Title
Comprehensive Economic and Trade Agreement between the United Kingdom of Great Britain and Northern Ireland and India
Preamble
The Government of the Republic of India (“India”) and the Government of the United Kingdom of Great Britain and Northern Ireland (“the United Kingdom”), hereinafter referred to individually as a “Party” or jointly as “the Parties”,
REINFORCING the longstanding bonds of friendship, cooperation and people-to-people linkages between them;
BUILDING on their longstanding and strong partnership based on common principles and values, and their important economic and trade relationship;
SEEKING to establish a clear, transparent, and predictable legal framework that supports further expansion of trade, to enhance the competitiveness of their economies, and to eliminate, and avoid the creation of, barriers between them;
ACKNOWLEDGING the important role and contribution of business in expanding trade between the Parties and the need to further promote and facilitate cooperation and utilisation of the greater business opportunities provided by this Agreement;
EMPHASISING the need to support the growth and development of small and medium-sized enterprises by enhancing their ability to participate in and benefit from the opportunities created by this Agreement;
RECOGNISING the importance of ensuring certainty and reducing barriers for service suppliers of the Parties by agreeing to commitments which will expand trade in services and facilitate temporary movement of natural persons between the Parties;
RECOGNISING the interaction between trade and innovation, and the contribution of both to economic growth, and seeking to expand and deepen their bilateral cooperation in this area;
NOTING the importance of facilitating new opportunities for businesses and consumers through digital trade;
AIMING to enhance participation in mutual recognition frameworks between the Parties or their authorities;
AFFIRMING the importance of development and inclusive economic growth, including in increasing the ability of forest dwellers in India, local communities and socially and educationally disadvantaged groups to access and fully benefit from the opportunities created by this Agreement, taking into account the context, challenges, and capabilities of each Party;
SEEKING to increase women’s access to and ability to fully benefit from the opportunities created by this Agreement, including with respect to women from rural areas, marginalised communities, and economically vulnerable backgrounds;
RESOLVING to promote transparency, good governance, and the rule of law;
RECOGNISING their right to regulate and to preserve the flexibility of the Parties to set legislative and regulatory priorities, in particular, the need to protect national security and legitimate public welfare objectives such as health (including public health), labour rights, safety, food security, environmental protection (including climate change) and conservation of exhaustible natural resources, integrity and stability of the financial system, and public morals, in accordance with the rights and obligations provided in this Agreement;
BUILDING on their respective rights and obligations under the WTO Agreement and other international agreements relating to matters covered by this Agreement to which both Parties are party;
ACKNOWLEDGING the need for a mutually beneficial trade agreement that encourages trade flows to the economic benefit of both the Parties;
AIMING to improve the efficiency and competitiveness of their economies and to expand trade between the Parties;
HAVE AGREED as follows:
Body
Chapter 1. INITIAL PROVISIONS AND GENERAL DEFINITIONS
Article 1.1. Establishment of a Free Trade Area
The Parties, consistent with Article XXIV of GATT 1994 and Article V of GATS, hereby establish a free trade area in accordance with the provisions of this Agreement.
Article 1.2. Relation to other International Agreements
1. The Parties affirm their existing rights and obligations with respect to each other under existing international agreements to which both Parties are party, including the WTO Agreement. For greater certainty, an affirmation of rights or obligations under another international agreement, or of commitments to implement another international agreement or a provision thereof, does not in itself lead to incorporation of those rights, obligations or commitments into this Agreement.
2. If a Party considers that a provision of this Agreement is inconsistent with a provision of another international agreement to which both Parties are party, the Parties shall, on request, consult with a view to reaching a mutually satisfactory solution. (1)
3. If any international agreement, or a provision therein, that has been referred to in this Agreement or incorporated into this Agreement is amended after entry into force of this Agreement, the Parties shall, at the request of either Party, consult on whether to amend this Agreement.
4. For as long as the Windsor Framework (2) is in force, (3) nothing in this Agreement shall preclude the United Kingdom from adopting or maintaining measures, or refraining from doing so, further to the Windsor Framework, and amendments thereto and subsequent agreements replacing parts thereof, provided that such measures, or the absence of such measures, are not used as a means of arbitrary or unjustified discrimination against the other Party or as a disguised restriction on trade.
5. On request of either Party, the Parties shall hold consultations, in relation to the effects of a measure described in paragraph (4) the United Kingdom has adopted, or absence thereof,4 on this Agreement and seek a mutually acceptable solution. (5)
Article 1.3. Laws and Regulations and Their Amendments
Where reference is made in this Agreement to laws or regulations of a Party, those laws or regulations shall be understood to include amendments thereto and successor laws or regulations, unless otherwise provided in this Agreement.
