Govt defines 'proof of origin' for trade to boost ease of doing business

The government on Monday defined the 'proof of origin' for trade purposes to promote ease of doing business and prevent the possibility of misuse of trade pacts.

To seek duty concessions, an importer has to furnish proof or a 'certificate of origin' of a product from the FTA (free trade agreement) partner.

According to the circular of the Department of Revenue, proof of origin means a certificate or declaration issued in accordance with a trade agreement certifying that the goods fulfil the country of origin criteria. 

Certificate of origin is a key document required for exports to those countries with which India has trade agreements. An exporter has to submit the certificate at the landing port of the importing country. The document is important to claim duty concessions under free trade agreements. This certificate is essential to prove where the goods come from.

Commenting on the move, Apparel Export Promotion Council (AEPC) Secretary General Mithileshwar Thakur said the customs circular puts in place a well-defined mechanism and a Standard Operating Procedure for seamless verification of the authenticity of the certificate of origin.

"This will lead to removal of the element of uncertainty and bring in simplification and transparency while simultaneously putting a robust mechanism in place to prevent the possibility of misuse of origin criterion," Thakur said.