2.21.1

The preferential arrangement/schemes under which India is receiving tariff preferences for its exports are Generalised System of Preferences (GSP), Global System Of Trade Preferences (GSTP), SAARC Preferential Trading Agreement (SAPTA), Bangkok Agreement and India–Srilanka Free Trade Agreement (ISLFTA). These arrangements/ agreements prescribe Rules of origin which have to be fulfilled for the exports to be eligible for the tariff preference.

The authorised agencies shall provide services relating to issuance of certificate of origin, including details regarding the rules of origin, list of items covered by an agreement, extent of tariff preference, verification and certification of eligibility etc. Export Inspection Council ( EIC) is the sole agency authorised to print blank certificates. The authorised agencies may charge a fee, as approved by Ministry of Commerce and Industry, for services rendered.

Generalised System of Preferences (GSP)

(a) GSP is a non contractual instrument by which industrialised (developed) countries unilaterally and on the basis of non reciprocity extend tariff concessions to developing countries. The following countries extend tariff preferences under their GSP Scheme.

United States, European Union, Canada, Australia (only to LDCs) New Zealand

Japan Norway Switzerland Bulgaria Poland

Hungary Belarus Slovakia Russia Czech Republic

GSP schemes of these countries details the sectors/ products and tariff lines under which these benefits are available, besides the conditions and the procedures governing the benefits. These schemes are renewed and modified from time to time. Normally the Customs of GSP offering countries require information in Form ‘A’ (prescribed for GSP Rules Of Origin) duly filled by the exporters of the beneficiary countries and certified by authorised agencies. List of agencies authorised to issue GSP Certificate of Origin is given in Appendix-35.

Global System of Trade Preference (GSTP)

(b) Under the agreement establishing Global System of Trade Preference (GSTP), trade concessions are exchanged among developing countries, who have signed the agreement. Presently, there are 46 member countries of GSTP and India has exchanged tariff concessions with 12 countries on a limited number of products. Export Inspection Council (EIC) is the sole agency authorised to issue Certificate of Origin under GSTP.

SAARC Preferential Trading Agreement (SAPTA)

(c) The Agreement establishing SAPTA was signed by the seven SAARC countries namely India, Pakistan, Nepal, Bhutan, Bangladesh, Sri Lanka and Maldives. The list of agencies, which are authorised to issue Certificate of Origin under SAPTA are notified under Appendix-35A.

Bangkok Agreement

(d) The Bangkok agreement is a preferential trading arrangement designed to liberalise and expand trade in goods progressively in the Economic and Social Commission for Asia and Pacific (ESCAP) region through such measures as the relaxation of tariff and non tariff barriers and use of other negotiating techniques. The agencies authorised to issue Certificate of Origin under Bangkok agreement are listed in Appendix-35A.

India-Sri Lanka Free Trade Agreement (ISLFTA)

(e) A Free Trade Agreement (FTA) between India and Sri Lanka was signed on 20th December, 1998. The agreement was operationalised in March, 2000 following notification of the required Customs tariff concessions by the Government of Sri Lanka and India in February, and March, 2000 respectively. Export Inspection Council is the sole agency to issue the Certificate of Origin under ISLFTA.

India Afghanistan Preferential Trade Agreement

(f) A Preferential Trade Agreement between the Transitional Islamic State of Afghanistan and Republic of India was signed on 6th March, 2003 and was operationalised with the issuance of the Customs Notification No. 76/2003 dated 13th May, 2003. Export Inspection Council is the sole agency to issue the Certificate of Origin under India Afghanistan Preferential Trade Agreement.

(Above (f) has been added vide PN. No. 11/2003, Dt. 30/05/2003)

(Please refer Cir. No. 28/2003, Dt. 19/02/2004 for Placement of quantity of Raw Sugar from the freesale quota of 2003-04 season for export of preferential Raw Cane Sugar)

(Please refer Cir. No. 03/2003, Dt. 12/05/2003 for Preferential quota to EU for the year, 2003-2004.)

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