CUSTOMS TARIFF RULES, 2009
(1) These rules may be called the Customs Tariff (Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of MERCOSUR Member States comprising the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Republica Oriental del Uruguay and the Republic of India) Rules, 2009 (hereinafter referred as the Rules).
(2) They shall come into force on the 1st day of June 2009.
For the purpose of these Rules:
(a) chapters, headings and subheadings mean the chapters, the headings and the subheadings (two, four and six digit codes respectively) used in the nomenclature which makes up the Harmonized System or HS;
(b) CIF price means the price paid to the exporter for the product when the goods pass the ships rail at the port of importation. The exporter pays the costs and freight necessary to deliver the goods to the named port of destination;
(c) classification refers to the classification of a product or material under a particular subheading of the HS at 6 digit level and of the respective national tariff schedules of the Signatory Parties at the 8 digit level.
(d) customs value means the value as determined in accordance
For the purpose of implementing the Preferential Trade Agreement between the Governments of MERCOSUR Member States comprising the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Republica Oriental del Uruguay and the Republic of India (hereinafter referred as the Agreement), the following goods shall be considered as originating from a Signatory Party:
(a) The goods wholly produced or obtained in the territory of the Signatory Party as defined in Rule 5 of these Rules;
(b) The goods not wholly produced in the territory of the Signatory Party, provided that the said products are eligible under Rule 4 or Rule 6 read with Rule 7 of these Rules.
2. The provisions of paragraph 1 above excludes used or second hand goods.
Goods originating in any of the Signatory Party when used as an input for a finished product in another Signatory Party, shall be considered originating in the latter.
The following shall be considered as wholly produced or obtained in the territory of any of the Signatory Party:
(a) mineral products extracted from the soil or subsoil of any of the Signatory Parties, including its territorial seas, continental shelf or exclusive economic zone;
(b) plants1 and plant products grown, harvested, picked or gathered there including in its territorial seas, continental shelf or exclusive economic zone;
(c) live animals2 born and raised there, including by aquaculture;
(d) products from live animals as in (c) above;
(e) animals and products thereof obtained by hunting, trapping, collecting, fishing and capturing there; including in its territorial seas, continental shelf or in
1.- For the purpose of Rule 3(1) (b) the products are considered to be originating when the CIF value of all non -originating materials from countries other than the Signatory Parties and/or of undetermined origin used in its manufacture does not exceed 40% of the FOB value of the final product and the final process of manufacture is performed within the territory of the exporting Signatory Party subject to fulfillment of the provisions of Rule 7.
2.-For the purposes of determining the CIF value of non - originating materials for countries without a coastline, the first seaport or inland waterway port located in any of the other Signatory Parties, through which those non - originating materials have been imported shall be considered as port of destination.
3- The value of the non-originating materials, parts or produce shall be:
In the case of the products which have non-originating materials, the following operations, inter alia, shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Rule 6 are satisfied:
(a) preserving operations to ensure that the products remain in good condition during transport and storage such as aeration, drying, refrigeration, immersion in salty or sulphured water or in water added with other substances, extraction of damaged parts and similar operations;
(b) Dilution in water or in any other substance which does not substantially alter the product characteristics;
(c) Simple operations such as removal of dust, sifting, screening, sorting, classifying, grading, matching, washing, painting, husking, stoning of
1. Accessories, spare parts or tools delivered with the good that form part of the goods standard accessories, spare parts, or tools, shall be considered as originating if the good originates and shall be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification, provided that:
a) the accessories, spare parts or tools are not invoiced separately from the good, notwithstanding they are detailed separately in the invoice;
b) the quantities and value of the accessories, spare parts or tools are customary for the good.
2. Each Signatory Party shall provide that if a good is subject to a value added requirement, the value of accessories, spare parts, or tools shall be taken into account as originati
1. For the purpose of establishing if a product is originating when in its manufacture are utilized originating and non-originating fungible materials, mixed or physically combined, the origin of such materials can be determined by any of the inventory management methods applicable in the Signatory Party.
