Government Amends Customs Act to Facilitate Ease of Doing Business Through Self-Certification

The government has proposed an amendment to the Customs Act to enable self-certification for proving the origin of imported products from FTA nations, aligning with new trade agreements. This step aims to ease business processes and reduce administrative burdens on importers, promoting smoother trade operations.

The government has taken a significant step to simplify business processes by proposing self-certification for proof of origin of imported products from Free Trade Agreement (FTA) nations. This measure is designed to facilitate duty concessions and alleviate administrative hurdles for importers, aligning with the latest trade agreements.

Under current regulations, importers are required to submit a certificate of origin from the FTA partner country to avail of duty concessions. However, the latest Budget document reveals an amendment to Section 28DA of the Customs Act, allowing for self-certification as an acceptable proof of origin alongside traditional certificates.

Experts, including Ajay Srivastava from the think tank GTRI, note that while this change simplifies the process, importers must still comply with specific rules such as the CAROTAR to ensure that the goods meet origin criteria. Despite the flexibility offered by self-certification, importers are expected to exercise reasonable care in their documentation to maintain eligibility for tariff benefits.

(With inputs from agencies.)