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29 March 2022 This document is the European Union's (EU) proposal for a legal text on a Protocol concerning the Rules of Origin and the Origin Procedures in the EU-India trade agreement. It has been tabled for discussion with India. The actual text in the final agreement will be a result of negotiations between the EU and India. DISCLAIMER : The EU reserves the right to make subsequent modifications to this text and to complement its proposals at a later stage, by modifying, supplementing or withdrawing all, or any part, at any time. PROTOCOL 1 Rules of origin and origin procedures INDEX SECTION A : RULES OF ORIGIN Articles 1. Definitions 2. Requirements for originating products 3. Wholly obtained products 4. Tolerances 5. Insufficient production 6. Cumulation of origin between the Parties 7. Unit of qualification 8. Accessories, spare parts and tools 9. Packing materials and containers for shipment 10. Packing materials and containers for retail sale 11. Sets 12. Neutral elements 13. Accounting segreg ation for fungible materials 14. Returned products 15. Non alteration 16. Prohibition of Drawback of, or Exemption from, Customs Duties | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 2 SECTION B: ORIGIN PROCEDURES Articles 17. Claim for preferential treatment 18. Time of the claim for preferential treatment 19. Statement on origin 20. Discrepancies 21. Importer's knowledge 22. Record keeping requirements 23. Waiver of procedural requirements 24. Verification 25. Administrative cooperation 26. Denial of preferential treatment 27. Confidentiality 28. Administrative measures and sanctions SECTION C: FINAL PROVISIONS Articles 29. Ceuta and Melilla 30. Review of rules of origin 31. Explanatory Notes 32. Transitional provisions for products in transit or storage ANNEXES ANNEX I to Protocol 1: Introductory notes to the list in Annex II ANNEX II to Protocol 1: Product specific rules of origin ANNEX III to Protocol 1: Statement on origin ANNEX IV to Protocol 1: Explanatory Notes JOINT DECLARATION concerning the Principality of Andorra JOINT DECLARATION concerning the Republic of San Marino | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 3 SECTION A RULES OF ORIGIN Article 1 Definitions For the purposes of this Protocol: (a) 'Chapters', 'headings' and 'sub-headings' mean the two digit chapters, the four digit headings and the six-digit sub-headings used in the nomenclature which makes up the Harmonised Commodity Description and Coding System, referred to in this Protocol as 'the Harmonised System' or 'HS'; (b) 'classified' refers to the classification of a product or material under a particular Chapter, heading or sub-heading of the Harmonised System; (c) 'customs authority' means: (i) in India, [INDIA TO COMPLETE] (ii) in the EU, the services of the European Commission responsible for customs matters and the customs administrations and any other authorities responsible in the Member States of the EU for the application and enforcement of customs legislation; (d) 'customs value' means the value as determined in accordance with the 1994 Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade (WTO Agreement on Customs Valuation); (e) 'consignment' means products which are ei ther sent simultaneously from one consignor to one consignee or covered by a single transport document covering their shipment from the consignor to the consignee or, in the absence of such a document, by a single invoice; (f) 'exporter' means a person, locate d in a Party, who, in accordance with the requirements laid down in the laws and regulations of that Party, exports or produces the originating product and makes out a statement on origin; (g) 'EXW' or 'ex-works price' means: (i) the price of the product paid or payable to the producer in whose undertaking the last working or processing is carried out, provided that the price includes the value of all the materials used and all other costs incurred in the production of the product, minus any internal taxes which a re, or may be, repaid when the product obtained is exported; or | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 4 (ii) if there is no price paid or payable or if the actual price paid does not reflect all costs related to the production of the product which are actually incurred in the production of the produ ct, the value of all the materials used and all other costs incurred in the production of the product in the exporting Party: (a) including selling, general and administrative expenses, as well as profit, that can reasonably be allocated to the product; and (b) excluding the cost of freight, insurance, all other costs incurred in transporting the product and any internal taxes of the exporting Party which are, or may be, repaid when the product obtained is exported. (iii)For the purposes of point (i), where the last production has been contracted to a producer, the term 'producer' in point (i) refers to the person who has employed the subcontractor. (h) 'FOB price' or 'FOB value' refers to the price actually paid or payable for the product to the manufacturer plus transp ort and insurance costs. The price includes the value of all the materials used in the manufacture, other costs effectively incurred by the manufacturer and all inland transport and insurance costs necessary to bring the product onto the carrier at the na med port of exportation regardless the mode of shipment, not including any internal taxes which are or may be, repaid when the product obtained is exported; (i) 'importer' means a person who imports the originating product and claims preferential tariff treat ment for it; (j) 'material' means any substance used in the production of a product, including any ingredients, raw materials, components or parts; (k) 'non-originating' material means material that does not qualify as originating under this Protocol, including a material whose originating status cannot be determined; (l) 'product' means the product resulting from the production, even