CUSTOMS TARIFF (DETERMINATION OF ORIGIN OF OTHER PREFERENTIAL AREAS) RULES, 1977
1. Short title and commencement.-
(1) These rules may be called the Customs Tariff (Determination of Origin of Other
Preferential Areas) Rules, 1977.
(2) They shall come into force on the date of their publication in the Official
Gazette.
2. Application.-
These rules shall apply to articles consigned from other preferential area.
3. Definitions.-
In these rules, unless the context otherwise requires,-
(a) "Act" means the Customs Tariff Act, 1975 (51 of 1975);
(b) "country" means a country or territory declared to be other
preferential area;
(c) "expenditure on material" means the cost of the manufacture of the
material at the factory or works, including containers but excluding royalties;
(d) "factory or works cost" means the cost of production to the manufacturer at the
factory or works and shall include the value of containers and other forms of interior
packing ordinarily sold with an article when it is sold in retail, but shall not
include the manufacturer"s or exporter"s profit or the cost of exterior packing,
carriage to port and other charges incidental to the export of the article subsequent
to its manufacture;
(e) "other preferential area" means any country or territory declared to be other
preferential area under sub-section (3) of Section 4 of the Act;
(f) words and expressions used in these rules and not defined herein but defined in the
Customs Act, 1962 (52 of 1962), shall have the meanings, respectively, assigned to
them in that Act.
4. Produce or manufacture of a country.-
No article shall be deemed to be the produce or manufacture of a country, unless the proper
officer of customs is satisfied -
(a) that the article has been consigned from such country; and
(b) (i) where the article is unmanufactured, that it has been grown or produced in such country;
(ii) where the article is manufactured -
(A) that it has been wholly manufactured in such country from material
produced in such country; or
(B) that it has been wholly manufactured in such country from unmanufactured
materials; or
(C) that it has been partially manufactured in such country, and that the
final process of manufacture has been performed in such country, and that
the expenditure on material produced and labour performed in such country
in the manufacture of the artcle is, in the case of an article specified
in the Schedule to these rules, not less than one-half, and in the case of
other articles, not less than one-quarter, of the factory or works cost of
the article in its finished state :
Provided that where the articles are consigned from other preferential area the material
produced and labour performed in any other preferential area may be reckoned as though it were
material produced or labour performed in the preferential area from which the goods were
consigned.
Explanation:-For the purposes of clause (b)(ii)(C), the final process of
manufacture shall not be deemed to have been performed in any country in which no process
other than the process of mixing, bottling, labelling, packing into retail containers or
the like has been performed, but where such process as aforesaid has been performed in the
country in which the final process of manufacture has been performed, nothing herein shall
render the cost of such process ineligible for inclusion in the computation of the fraction of
the factory or works cost of the article in its finished state which represents expenditure on
material produced and Labour performed in that country.
5. Imports by post.-
No claim that articles are chargeable with a preferential rate of duty shall be considered by
the Assistant Collector of Customs in respect of articles imported by post, unless at the time
of arrival in India, such articles are covered by a declaration as to the country of origin
entered in the customs declaration form or (in the absence of such a form), on the wrapper of
the package.
SCHEDULE
(See Rule 4)
1. Sewing and knitting machines (and parts thereof) to be worked by manual labour or
which require for their operation less than one-quarter of one brake-horse-power.
2. Cycles (other than motor cycles) imported entire or in section and parts and
accessories thereof, excluding rubber tyres and tubes.
3. Motor cars including taxi cabs and articles (other than rubber tyres and tubes)
adapted for use exclusively as more parts and accessories thereof.
4. Motor omni-buses; chassis of motor omni-buses, motor vans and motor lorries; and parts
of mechanically propelled vehicles and accessories excluding rubber tyres and tubes.
5.Motor cycles and motor scooters and articles (other than rubber tyres and tubes) adapted for use as parts and accessories thereof.
DECLARATION OF PREFERENTIAL AREAS
In exercise of the powers conferred by sub-section (3) of section 4 of the Customs Tariff Act, 1975 (51 of 1975), and in supersession of the notification of the Government of India in the Department of Revenue and Banking No. 352-Customs, dated the 2nd August, 1976, the Central Government hereby declares the countries specified in the Table below to be "preferential areas" for the purposes of said section.
Table
| Sl.No. | Countries |
|---|
| (1) | (2) |
|---|
| 1. | Mauritius |
| 2. | Seychelles |
| 3. | Tonga |