India-UK CETA: CBIC Eases Customs Compliance, Removes Routine Form-I Requirement for Imports

New Delhi, Sep 26 (KNN) The Central Board of Indirect Taxes and Customs (CBIC) has simplified documentation requirements for importers seeking preferential duty benefits under the India-UK Comprehensive Economic and Trade Agreement (CETA), reducing the paperwork required to establish the origin of goods.

Under the revised framework, importers can claim preferential tariff rates on eligible UK-origin goods based on a valid Origin Declaration issued by the exporter or producer in the UK.

The simplified process could particularly benefit micro, small and medium enterprise (MSME) importers that may have limited resources to manage detailed customs documentation and obtain additional information from overseas suppliers.

Form-I Not Required Routinely

The clarification aligns with CETA’s self-certification mechanism, under which UK exporters and producers can directly certify that their goods meet the agreement’s rules of origin without obtaining a separate certificate from a designated authority.

CBIC has clarified that importers will not ordinarily be required to submit Form-I under the Customs Administration of Rules of Origin under Trade Agreements (CAROTAR) along with the Bill of Entry.

Customs authorities may seek Form-I where they identify specific risks or concerns regarding the origin of imported goods.

Form-I contains information that Indian Customs may use to verify compliance with rules of origin, including details on production, materials and the origin criteria used to qualify for preferential tariffs.

Confidential Information Not Routinely Required

The clarification also means importers will not be required to routinely obtain confidential commercial or production information from UK exporters or producers.

CBIC has said that the non-furnishing of such information, by itself, will not be sufficient grounds to deny preferential tariff treatment.

The board has also provided clarity on the treatment of “identical goods” during origin verification, which could provide greater predictability in customs scrutiny.

Earlier, Form-I under CAROTAR, 2020, was required to be submitted with every Bill of Entry when importers claimed preferential treatment under the India-UK CETA.

(KNN Bureau)