if it is intended for later use as a materials in the production of another product; (m) 'production' means any kind of working or processin g including assembly; (n) 'territories' includes territorial sea; (o) 'value of non-originating materials' means the value of the non-originating materials used in the production of the product, which is its customs value at the time of importation, including fre ight, insurance if appropriate, packing and all other costs incurred in transporting the materials to the importation port in the Party where the producer of the product is located; where the value of the non-originating materials is not known and cannot b e ascertained, the first ascertainable price paid for the non-originating materials in the European Union or in India is used; the value of the non-originating materials used in the production of the product may be calculated on the basis of the weighted a verage cost formula or other inventory valuation method under accounting principles which are generally accepted in the Party. | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 5 Article 2 Requirements for originating products 1. For the purpose of applying the preferential tariff treatment by a Party to the originating products of the other Party in accordance with this Agreement, provided that the products satisfy all other applicable requirements of this Protocol, the following products shall be considered as originating in the other Party: (a) products wholly obtained in that Party within the meaning of Article 3; (b) products produced in that Party exclusively from materials originating in that Party; and (c) products produced in that Party incorporati ng non-originating materials provided they satisfy the requirements set out in Annex II, 2. If a product has acquired originating status, the non-originating materials used in the production of that product shall not be considered as non-originating when tha t product is incorporated as a material in another product. 3. The acquisition of originating status shall be fulfilled without interruption in India or in the European Union. Article 3 Wholly obtained products 1. The following shall be considered as wholl y obtained in a Party: (a) mineral products extracted or taken from its soil or from its seabed; (b) plants and vegetable products grown or harvested there; (c) live animals born and raised there; (d) products obtained from live animals raised there; (e) products obtained from slaughtered animals born and raised there; (f) products obtained by hunting or fishing conducted there; (g) products obtained from aquaculture there if aquatic organisms, including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants a re born or raised from seed stock such as eggs, roes, fry, fingerlings, larvae, parr, smolts or other immature fish at a post-larval stage by intervention in the | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 6 rearing or growth processes to enhance production such as regular stocking, feeding or protect ion from predators; (h) products of sea fishing and other products taken from the sea outside any territorial sea by a vessel of a Party; (i) products made aboard of a factory ship of a Party exclusively from products referred to in (h); (j) products extracted from th e seabed or subsoil outside any territorial sea provided that the Party or person of that Party has the right to exploit or work that seabed or subsoil; (k) waste and scrap resulting from production operations conducted there; (l) waste and scrap derived from used products collected there, provided that those products are fit only for the recovery of raw materials; (m) products produced there exclusively from the products specified in (a) to (l). 2. The terms 'vessel of a Party' and 'factory ship of a Party' in p oints (h) and (i) of paragraph 1 mean a vessel and a factory ship which: (a) is registered in a Member State of the European Union or in India; (b) sails under the flag of a Member State of the European Union or of India; and (c) meets one of the following conditions: (i) it is at least 50 per cent owned by nationals of a Member State of the European Union or of India; or (ii) it is owned by legal person(s) which each: (a) have their head office and main place of business in a Member State of the European Uni on or in India; and (b) are at least 50 per cent owned by public entities or legal persons of a Member State of the European Union or of India. | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 7 Article 4 Tolerances 1. If a product does not satisfy the requirements of Annex II due to the use of a non-originating material in its production, that product shall nevertheless be considered as originating in a Party, provided that: (a) the total weight of non-originating materials used in the production of products classified under Chapters 2 and 4 to 2 4 of the Harmonised System, other than processed fishery products of Chapter 16, does not exceed 10 % of the weight of the product; (b) the total value of non-originating materials for all other products, except for products falling within Chapters 50 to 6 3 of the Harmonised System, does not exceed 10 % of the ex-works price of the product or 10% of the fob price of the product; or (c) for a product classified under Chapters 50 to 63 of the Harmonised System, the tolerances set out [in Notes 6 and 7 of Par t I of Annex I] apply. 