World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Reply: The ACP is an equivalent of the WCO's AEO programme.

The importers with clean compliant track record are identified by this programme and their imports are exempted from normal customs control measures. Presently, 279 importers avail of this facility and they contribute to nearly 13% of the total imports. The imports of ACP clients are exempted from document verification (assessment) and goods verification (examination).

The importers desirous of availing the facility as "accredited clients" are required to apply for registration. Importers meeting the qualifying criteria are eligible under the programme. Secretariat's report at page 37 provides the list of qualifying criteria. Customs Circular Nos. 42/2005 dated 24.11.2005 and 29/2010 dated 20.08.2010 provide the details of the programme as also the qualifying criteria (may be viewed at www.cbec.gov.in).

China 26:

REPORT BY THE SECRETARIAT: SECTION III: TRADE POLICIES AND PRACTICES BY MEASURE: (2) MEASURES DIRECTLY AFFECTING IMPORTS: Paragraph 22:

"The Central Board of Excise and Customs is authorized, by notification in the Gazette of India, to fix 'tariff values' (reference prices) for any type of imported (exported) good."

Question 26: Please explain the consistency between such practice and Article 1.1 of the Agreement on Customs Valuation.

Reply: Under Section 14(2) of the Customs Act, 1962 tariff values can be fixed for any class of imported goods or export goods having regard to the trend of value of such or like goods. Tariff values are currently being fixed only in respect of palm group of oils, crude soybean oil, poppy seeds and brass scrap. These values are fixed on the basis of prevailing international prices of these goods as observed from the various reputed international journals and other publications.

The tariff values are neither arbitrary or fictitious values nor minimum customs values. As these values on identified goods are computed based on the prevailing international prices, that is to say, the prices at which these goods are sold or offered for sale in the ordinary course of international trade under fully competitive conditions, such values are not inconsistent with Article VII of the GATT 1994. These values are in fact floating values and are frequently reviewed and revised so as to keep them closer to the transaction values under Article 1.1 of the CVA.

China 27:

REPORT BY THE SECRETARIAT: SECTION III: TRADE POLICIES AND PRACTICES BY MEASURE: (2) MEASURES DIRECTLY AFFECTING IMPORTS: Paragraph 26:

"India does not apply non preferential rules of origin."

Question 27:

Please clarify

(1) According to which rules does India issue the certificate of origin for MFN imports?