CAROTAR, 2020 implements the Minister of Finance`s commitment in her Budget 2020 speech to protect domestic industry from abuse of free trade agreements. The Finance Minister said: „Inappropriate claims to FTA benefits have posed a threat to the domestic industry. Such imports require strict controls. In this context, appropriate provisions are introduced in the Customs Act of 1962. CAROTAR, 2020, in conjunction with Circular No. 38/2020-Cus of 21 August 2020, complement the existing operational certification procedures, provided for by various trade agreements (FTA / PTA / ECSC / CEPA). An importer is now required to exercise due diligence before importing the goods to ensure that they meet the prescribed origin criteria. A list of the minimum information that the importer must hold has also been provided in the rules together with general guidance. In addition, an importer should now enter on the entry list certain origin information, as contained in the certificate of origin. The Rules of August 21, 2020 were notified to the Rules of the Administration of Rules of Origin and Origin, which entered into force on September 21, 2020. Importers and other interested parties were given 30 days to familiarize themselves with the new provisions. [1] The main purpose of these rules is to prevent ineligible entitlements to benefits under the Foregin trade agreements and thus protect the domestic industry in India. The requirements imposed by the rules are clearly a promotion of the Go Vocal For Local campaign, launched by the Indian government, for the stabilization of the domestic economy. India`s Finance Minister said: „Inappropriate claims for FTA benefits pose a threat to domestic industry.

Such imports require strict controls. In this context, appropriate provisions are introduced in the Customs Act of 1962. A comprehensive list of information on country of origin criteria, including regional value and product-specific criteria, has been established, which the importer must keep for a period of five years and submit it to the relevant delegate upon request. vii. Where an importer punishes the facts, has deliberately provided false information or has collaborated with the seller or any other person to benefit from an undue advantage of a trade agreement, he would be punishable under the customs law or other law in force, in addition to the non-election of his right to the preferential duty. The Rules of Origin and Trade Administration Rules, notified on 21 August 2020, 2020 (CAROTAR, 2020) will enter into force from 21 September 2020, after the expiry of the 30-day period for importers and other interested parties to familiarize themselves with the new provisions. The carotar, 2020 and the notified rules of origin in favour of a trade agreement provide, overall, the following reasons for the revision: v. Regardless of whether it is established that the products of an exporter or producer do not meet the criteria of origin under the rules of origin, the Chief Commissioner/Commissioner of Customs may refuse further requests for preferential duties for identical products imported by the same exporter or producer; Iii. Where an importer does not provide the information provided or the information and documents are considered insufficient to conclude that the origin criteria are met, the Indian customs authorities shall submit a verification proposal to the competent authorities of the trading partner in order to verify the authenticity or authenticity of the CoO and the information contained therein. . . .