2. Where considerable cost or material difficulties arise in keeping separate stocks of originating and nonoriginating materials which are identical and interchangeable, the customs authorities may, at the written request of those concerned, authorise the accounting segregation method to be used for managing such stocks.
3. This method must be able to ensure that the number of products obtained which could be considered as originating is the same as that which would have been obtained if there had been physical segregation of the stocks
Sets, as defined in General Rule 3 of the Harmonised System, shall be regarded as originating when all component products are originating. Nevertheless, when a set is composed of originating and non originating goods, the set as a whole shall be regarded as originating, provided that the CIF value of the non originating goods utilized in the composition of the set does not exceed 15% per cent of the FOB price of the set.
1. The packages and packing materials for retail sale, when classified together with the packaged product, according to General Rule 5 (b) of the Harmonised System, shall not be taken into account for considering whether all non-originating materials used in the manufacture of a product fulfil the criterion corresponding to a change of tariff classification of the said product.
2. If the product is subject to value added criterion, the value of the packages and packing materials for retail sale shall be taken into account in its origin assessment, in case they are treated as being one for customs purposes with the goods in question.
The containers and packing materials exclusively used for the transport of a product shall not be taken into account for determining the origin of any good, in accordance with General Rule 5 (b) of the Harmonized System.
1. Neutral elements or Indirect materials means goods used in the production, testing or inspection of goods but not physically incorporated into the goods, or goods used in the maintenance of buildings or the operation of equipment associated with the production of goods, including:
(a) energy and fuel;
(b) plant and equipment;
(c) tools, dies, machines and moulds;
(d) parts and materials used in the maintenance of plant, equipment and buildings;
(e) goods which do not enter into the final composition of the product;
(f) gloves, glasses, footwear, clothing, safety equipment, and supplies;
(g) equipment, devices, and
In order for the originating goods or products to benefit from the preferential treatment provided for under the Agreement, they shall be transported directly between the exporting Signatory Party and the importing Signatory Party. The goods or products are transported directly provided:
1. They are transported through the territory of one or more Signatory Parties;
2. They are in transit through one or more territories of third countries, with or without trans-shipment or temporary warehousing in such territories, under the surveillance of the customs authorities therein, provided that:
i) the transit entry is justified for geographical reasons or by consideration related exclusively to transport requirements;
ii) they are not intended for trade, c
1. The Origin Certificate is the document that certifies that goods fulfil the origin requirements as set out in these Rules so that they can benefit from the preferential tariff treatment as foreseen in the Agreement. The said Certificate is valid for only one importing operation concerning one or more goods and its original copy shall be included in the documentation to be presented at the customs authorities of the importing Signatory Party.
2. The issue and control of Origin Certificates shall be under the responsibility of a Government office in each Signatory Party. The Origin Certificates shall be directly issued by those authorities or through delegation as referred to in Rule 17(5).
3. The Origin Certificate shall be issued in accordance with the sample certificate of origin and notes for completion thereof, attached as Appendix
1. If the traded good is invoiced by an operator from a third country, be it a Signatory Party or not, for the issue of the Origin Certificate, the final producer or exporter of the good shall present the first commercial invoice and a corresponding sworn declaration by the final producer certifying that the goods fulfil the origin criteria of these Rules. Value addition carried out only in the Signatory Party shall be taken into account for calculation of local value addition.
2. The producer or the exporter from the country of origin shall inform in the respective Origin Certificate, in the box reserved for observations, that the good corresponding to the said Certificate shall be invoiced by a third operator, reproducing the following data from the commercial invoice issued by this operator: name, address, country, number and date.
3.
