Determination of Origin of Goods under the Asia-Pacific Trade Agreement, (formerly known as the Bangkok Agreement) Rules, 2018 further to amend the Rules of Determination of Origin of Goods under the Asia-Pacific Trade Agreement, (formerly known as the Bangkok Agreement) Rules, 2006. They shall come into force on the 1st day of July, 2018.

        I.            for footnote 6, the following shall be substituted, namely:-

“6. As at Annexure-C.”.

 

      II.            after footnote 8, the following footnotes shall be inserted, namely:-

9- “The aggregate content” in rule 5 shall be calculated as the sum of the value of originating materials used as a input (VOM1) and the value for originating materials added by the Participating State where working or processing of the finished product has taken place (VOM2). VOM1 means value of the products which have acquired originating status in the territory of a previous Participating State, which shall be calculated on the basis of the customs value determined in accordance with Articles 1 through 8, Article 15, and the corresponding interpretative notes of the Customs Valuation Agreement. VOM2 means value of the originating materials obtained in the territory of the Participating State where working or processing of the finished product has taken place, and the value used as input in working or processing of the finished product in that Participating State, including direct labour cost, direct overhead cost, transportation cost and profit for the finished product. Under the above interpretation, the product shall be considered as a product originating in the territory of the Participating State where working or processing of the finished product has taken place, provided that the sum of VOM1 and VOM2 is not less than sixty percent. of its f.o.b. value

 

10 -  The provision of sub-clause (ii) of clause (b) of rule (6) of “the products have not entered into trade or consumption there” shall be interpreted that the products which remain under the control of customs authority of the intermediate non-Participating state without any proceedings of import clearance procedures shall be considered as directly consigned from the exporting Participating State to the importing Participating State. The expression of “entered into trade or consumption there” is understood that the import declaration on the product was accepted and the product was released out of a bonded area into the domestic market of the intermediate country to be consumed or subsequently exported under another contract. Therefore, the product that is temporarily stored in the bonded area under the control of customs authority and has not undergone any operations or processes other than those defined in sub-clause (iii) of clause (b) of rule (6), is understood to have not entered into trade or consumption.”.

[G.S.R. 603( E )]

 

URL:  http://egazette.nic.in/WriteReadData/2018/186941.pdf


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