Article 1.4. General Definitions
For the purposes of this Agreement, unless otherwise provided in this Agreement:
“Agreement” means the Comprehensive Economic and Trade Agreement between the Government of the Republic of India and the Government of the United Kingdom of Great Britain and Northern Ireland;
“Agreement on Safeguards” means the Agreement on Safeguards, set out in Annex 1A to the WTO Agreement;
“Anti-Dumping Agreement” means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994, set out in Annex 1A to the WTO Agreement;
“central level of government” means:
(a) for India, the Government of the Union of India; and
(b) for the United Kingdom, His Majesty’s Government of the United Kingdom of Great Britain and Northern Ireland;
“customs authority” means:
(a) for India, the Central Board of Indirect Taxes and Customs or its successor; and
(b) for the United Kingdom, His Majesty’s Revenue and Customs or its successor and any other authority responsible for customs matters within its territory. For greater certainty, with respect to the provisions of this Agreement which apply to the Bailiwick of Guernsey, the Bailiwick of Jersey or the Isle of Man, “customs authority” shall also mean:
(i) with respect to the Bailiwick of Jersey, the Jersey Customs & Immigration Service or its successor;
(ii) with respect to the Bailiwick of Guernsey, Guernsey Customs & Excise or its successor; and
(iii) with respect to the Isle of Man, the Customs and Excise Division, Isle of Man Treasury or its successor;
“customs duty” includes any duty or charge of equivalent effect imposed on or in connection with the importation of goods, including any form of cess, surtax or surcharge in connection with such importation, but does not include:
(a) a charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994;
(b) a measure applied in accordance with the provisions of Articles VI or XIX of GATT 1994, the Anti-Dumping Agreement, the SCM Agreement or the Agreement on Safeguards, or a measure imposed in accordance with Article 22 of the Dispute Settlement Understanding by the WTO Dispute Settlement Body; or
(c) a fee or other charge in connection with importation commensurate with the cost of services rendered in conformity with Article VIII of GATT 1994;
“Customs Valuation Agreement” means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, set out in Annex 1A to the WTO Agreement;
“days” means calendar days, including weekends and holidays;
“Dispute Settlement Understanding” means the Understanding on Rules and Procedures Governing the Settlement of Disputes, set out in Annex 2 to the WTO Agreement;
“existing” means in effect on the date of entry into force of this Agreement;
“GATS” means the General Agreement on Trade in Services, set out in Annex 1B to the WTO Agreement;
“GATT 1994” means the General Agreement on Tariffs and Trade 1994, set out in Annex 1A to the WTO Agreement. For greater certainty, references in this Agreement to articles in GATT 1994 include the interpretative notes;
“good” means any merchandise, product, article, or material;
“goods of a Party” means domestic products as these are understood under GATT 1994 or such goods as the Parties may decide, and includes originating goods;
“government procurement” means the process by which a government obtains the use of or acquires goods or services, or any combination thereof, for governmental purposes and not with a view to commercial sale or resale or use in the production or supply of goods or services for commercial sale or resale;
“Harmonized System” or “HS” means the Harmonized Commodity Description and Coding System defined in the International Convention on the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, and legal notes, as adopted and implemented by the Parties in their respective laws;
“Joint Committee” means the Joint Committee established pursuant to Article 27.1 (Establishment of the Joint Committee – Administrative and Institutional Provisions);
“juridical person” means any entity duly constituted or otherwise organised under applicable law, whether for profit or otherwise, and whether privately-owned or government-owned, including any corporation, trust, partnership, joint venture, sole proprietorship, or association;
“measure” means any measure by a Party, whether in the form of law, regulation, rule, procedure, decision, administrative action or any other form;
“national” means:
(a) for India, natural persons having citizenship in India in accordance with its laws and regulations;
(b) for the United Kingdom, a British citizen in accordance with its applicable laws and regulations, or a permanent resident;
“originating” means qualifying as originating under the rules of origin in Chapter 3 (Rules of Origin);
“person” means a natural person or a juridical person;
“person of a Party” means a national or a juridical person of a Party;
“regional level of government” means:
(a) for India, the state and the Union Territories of India;
(b) for the United Kingdom:
(i) England, Northern Ireland, Scotland or Wales; or
(ii) His Majesty’s Government of the United Kingdom of Great Britain and Northern Ireland in respect of England, Northern Ireland, Scotland or Wales but not the United Kingdom as a whole;
“SCM Agreement” means the Agreement on Subsidies and Countervailing Measures, set out in Annex 1A to the WTO Agreement;
