The Ministry of Finance (MoF) on October 21, 2024, issued clarifications on certain aspects of origin procedures under free trade agreements (FTAs).
The following has been stated: -
•The Board has noted challenges with import clearance involving third-party invoicing under FTAs, particularly with the ASEAN-India FTA, where discrepancies between the Certificate of Origin (COO) and third-party invoices led to denied preferential claims.
•Third-party invoicing is permitted under the FTA, and the COO serves as proof of origin, while the seller's invoice is for customs valuation.
•If origin criteria are questioned, proper verification processes must be followed, and denials should align with the specific trade agreement's provisions. Customs officials should be informed about these guidelines to ensure compliance and fair treatment.
The detailed instructions are given in the document below.
[Instruction No. 23/2024-Customs]