1. For the issue of an Origin Certificate, the final producer or exporter of the good shall present the corresponding commercial invoice and a request containing a sworn declaration by the final producer certifying that the goods fulfil the origin criteria of these Rules, as well as the necessary documents supporting such a declaration. The said sworn declaration shall contain at least the following data:
a) Individuals name or company name;
b) Legal domicile;
c) Description of the good to be exported and its tariff classification;
d) FOB value of the goods to be exported;
e) Information relating to the good to be exported, which must indicate:
i) materials, co
1. Regardless of the presentation of an origin certificate in accordance with the Rules, the competent authorities of the importing Signatory Party may, in the cases of reasonable doubt, request to the competent authorities of the exporting Signatory Party any additional information necessary for the verification of the authenticity of a certificate, as well as the veracity of the information contained therein. This shall not preclude the application of the respective national legislation relating to breach of customs law.
2. The compliance with the request for additional information according to this Rule shall only be made with reference to the registers and documents available in Government offices or in the institutions entitled to issue origin certificates. Copies of the documentation necessary for the issuing of origin certificates can be made available. This Rule, however, d
The competent authorities from the exporting Signatory Party shall provide the requested information according to Rule 18 within thirty (30) days, from the date of the receipt of the request.
The information obtained under the provisions of Rule 19 shall be confidential in character and shall be utilized with a view to clarifying the matter under investigation by the competent authorities of the importing Signatory Party as well as during the investigation and legal proceedings.
In the cases in which the information requested under Rule 18 is not provided within the deadline established in Rule 19 or is insufficient to clarify any doubt concerning the origin of the good, the competent authorities of the importing Signatory Party may initiate an investigation on the matter within sixty (60) days, from the date of the request for the information. If this information is satisfactory, the said authorities shall release the importer from the guarantee referred to in Rule 18 within thirty (30) days.
1. During the period of investigation, the competent authorities of the importing Signatory Party shall not suspend new importing operations relating to identical goods from the same exporter or producer. However, they may request a guarantee, in any of its modalities, in order to preserve fiscal interests, as a precondition for the completion of the importation operations.
2. The guarantee amount, whenever it is requested, shall be according to Rule 18.
The competent authorities of the importing Signatory Party shall immediately notify the importer and the competent authorities of the exporting Signatory Party of the initiation of the origin investigation, in accordance with the Rule 24.
During the investigation proceedings, the competent authorities of the importing Signatory Party may:
a) request, through the competent authorities of the exporting Signatory Party, new information, as well as any copy of the documentation in possession of the person who issued the origin certificate under investigation, according to Rule 18, which may be deemed necessary for verifying the authenticity of the said certificates and the veracity of the information contained therein. In such a request, the number and the date of the issue of the origin certificate under investigation shall be indicated.
b) for the purposes of verification of the contents of the local or regional added value, require access to any information or documentation necessary for establishing the CIF value of the non-originating goods used in the production of the
The competent authorities of the exporting Signatory Party shall provide the information and documentation requested according to Rule 24 (a) and (b), within thirty (30) days from the date of the receipt of the request.
In relation to the proceedings as foreseen in Rule 24, the competent authorities of the importing Signatory Party may request the competent authority of the exporting Signatory Party the participation or advice of specialists concerning the matter under investigation.
In the cases in which the information or documentation requested to the competent authorities of the exporting Signatory Party is not produced within the stipulated deadline, or if the answer does not contain enough information or documentation for determining the authenticity or veracity of the origin certificate under investigation, or still, if the producers do not agree to the visit, the competent authorities of the importing Signatory Party may consider that the products under investigation do not fulfil the origin requirements, and may, as a result, deny preferential tariff treatment to the products mentioned in the origin certificate under investigation according to Rule 21, and thus conclude such investigation.
1. The competent authorities of the importing Signatory Party shall engage to conclude the investigation in a period not more than ninety (90) days, from the date of the receipt of the information requested in accordance with Rule 24.
2. If it is considered that new investigative actions or the presentation of more information are necessary, the competent authorities of the importing Signatory Party shall communicate the fact to the competent authorities of the exporting Signatory Party. The term for the execution of such new actions or for the presentation of additional information shall be not more than ninety (90) days, from the date of the receipt of the information, according to Rule 24.
