Duty concession on import from asean country

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Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2012 India has signed the Free Trade Agreement (FTA) with ASEAN countries to facilitate trade. It provides both countries to allow their importers / exporters to import / export their product under concessional duty or with no duties levied on it.

We manufacture industrial cables for which we require copper, covered under CTH: 7408.22 on which 5% BCD is levied currently. In case it is imported from Vietnam, is there any concession in import duty. Please suggest Customs notification permitting such concession / remission.

Rama Krishnan

Rama Krishnan (Expert)
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09 November 2012 PL REFER CUSTOMS NOTIFICATION 127/2011, SERIAL NO. 981. IF IMPORTED FROM VIETNAM THE BCD GET REDUCED TO 2%.

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Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2012 Any specific documentation to take care of?? I know, Cert of Origin will be essential. Does it have go through any legalization process at origin??? Thanks for suggesting the Notif No. to review... shall let you know??

Best Regards -
Partha P Bhattacharya

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Rama Krishnan

Rama Krishnan (Expert)
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09 November 2012
1. YOU NEED TO GET COO IN ORIGINAL 3 COPIES AND SURRENDER TO CUSTOMS FOR GETTING DUTY BENEFIT UNDER FTA.

2. YOU DON'T NEED TO DO ANYTHING APART FROM THIS , YOU SUPPLIER HAS TO APPROCH THEIR CHAMBER OF COMMERCE AND PROVE THE LOCALISATION CRITERIA , ON FULLFILLING THE CRITERIA ONLY THE COO WILL BE ISSUED.

3. LOCALISAION CRITERIA UNDER ASEAN FTA IS AS BELOW ( ASEAN Material Cost + Direct Labour & Overhead + Other Cost + Profit should not be less than 35% of FOB Export Price)

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Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2012 Thanks for the reply. COO is fine, no questions about it. And the Chamber of Commerce generally would not contest.

The crux of the matter on the question is... who certifies that the localization criteria has been met / complied with?? Is there a supplementary certificate issued by any inspection agency? Who is it / are they ???

Regards - PP BHATTACHARYA

Rama Krishnan

Rama Krishnan (Expert)
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12 November 2012 TO THE BEST OF MY KNOWLEDGE THERE NO OTHER AGENCIES WHO CERTIFIES THE LOCALISATION CRITERIA . YOU NEED TO SUBMIT A BILL OF MATERIALS ( BOM) ALONG WITH SUPPORTING PROOF TO CHAMBER OF COMMERCE IN THAT COUNTRY, THEY WILL CHECK THE DOCUMENTS THROUGHLY FOR THE FIRST TIME AND APPROVE LOCALISATION CRITERIA AND ISSUE COO. FOR THE FIRST TIME IT MAY TAKE 2 WEEKS, THEREAFTER THE PROCESS IS SIMPLE AND FAST AS YOU NEED NOT HAVE TO PROVE THE SAME FOR EVERY SHIPMENTS( SAME ITEMS) HOPE MATTER STAND CLARIFIED.

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