2. Paragraph 1 does not apply if the value or weight of non-originating materials used in the production of a product exceeds any of the percentages for the maximum value or weight of non-originating materials as specified in the re quirements set out in Annex II. 3. Paragraphs 1 and 2 shall not apply to products wholly obtained in a Party within the meaning of Article 3. If Annex II requires that the materials used in the production of a product are wholly obtained, paragraphs 1 and 2 o f this Article apply. Article 5 Insufficient production 1. Notwithstanding point (c) of Article 2(1), a product shall not be considered originating in a Party if the production of the product in that Party consists only of one or more of the following operations conducted on non-originating materials: (a) preserving operations such as drying, freezing, keeping in brine and other similar operations where their sole purpose is to ensure that the products remain in good condition during transport and stora ge; (b) breaking-up or assembly of packages; (c) washing, cleaning; removal of dust, oxide, oil, paint or other coverings; | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 8 (d) ironing or pressing of textiles and textiles articles; (e) simple painting and polishing operations; (f) husking and partial or total milling of rice; polishing and glazing of cereals; bleaching of rice; (g) operations to colour or flavour sugar or form sugar lumps; partial or total milling of sugar in solid form; (h) peeling, stoning and shelling of fruits, nuts and vegetables; (i) sharpening, simple grinding or simple cutting; (j) simple sifting, screening, sorting, classifying, grading, matching including the making-up of sets of articles; (k) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations; (l) affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging; (m) simple mixing of products, whether or not of different kinds; mixing of sugar with any material; (n) simple addition of water or dilution with water or another substance that does not materially alter the characteristics of the product, or dehydration or denaturation of products; (o) simple assembly of parts of articles to constitute a com plete article or disassembly of products into parts; (p) slaughter of animals. 2. For the purpose of paragraph 1, operations shall be considered simple if neither special skills nor machines, apparatus or equipment especially produced or installed are needed for carrying out those operations. Article 6 Cumulation of origin between the Parties 1. A product originating in a Party shall be considered as originating in the other Party if that product is used as a material in the production of another produ ct in that Party. 2. Paragraph 1 does not apply if the production carried out in the other Party does not go beyond the operations referred to in Article 5(1). | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 9 Article 7 Unit of qualification 1. For the purpose of this Protocol, the unit of qualification shall be the particular product which is considered as the basic unit when classifying the product under the Harmonised System. 2. For a consignment consisting of a number of identical products c lassified under the same heading of the Harmonised System, each individual product shall be taken into account when applying the provisions of this Protocol. Article 8 Accessories, spare parts and tools 1. Accessories, spare parts, tools and instructional or other information materials shall be regarded as one product with the piece of equipment, machine, apparatus or vehicle in question if they: (a) are classified and delivered with, but not invoiced separately from, the product; and (b) are of the types, quantities and value which are customary for that product. 2. Accessories, spare parts, tools and instructional or other information materials referred to paragraph 1 shall be disregarded in determining the origin of the product, except for the purposes of calculating the value of non-originating materials if a product is subject to a maximum value of non-originating materials as set out in Annex II. Article 9 Packing materials and containers for shipment Packing materials and containers for shipment that are used to protect a product during transportation shall be disregarded in determining whether that product is originating. Article 10 | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 10 Packing materials and containers for retail sale Packaging materials and containers in which the produc t is packaged for retail sale, if classified with the product, shall be disregarded in determining the origin of the product, except for the purposes of calculating the value of non-originating materials if the product is subject to a maximum value of non-originating materials in accordance with Annex II. Article 11 Sets Sets, as defined in General Rule 3 for the Interpretation of the Harmonised System, shall be considered as originating in a Party if all of their components are originating. If a set is composed of originating and non-originating components, the set as a whole shall be considered as originating in a Party if the value of the non-originating components does not exceed 15 per cent of the ex-works price of the set. Article 12 Neutral elemen ts In order to determine whether a product is originating in a Party, it shall not be necessary to determine the origin of the following elements, which might be used in its production: (a) fuel, energy, catalysts and solvents; (b) plant, equipment, spare parts and materials used in the maintenance of equipment and buildings; (c) machines, tools, dies and moulds; (d) lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings; (e) gloves, gl asses, footwear, clothing, safety equipment and supplies; (f) equipment, devices and supplies used for testing or inspecting the product; and (g) other materials used in the production which are not incorporated into the product nor intended to be incorpo rated into the final composition of the product. | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 11 Article 13 Accounting segregation for fungible materials 1. Originating and non-originating fungible materials s hall be physically segregated during storage in order to maintain their originating and non-originating status. 2. For the purpose of paragraph 1, 'fungible materials' means materials that are of the same kind and commercial quality, with the same technical and physical characteristics, and that cannot be distinguished from one another for origin purposes. 