submit proof of Origin instead of certificate of orogin for preferential import tariff, says FinMin
Extract
from the article:
The Finance Ministry’s recent notification signals a notable
shift in India’s trade and customs regulatory landscape. It mandates that
importers, aiming to avail preferential tariff treatments, submit a “proof of
origin” rather than the traditional “certificate of origin.” This procedural
revamp is meticulously designed to tighten the screws on imports, particularly
those originating from China but routed through third countries to mask their
true origin. By demanding more rigorous and verifiable evidence of origin, the
government intends to curb circumvention practices that exploit loopholes in
trade agreements and customs procedures.
This development should be viewed in context with India’s
broader agenda to bolster domestic manufacturing and reduce reliance on imports
that undercut local industries. The substitution of the certificate with proof
of origin is not a mere bureaucratic tweak; it reflects a strategic emphasis on
supply chain transparency and trade integrity. This change enhances the Customs
Department's ability to scrutinize shipments and verify the authenticity of
origin claims, providing an evidential basis to deny preferential tariff
benefits when provenance is dubious. Ultimately, this move could reshape import
patterns, incentivize compliance, and act as a bulwark against undervalued or
illicitly routed goods flooding the Indian market.
My
Take:
A. Autobiography
of an Appliance
Years ago, I discoursed on the growing chorus of voices demanding clarity on
the “Country of Origin” labels on products sold in India, especially
highlighting that consumers remain largely oblivious about the true provenance
of goods—many being Chinese imports disguised or masked in e-commerce
ecosystems. As I wrote then, “Trader’s body CAIT has urged Commerce and
Industry Minister Piyush Goyal to make it mandatory for every e-commerce portal
to mention ‘country of origin’ on each product sold at their platforms, so that
buyers can make an informed decision.”
When I reflect upon the Finance Ministry’s recent move to
replace certificates with proof of origin, it crystallizes the very issues I
sounded alarms about years ago. The nebulousness of origin, compounded by
complex global supply chains and transshipment strategies, demands greater
scrutiny and transparency. This policy shift validates my early insights and
underscores the need for consumers and regulators alike to pierce through the
smokescreen veiling product origins. To me, this is less about administrative
fine-tuning and more about reclaiming the narrative and economic sovereignty
that begins with knowing where your goods truly come from.
B. Origin
of Everything
In this earlier blog, I delved into the labyrinthine complexities of defining
“country of origin” in a hyper-globalized world, especially when raw materials,
intermediate assembly, and final manufacturing are scattered across diverse
geographies. I wrote, “Entire cycle of Designing / Manufacturing / Marketing /
Selling / Order-taking / Delivering / After-sales Servicing / Logistics /
Collecting Payments / etc, will get spread so thinly across Countries /
Continents / Companies / Individuals, that it will become next to impossible to
keep track of ‘WHO’ is adding ‘WHAT’ value to the process, and ‘WHEN’, and from
‘WHERE’!”
The Finance Ministry’s insistence on “proof of origin”—a
term that presumably entails deeper verification and substantiation—reflects an
acknowledgment of this Gordian knot. It is as if they are wielding a sharper
sword to untie the bundle of evasions and deceptions that have long plagued
import verification. This meticulous approach to provenance verification could
indeed serve as a blueprint to cut through the entanglements of globalized
production chains and ensure that preferential duties are dispensed only when
deserved. From my vantage point, this policy shift aligns perfectly with my
anticipation of the need for more forensic-trade governance.
Call to
Action:
To the Finance Ministry and Customs Authorities: I urge you to operationalize
this new “proof of origin” framework with comprehensive guidelines and robust
enforcement mechanisms. Transparent criteria, digitized verification protocols,
and collaboration with global origin verification bodies will be paramount to
prevent circumvention and to build trust among stakeholders.
To Indian importers and traders: It is critical to
proactively align your documentation and supply chain disclosures with these
evolving regulations. Embedding transparency at every stage will not only
safeguard preferential tariff benefits but also enhance your credibility in a
market increasingly sensitive to origin authenticity.
To consumers and industry advocates: Continue to demand and
support policies that enhance origin clarity and promote domestic manufacturing
resilience. Consumer awareness is a powerful force for change.
With regards,
Hemen Parekh
No comments:
Post a Comment