Context: TheCustoms (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020), aim to protect the domestic industry from misuse of FTAs.
- The new rules will be a change from the present ones by which a “country of origin” certificate, issued by a notified agency in the country of export, is produced by the importer, who has no additional obligation even though he claims substantial benefit.
- Now, importers need to furnish proof of 35 per cent value addition in goods from the country of origin to claim duty concession under free trade agreements (FTAs).
- FTAs were expected to be mutually beneficial to all partner countries, but this was not the case.
- While India’s exports to FTA partners remain almost flat, imports have risen rapidly, widening the trade deficit.