In an effort to curb custom duty evasion and other misuse of free-trade agreements (FTAs), custom authorities will be closely monitoring imports coming in from countries that India has FTAs with, starting the 21st of September.
Import of white goods, set top boxes, cameras, electronic goods and incense sticks will be monitored under the new rules of origin verification norms.
Compliance to the new rules of origin verification norms will be compulsory for availing FTA duty benefits and the customs department will seek all supporting documents for imports under FTAs.
According to sources in the finance ministry, India's trade deficit with ASEAN nations has risen from $5 billion in 2010 to $22 billion currently.
The trade gap with Singapore has also widened significantly; it currently stands at $4 billion. So how will the new rules of origin verification attempt to turn this situation around? To discuss this, Shereen Bhan spoke with Sharad Kumar Saraf President of FIEO, Najib Shah Former Chairman of CBIC and Pankaj Mohindroo Chairman of ICEA.
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