INDIA - Despite the onerous requirements and compliances under the CAROTAR, the overriding effect to Rules of Origin of the respective agreement shall always give an edge to and protect the rights of the importer.
Preferential Trade Agreements are a widely practiced norm in international trade policy in recent times; India too, has its share of PTAs. For example, in 2009, India signed the ASEAN FTA with 10 nations including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam which entitled exports from such countries to India at a preferential rate of duty. But there are increasing trade irregularities and undue claims of Preferential Tariff Treatment by fraud and manipulation of country of origin (CoO) criteria. In order to check the undue claims under PTT and to bring in the requirement for stringent checks on imports of goods especially focusing on the CoO, the Government of India notified the CAROTAR Rules 2020 which came into effect on September 21, 2020.