3. Notwithstanding paragraph 1, originating and non-originating fungible materials may be used in the production of a product without being physi cally segregated during storage if an accounting segregation method is used. 4. The accounting segregation method referred to in paragraph 3 shall be applied in conformity with a stock management method under the accounting principles that are generally ac cepted in the Party. 5. The accounting segregation method shall be any method that ensures that at any time no more materials receive originating status than would be the case if the materials had been physically segregated. Article 14 Returned products If a product originating in a Party exported from that Party to a third country returns to that Party, it shall be considered as non-originating product unless the returning product: (a) is the same as that exported; and (b) has not undergone any operatio n other than that necessary to preserve it in good condition while in that third country or while being exported. | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 12 Article 15 Non alteration 1. Originating products declared for home use in the importing Party shall not have, after exportation from the exporting Party and prior to being declared for home use, been altered, transformed in any way or subjected to operations other than to preserve it in good condition or than adding or affixing marks, labels, seals or any other documentation to ensure compl iance with specific domestic requirements of the importing Party. 2. Storage or exhibition of originating products may take place in a third country, provided that those products are not cleared for home use in that third country. 1. 3. The splitting of cons ignments of originating products may take place in a third country provided that those originating products are not cleared for home use in that third country. 2. 4. In case of doubt as to whether the requirements provided for in paragraphs 1 to 3 are compli ed with, the customs authority of the importing Party may request the importer to provide evidence of compliance, which may be given by any means, including contractual transport documents such as bills of lading or factual or concrete evidence based on ma rking or numbering of packages or any evidence related to the product itself. Article 16 Prohibition of Drawback of, or Exemption from, Customs Duties 1. Non-originating materials used in the production of products originating in the European Union or in India for which a claim for preferential tariff treatment is made in accordance with Section B [Origin procedures] shall not be subject to drawback of, or exemption from, customs duties of whatever kind. 2. Paragraph 1 shall apply to any arrangement for refund, remission or non-payment, partial or complete, of customs duties or charges having an equivalent effect, applicable in the European Union or in India t o materials used in the production, if such refund, remission or non-payment applies, expressly or in effect, when products obtained from the said materials are exported and not when they are retained for home use there. | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 13 SECTION B ORIGIN PROCEDURES Article 17 Claim for preferential tariff treatment 1. The importing Party, on importation, shall grant preferential tariff treatment to a product originating in the other Party, within the meaning of this Protocol, on the basis of a claim by the importer for preferential tariff treatment. The importer shall be responsible for the correctness of the claim for preferential tariff treatment and for the compliance with the requirements provided for in this Protocol 2. A claim for preferential tariff treatment shall be based on: (a) a statement on origin that the product is originating, made out by the exporter; or (b) the importer's knowledge that the product is originating. 3. The importer making the claim for preferential tariff treatment based on a statement on origin as referred to in point (a) of paragraph 2 shall keep the statement on origin and, when required by the customs authority of the importing Party, shall provide a copy thereof to that customs authority. Article 18 Time of the claim for preferential tar iff treatment 1. A claim for preferential tariff treatment and the basis for that claim as referred to in Article 17(2) shall be included in the customs import declaration in accordance with the laws and regulations of the importing Party. 2. By the way of derogation from paragraph 1 of this Article, if the importer did not make a claim for preferential tariff treatment at the time of importation, the importing Party shall grant preferential tariff treatment and repay or remit any excess customs duty pai d provided that: (a) the claim for preferential tariff treatment is made no later than three years after the date of importation, or such longer time period as specified in the laws and regulations of the importing Party; | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 14 (b) the importer provides the basi s for the claim as referred to in Article 17(2); and (c) the product would have been considered originating and would have satisfied all other applicable requirements within the meaning of Section A of this Protocol if it had been claimed by the importer a t the time of importation. The other obligations applicable to the importer under Article 17 remain unchanged. Article 19 Statement on origin 1. A statement on origin shall be made out by an exporter of a product on the basis of information demonstrating that the product is originating, including, information on the originating status of materials used in the production of the product. The exporter shall be responsible for the correctness of the statement on origin and the information provided. 2. A state ment on origin shall be made out using the text in one of the language versions set out in Annex III to this Protocol on an invoice or on any other document that describes the originating product in sufficient detail to enable the identification of that product. The exporter shall be responsible for providing sufficient detail to allow the identification of the originating product. The importing Party shall not require the importer to submit a translation of the statement on origin. 