Bonanza for Singapore imports – Massive exemptions and new ROO
New Rules Of Origin have been notified for Singapore and three notifications issued to give full, 10% and 5% exemption to a large number of goods imported from Singapore.
Singapore is basically a trading economy and this move is not exactly going to flood Indian markets with foreign goods as the exemption is applicable only to goods produced in Singapore.
Under the Rules of origin notified for Singapore to be effective from 1st August, 2005, the preferential treatment will be eligible for products wholly produced or obtained in Singapore and for products not wholly produced or obtained subject to certain conditions.
Products will be considered as originating from Singapore even if they are not wholly manufactured there if
The total value of imported raw materials for the manufacture of these goods does not exceed 60% of the FOB value of the final product. This means that there has to be a minimum 40% value addition.
The product is classified in a different heading from the heading in which the raw materials were classified. This difference has to be at the 4 digit level of the HSN.
However operations for preservation, removal of dust, change in packing, fixing marks, simple assembling or disassembling, slaughter of animals etc., will not be considered as manufacture.
The importer shall produce the certificate of origin issued by a notified authority in Singapore. But consignments in India will not be detained if the Customs has any doubts about the certificate. The certificate of origin will be valid for 12 months; it will be given in A4 size paper in English.
The government has also issued operational certification procedures and certain commodities specific rules.
Notification Nos. 73, 74 & , and Dated 22-07-2005