India’s CBIC notifies rules of origin for India-Australia ECTA

Current Affairs

  • India’s Central Board of Indirect Taxes and Customs (CBIC) recently notified the rules of origin related to the eligibility requirement to claim preferential customs duty on trade in goods under the India-Australia Economic Cooperation and Trade Agreement (ECTA), which will come into effect from December 29 this year. The rules will also come into effect on that date.
  • ROO are the criteria prescribed to determine national origin of an imported product in a country.
  • It helps to prevent misuse of FTAs by determining whether enough value addition took place in partner country for import to qualify as originating from there.
  • General Agreement on Tariffs and Trade (GATT) has no specific rules governing determination of country of origin of goods in international commerce.
  • Australia is the 17th largest trading partner of India and India is Australia’s 9th largest trading partner. India-Australia bilateral trade for both merchandise and services is valued at $ 27.5 billion in 2021

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