- CBIC issued customs procedure for concessional tariff benefits under India-UK FTA from July 15
- Importers must provide authenticated Origin Declaration to claim preferential tariff treatment
- Transitional relief allows eligible consignments in transit or under customs control to claim benefits
In a move to facilitate the implementation of the India-UK Free Trade Agreement, the Central Board of Indirect Taxes and Customs (CBIC), has issued the customs procedure for claiming concessional tariff benefits, effective from July 15.
Under the notified framework, importers seeking concessional duty benefits under the FTA will be required to furnish an authenticated Origin Declaration issued in accordance with the agreement.
ALSO READ | Mahadev Betting App Case: ED Arrests Businessman Vikas Garg After Rs 940-Crore Assets Seizure
The declaration will serve as proof that the imported goods satisfy the prescribed rules of origin, making them eligible for preferential tariff treatment.
The CBIC has also provided transitional relief for importers by extending the benefits to eligible consignments that are already in transit or remain under customs control on the date the agreement comes into force.
Such shipments can claim reduced customs duties, provided they comply with the conditions laid down under the trade pact.
In another significant clarification, the tax authority said goods lying in bonded warehouses before the implementation date will also qualify for preferential tariff treatment.
However, the benefit will be available only if all FTA requirements, including compliance with the rules of origin and submission of the necessary documentation, are fulfilled before the goods are cleared for home consumption.
The notification is aimed at ensuring a smooth operational rollout of the India-UK FTA by providing clarity on documentation and customs procedures for importers.
ALSO READ | From Cheaper Whisky To Auto: How India-UK FTA Impacts Your Wallet Starting Tomorrow
To facilitate implementation, the CBIC said a detailed trade advisory will be issued on the ICEGATE portal, outlining the operational process for claiming benefits, documentation requirements and system-related procedures.
The India-UK FTA is expected to enhance bilateral trade by lowering tariff barriers and providing greater market access for businesses in both countries.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.