3. A statement on origin shall be valid for twelve months from the date it was made out. 4. A statement on origin may apply to: (a) a single shipment of one or more products imported into a Party, or; (b) multiple shipments of identical products into a Party within the period specified in the statement on origin, which shall not exceed twelve months. 5. If, at the request of the importer, unassembled or disassembled products within the meaning of General Rule 2(a) of the Harmonised System that fall within Sections XV to XXI of the Harmonised System are imported by instalments, a single statement on origin for such products may be used in accordance with the requirements laid down by the customs authorities of the importing Party. 6. For the purpose of Paragraph 4, 'identical p roducts' means products which correspond in every respect to those described in the product description. The product description on the document used for making out a statement on origin for multiple shipments must be precise enough to clearly identify tha t product but also the identical products to be subsequently imported under cover of that statement. | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 15 Article 20 Discrepancies The customs authority of the importing Party shall not reject a claim for preferential tariff treatment due to minor errors or discrepancies in the statement on origin, or for the sole reason that an invoice was issued in a third country. Article 21 Importer's knowledge For the purposes of a claim for preferential tariff treatment that is made under point (b) of Article 17(2), t he importer's knowledge that a product is originating in the exporting Party shall be based on information demonstrating that the product is originating and satisfies the requirements provided for in this Chapter. Article 22 Record keeping requirements 1. For a minimum of three years after the date on which the claim for preferential tariff treatment was made pursuant to Article 17(2)(a) or Article 18(2), an importer making a claim for preferential tariff treatment for a product imported into the importi ng Party shall keep: (a) if the claim was based on a statement on origin, the statement on origin made out by the exporter; or (b) if the claim was based on the importer's knowledge, all records demonstrating that the product satisfies the requirements to obtain originating status. 2. An exporter who has made out a statement on origin shall, for a minimum of four years after the statement on origin was made out, keep a copy the statement on origin and all other records demonstrating that the product satisf ies the requirements to obtain originating status. 3. The records to be kept in accordance with this Article may be held in electronic format. Article 23 | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 16 Waiver of procedural requirements 1. By way of derogation from Articles 17 [Claim for Preferential Tariff Treatment] to 21 [Importer's knowledge], provided that the product has been declared as meeting the requirements of this Protocol and the customs authority of the importing Party has no doubt as to the veracity of that declaration, the importing Par ty shall grant preferential treatment to products contained in low value consignments: (a) sent in a small package from private persons to private persons; and (b) forming part of a travellers' personal luggage. 2. The following products are excluded from the application of paragraph 1 of this Article: (a) products, the importation of which forms part of a series of importations that may reasonably be considered to have been made separately for the purpose of avoiding the requirements of Article 17; (b) a product imported by way of trade; the imports which are occasional and consist solely of products for the personal use of the recipients or travellers or their families are not to be considered as imports by way of trade if it is evident from the natur e and quantity of the products that no commercial purpose is in intended; and (c) products, the total value of which exceeds EUR 500 in the case of low value consignments sent from private person to private person, or EUR 1 200 in the case of products form ing part of a traveller's personal luggage, or a higher value limit set by each Party in accordance with their domestic legislation. The Parties shall exchange information regarding those limits. The amounts to be used in a given national currency shall b e the equivalent in that currency of the amounts expressed in euro as at the first working day of October. The exchange rate amounts shall be those published for that day by the European Central Bank, unless a different amount is communicated to the Europe an Commission by 15 October, and shall apply from 1 January the following year. The European Commission shall notify India of the relevant amounts. 3. The importer shall be responsible for the correctness of the declaration and for the compliance with the requirements provided for in this Protocol. The record-keeping requirements set out in Article 22 shall not apply to the importer under this Article. Article 24 Verification | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 17 1. The customs authority of the importing Party may conduct a verification whether a product is originating or the other requirements of this Protocol are satisfied, on the basis of risk assessment methods, which may include random selection. Such verification may be conducted by means of a request for information to the importer who made the claim referred to in Article 17, at the time the import declaration is submitted, before the release of the products, or after the release of the products. 