3. If the investigation is not concluded within ninety (90) days from its initiation, the importer shall be released from the payment of the guaran
1. The competent authorities of the importing Signatory Party shall inform the importers and the competent authorities of the exporting Signatory Party of the conclusion of the investigation process, as well as the reasons that led to its decision.
2. The competent authority of the importing Signatory Party shall grant the competent authority of the exporting Signatory Party the access to the investigation files, in accordance with its legislation.
During the investigation process, occasional modifications in the manufacturing conditions made by the companies under investigation shall be taken into account.
Once the investigation concludes in favour of the qualification of the origin of the goods and the validity of the origin criterion contained in the origin certificate, the importer shall be released from the guarantees requested in Rule 18 and 22, within no more than thirty (30) days.
1. Once the investigation establishes the non-qualification of the origin criterion of the goods contained in the origin certificate, the duties shall be levied as if the goods were imported from third countries and the sanctions foreseen in this Agreement and/or the ones foreseen in the legislation in force in each Signatory Party shall be applied.
2. In such a case, the competent authorities of the importing Signatory Party may deny preferential tariff treatment to new imports relating to identical good from the same producer, until it is clearly demonstrated that the manufacturing conditions we-e modified so as to fulfil the origin requirements of the Rules of Origin of these Rules.
3. Once the competent authorities of the exporting Signatory Party has sent the information demonstrating that the manufacturing conditions were modified,
1. A Signatory Party may request another Signatory Party to investigate the origin of a good imported by the latter from other Signatory Party, whenever there are well-founded reasons for suspecting that its products undergo competition from imported products with preferential tariff treatment which do not fulfill the conditions laid down under these Rules.
2. For such purposes, the competent authorities of the Signatory Party requesting the investigation shall bring to the notice of the authorities of the importing Signatory Party the relevant information within forty five (45) days, from the date of the request. Once this information is received, the importing Signatory Party may initiate the proceedings established in these Rules, giving notice of this to the Signatory Party that requested the initiation of the investigation.
The proceedings of verification and control of origin as foreseen in these Rules may also apply to the goods already cleared for home consumption.
Within sixty (60) days, from the receipt of the communication as provided in Rule 29 or sub-rule (3) of Rule 32, in case the measure is inconsistent, the exporting Signatory Party may request for consultation to the Joint Administration Committee of this Agreement, stating the technical and legal reasons that would indicate that the measure adopted by the competent authorities of the importing Signatory Party are not consistent with these Rules; and/or request a technical advice with the aim of establishing whether the goods under investigation fulfil the origin rules of this Agreement.
The time periods set in these Rules shall be calculated on a consecutive day basis as from the day following the fact or event which they refer to.
1. The provisions set out in these Rules shall also apply to Special Economic Zone and the competent authorities in each Signatory Party will be responsible for the control of origin with respect to activities covered under this Rule.
2. The MERCOSUR States and India shall take all necessary steps to ensure that products, traded under cover of a certificate of origin which in the course of transport use a Special Economic Zone situated in their territory, are not substituted by other goods and do not undergo handling other than normal operations designed to prevent their deterioration.
3. When goods originating in the Signatory Parties are imported into a Special Economic Zone under cover of the origin certificate mentioned in Rule 17 and are fractioned, the certifying offices or institutions mentioned in Rule 17(5) may issue a new origi
APPENDIX-I
Form Agreed upon by India and Mercosur for the origin Certificate
CERTIFICATE OF ORIGIN
1. Producer or exporter
(name, address, country) Reference No. of Certificate
India-Mercosur PTA
2. Importer
(name, address, country) Stamp, address and name of the Certifying Authority
3. Port of shipment 4. Country of destination
5. Commercial invoice
Number Date / /
6. N.o
Order 7. tariff item
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