2. The information requested pursuant to paragraph 1 shall cover no more than the following elements: (a) if the claim was based on a statement on origin, that statement on origin; (b) information pertaining to the fulfilment of origin criteria, which is; i. where the origin criteria is 'wholly obtained', the applicable category (such as har vesting, mining, fishing, etc. ) and the place of production; ii. where the origin criteria is based on change in tariff classification, a list of all the non-originating materials including their tariff classification (in 2, 4 or 6-digit format, depending on t he origin criteria); iii. where the origin criteria is based on a value method, the value of the final product as well as the value of all the non-originating materials used in the production of that product; iv. where the origin criteria is based on weight: the we ight of the final product as well as the weight of the relevant non-originating materials used in the final product; v. where the origin criteria is based on a specific production process, a description of that specific process. (c) information relating to the co mpliance with the non-alteration rule established by Article 15. (d) information relating to the compliance with the provision of Article 16. 3. When providing the requested information, the importer may add any other information that it considers relevant for the purpose of verification. 4. If the claim for preferential tariff treatment is based on a statement on origin, the importer shall provide that statement on origin but may reply to the customs authority of the importing Party that the importer is not in a position to provide information referred to in point (b) paragraph 2 of this Article 5. If the claim for preferential tariff treatment is based on the importer's knowledge, after having first requested information in accordance with paragraph 1 of t his Article, the customs authority of the importing Party conducting the verification may request the importer to provide additional information if that customs authority considers that additional information is necessary in order to verify the originating status of the product or whether the other requirements of this Protocol are satisfied. The customs | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 18 authority of the importing Party may request the importer for specific documentation and information, if appropriate. 6. If the customs authority of the im porting Party decides to suspend the granting of preferential tariff treatment to the product concerned while awaiting the results of the verification, the release of the products shall be offered to the importer subject to appropriate precautionary measur e, including guarantees. Any suspension of preferential tariff treatment shall be terminated as soon as possible after the customs authority of the importing Party has ascertained the originating status of the product concerned, or the fulfilment of the ot her requirements of this Protocol. Article 25 Administrative cooperation 1. In order to ensure the proper application of this Protocol, the Parties shall cooperate, through the customs authority of each Party, in verifying whether a product is originati ng and is in compliance with the other requirements provided for in this Protocol. 2. If the claim for preferential tariff treatment was based on a statement on origin, as appropriate after having first requested information in accordance with Article 24(1)[Verification], the customs authority of the importing Party conducting the verification may also request information from the customs authority of the exporting Party within a period of two years after the date on which the claim for preferential tariff treatment was made pursuant to Article 17(2)(a) or Article 18(2), if the customs authority of the importing Party conducting the verification considers that additional information is necessary in order to verify the originating status of the product or to verify that the other requirements provided for in this Protocol have been met. The request for information shall include the following elements: (a) the statement on origin; (b) the identity of the customs authority issuing the request; (c) the name of the exporter; (d) the subject and scope of the verification; and (e) any relevant documentation. In addition, the customs authority of the importing Party may request the customs authority of the exporting Party to provide specific documentation and infor mation, where appropriate, including demonstration that the provision of Article 16 has been respected. 3. The customs authority of the exporting Party may, in accordance with its laws and regulations, request documentation or examination by calling for an y evidence, or by | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 19 visiting the premises of the exporter, to review records and observe the facilities used in the production of the product. 4. Without prejudice to paragraph 5, the customs authority of the exporting Party receiving the request referred to in paragraph 2 shall provide the customs authority of the importing Party with the following information: (a) the requested documentation, where available; (b) an opinion on the originating status of the product; (c) the description of the product that is subject to examination and the tariff classification relevant to the application of this Protocol; (d) a description and explanation of the production process that is sufficient to support the originating status of the product; (e) information on the mann er in which the examination of the product was conducted; and (f) supporting documentation, where appropriate. 5. The customs authority of the exporting Party shall not provide the information referred to in points (a), (d) and (f) of paragraph 4 of this Article to the customs authority of the importing Party if that information is deemed confidential by the exporter. 6. Each Party shall notify the other Party of the contact details of the customs authorities and shall notify the other Party of any change to those contact details within thirty days after the date of the change. Article 26 Denial of preferential tariff treatment 1. Without prejudice to paragraph 3, the customs authority of the importing Party may deny preferential tariff treatment if: (a) within three months after the date of a request for information pursuant to Article 24(1) [Verification]: (i) no reply has been provided by the importer; (ii) where the claim for preferential tariff treatment was based on a statement on origin, no stateme nt on origin has been provided; or (iii) where the claim for preferential tariff treatment was based on the importer's knowledge, the information provided by the importer is inadequate to confirm that the product is originating; | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 20 (b) within three months after the date of a request for additional information pursuant to Article 24(5) [Verification]: (i) no reply has been provided by the importer; or (ii) the information provided by the importer is inadequate to confirm that the product is originating; (c) within ten months after the date of a request for information pursuant to Article 25(2) [Administrative Cooperation]: (i) no reply has been provided by the customs authority of the exporting Party; or (ii) the information provided by the customs authority of the exporting Party is inadequate to confirm that the product is originating; 2. The customs authority of the importing Party may deny preferential tariff treatment to a product for which an importer claims preferential tariff treatment where the impor ter fails to comply with requirements of this Protocol other than those relating to the originating status of the products. 3. If the customs authority of the importing Party has sufficient justification to deny preferential tariff treatment in accordance with paragraph 1 of this Article, in cases where the customs authority of the exporting Party has provided an opinion pursuant to point (b) of Article 25(4) [Administrative Cooperation] confirming the originating status of the products, the customs authori ty of the importing Party shall notify the customs authority of the exporting Party of its intention to deny the preferential tariff treatment within two months after the date of receipt of that opinion. If such notification is made, consultations shall be held at the request of either Party, within three months after the date of the notification. The period for consultation may be extended on a case-by-case basis by mutual agreement between the customs authorities of the Parties. The consultation may take place in accordance with the procedure set by the [relevant body of the Agreement]. Upon the expiry of the period for consultation, if the customs authority of the importing cannot confirm that the product is originating, it may deny the preferential tariff treatment if it has a sufficient justification for doing so and after having granted the importer the right to be heard. However, when the customs authority of the exporting Party confirms the originating status of the product and provides justification for such conclusion, the customs authority of the importing Party shall not deny preferential tariff treatment to a product on the sole ground that Article 25(5) has been applied [administrative cooperation]. 4. In all cases, the settlement of differences between the importer and the customs authority of the importing Party shall be under the laws of the importing Party. Article 27 | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 21 Confidentiality 1. Each Party shall maintain, in accordance with its laws and regulations, the confidentiality of informatio n provided to it by the other Party, pursuant to this Protocol, and shall protect that information from disclosure. 2. Information obtained by the authorities of the importing Party may only be used by such authority for the purposes of this Protocol. The use of information collected pursuant to this [Protocol] in any administrative, judicial, or quasi-judicial proceedings instituted for failure to comply is allowed pursuant to a notification to the person or Party who provided the information in advance. 3. Confidential business information obtained from the exporter by the competent authority of the exporting Party or by importing Party through the application of Articles 24 (Verification) and 25 (Administrative Cooperation) shall not be disclosed unless o therwise provided for in this Protocol. 4. Information obtained by the customs authority of the importing Party pursuant to this Protocol shall not be used by the importing Party in any criminal proceedings carried out by a court or a judge, unless permiss ion to use such information is requested by and provided to the importing Party through the diplomatic channels or other channels established in accordance with the applicable laws and regulations of the exporting Party. Article 28 Administrative measures and sanctions Each Party shall ensure the effective enforcement of this Protocol. Each Party shall ensure that the competent authorities are able to impose administrative measures, and, where appropriate, sanctions, in accordance with its laws and regula tions, on any person who draws up a document, or causes a document to be drawn up, which contains incorrect information that was provided for the purpose of obtaining a preferential tariff treatment to a product, who does not comply with the requirements s et out in Article 22 [Record Keeping Requirements], or who does not provide the evidence, or refuses to submit to a visit, as referred to in of Article 25(3) [Administrative Cooperation]. | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 22 SECTION C FINAL PROVISIONS Article 29 Ceuta and Melilla 1. For the purpose of this Protocol, in the case of the European Union, the term “Party” or “European Union” does not include Ceuta and Melilla. 2. Products originating in India, when imported into Ceuta and Melilla, shall in all respects be subject to the s ame customs treatment under this Agreement, as that which is applied to products originating in the customs territory of the European Union under Protocol 2 of the Act of Accession of the Kingdom of Spain and the Portuguese Republic to the European Commun ities. India shall grant to imports of products covered by this Agreement and originating in Ceuta and Melilla the same customs treatment as that which is granted to products imported from and originating in the European Union. 3. The rules of origin and o rigin procedures referred to in this Protocol apply mutatis mutandis to products exported from India to Ceuta and Melilla and to products exported from Ceuta and Melilla to India. 4. Ceuta and Melilla shall be considered as a single territory. 5. The exp orters shall enter “India” or “Ceuta and Melilla” in field 3 of the text of the statement on origin, depending on the origin of the product. 5. The customs authority of the Kingdom of Spain shall be responsible for the application and implementation of thi s Protocol in Ceuta and Melilla. Article 30 Amendment to this Protocol and its Annexes [The relevant body of the Agreement] may modify by decision the provisions of this Protocol and of its Annexes. Article 31 | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 23 Explanatory Notes The Parties may agree on Explanatory Notes regarding the interpretation and application of this Protocol within the [relevant body of the Agreement]. Article 32 Transitional provisions for products in transit or storage 1. The Parties shall apply the provisions of this Agreemen t to an originating product, which, on the date of entry into force of this Agreement: (a) is in transit from the exporting Party to the importing Party; or (b) has not been cleared for home use in the importing Party; and otherwise complies with t he provisions of this Chapter. 2. A product referred to in paragraph 1, is subject to an importer making a claim for preferential tariff treatment as referred to in Article 17 (Claim for Preferential Tariff Treatment), within 12 months of the entry into force of this agreement | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 24 ANNEX I INTRODUCTORY NOTES TO PRODUCT-SPECIFIC RULES OF ORIGIN | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 25 ANNEX II [PRODUCT SPECIFIC RULES] | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 26 ANNEX III TEXT OF THE STATEMENT ON ORIGIN A statement on origin shall be made out using the text set out below in one of the following linguistic versions and in accordance with the laws and regulations of the exporting Party. If the statement on origin is handwritten, it shall be written in ink in printed characters. The statement on origin shall be drawn up in accordance with the respective footnotes. The footnotes do not have to be reproduced. [TO INSERT STATEMENT ON ORIGIN IN ALL EU OFFICIAL LANGUAGES] English version (Period: from............... to............(1)) The exporter of the products covered by this document (Exporter Reference No......... (2)) declares that, except where otherwise clearly indicated, these products are of............ preferential origin(3). .................................................................................................................. (Place and date(4)) ............................................................................................................... (name of the exporter(5)) ............................................................................................................... (1) If the statement on origin is completed for multiple shipments of identical originating products within the meaning of point (b) of Article 19(4), indica te the period for which the statement on origin will apply. That period shall not exceed 12 months. All importations of the product must occur within the period indicated. Where a period is not applicable, the field can be left blank. (2) Indicate the refe rence number through which the exporter is identified. For the European Union exporter, this will be the number assigned in accordance with the laws and regulations of the European Union. For India, this will be [INDIA TO COMPLETE]. The Parties shall notif y each other the method used for identification of the exporters. (3) Indicate the origin of the product: the European Union or India. (4) The 'Place' may be omitted if the information is contained on the document itself. The 'Date' may be omitted if the statement on origin is made out at the same date as the issue of the document. (5) Insofar that the name of the exporter is not mentioned in the document itself. The statement on origin does not need to be signed by the exporter. | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 27 ANNEX IV EXPLANATORY NOTE S [Place Holder] | x.2 Rules of origin - EU proposal1.pdf |
Without prejudice 28 JOINT DECLARATION CONCERNING THE PRINCIPALITY OF ANDORRA 1. Products originating in the Principality of Andorra falling within Chapter 25 to 97 of the Harmonised System shall be accepted by India as originating in the European Union within the meaning of this Agreement, provided that the customs union established by Council Decision 90/680/EEC of 26 November 1990 on the conclusion of an agreement in the form of an exchange of letters between the European Economic Community and the Principali ty of Andorra remains in force. 2. Protocol 1 shall apply mutatis mutandis for the purpose of defining the originating status of products referred to in paragraph 1 of this Joint Declaration. JOINT DECLARATION CONCERNING THE REPUBLIC OF SAN MARINO 1. Products originating in the Republic of San Marino shall be accepted by India as originating in the European Union within the meaning of this Agreement, provided that these products are covered by the Agreement on Cooperation and Customs Union between the European Economic Community and the Republic of San Marino, done at Brussels on 16 December 1991, and that the latter remains in force. 2. Protocol 1 shall apply mutatis mutandis for the purpose of defining the originating status of the products referred t o in paragraph 1 of this Joint Declaration. | x.2 Rules of origin - EU proposal1.pdf |