“SME” means a small or medium-sized enterprise, including a micro-sized enterprise, and may be further defined, where applicable, according to laws, regulations or national policies of each Party;
“SPS Agreement” means the Agreement on the Application of Sanitary and Phytosanitary Measures, set out in Annex 1A to the WTO Agreement;
“Subcommittee on Trade in Goods” or “Goods Subcommittee” means the Subcommittee on Trade in Goods established pursuant to Article 2.17 (Subcommittee on Trade in Goods – Trade in Goods);
“Subcommittee on Trade in Services” means the Subcommittee on Trade in Services established pursuant to Article 8.19 (Subcommittee on Trade in Services – Trade in Services);
“Subcommittee on Sustainability” or “Sustainability Subcommittee” means the Subcommittee on Sustainability established pursuant to Article 27.7 (Subcommittee on Sustainability – Administrative and Institutional Provisions);
“TBT Agreement” means the Agreement on Technical Barriers to Trade, set out in Annex 1A to the WTO Agreement;
“territory” means:
(a) for India, the territory of the Republic of India, including its territorial sea, and the airspace above it; and other maritime zones including the Exclusive Economic Zone and continental shelf over which the Republic of India has sovereignty, sovereign rights, or exclusive jurisdiction, in accordance with both its laws and regulations in force and international law, including the United Nations Convention on the Law of the Sea, 1982;
(b) for the United Kingdom:
(i) the territory of the United Kingdom, including its territorial sea, and the airspace above it;
(ii) all the areas beyond the territorial sea of the United Kingdom, including the sea-bed and subsoil of those areas, over which the United Kingdom may exercise sovereign rights or jurisdiction in accordance with international law;
(iii) the Bailiwicks of Guernsey and Jersey and the Isle of Man (including their airspace and the territorial sea adjacent to them), territories for whose international relations the United Kingdom is responsible, as regards:
(A) Chapter 2 (Trade in Goods);
(B) Chapter 3 (Rules of Origin);
(C) Chapter 5 (Customs and Trade Facilitation), except for Article 5.9 (Authorised Economic Operator - Customs and Trade Facilitation) in respect of the Bailiwicks of Guernsey and Jersey, and Article 5.13 (Single Window - Customs and Trade Facilitation) in respect of the Isle of Man;
(D) Chapter 6 (Sanitary and Phytosanitary Measures); and
(E) Chapter 7 (Technical Barriers to Trade); and
(iv) any territory for whose international relations the United Kingdom is responsible and to which this Agreement is extended in accordance with Article 30.3 (Territorial Extension – Final Provisions);
“Trade Facilitation Agreement” means the Agreement on Trade Facilitation, set out in Annex 1A to the WTO Agreement;
“TRIPS Agreement” means the Agreement on Trade-Related Aspects of Intellectual Property Rights, set out in Annex 1C to the WTO Agreement, as amended from time to time by an amendment made under Article X of the WTO Agreement that has taken effect for the Parties, and as read together with any decision of the Ministerial Conference of the WTO under paragraph 3 of Article IX of the WTO Agreement (whether made before or after the entry into force of this Agreement);
“WTO” means the World Trade Organization; and
“WTO Agreement” means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994.
Chapter 2. TRADE IN GOODS
Article 2.1. Definitions
For the purposes of this Chapter:
“consular transactions” means the procedure of obtaining from a consul of the importing Party in the territory of the exporting Party, or in the territory of a third party, a consular invoice or a consular visa for a commercial invoice, certificate of origin, manifest, shippers’ export declaration or any other customs documentation in connection with the importation of the good;
“Import Licensing Agreement” means the Agreement on Import Licensing Procedures, set out in Annex 1A to the WTO Agreement;
“import licensing procedure” means an administrative procedure requiring the submission of an application or other documentation (other than that generally required for customs purposes) to the relevant administrative body or bodies as a prior condition for importation into the territory of the importing Party;
“originating good” has the meaning given in Chapter 3 (Rules of Origin); and
“repair” means any processing operation undertaken on a good with the aim of remedying operating defects or material damage and substantially re-establishing the good to its original function or of ensuring compliance with technical requirements for its use, without which the good could no longer be used in the normal way for the purposes for which it was intended, and repair of goods includes restoration and maintenance.
Article 2.2. Objective
The objective of this Chapter is to facilitate trade in goods between the Parties and to progressively liberalise trade in goods in accordance with the provisions of this Agreement and in conformity with Article XXIV of GATT 1994.
Article 2.3. Scope
This Chapter shall apply to trade in goods between the Parties, unless otherwise provided for in this Agreement.
Article 2.4. National Treatment
1. Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994. To this end, Article III of GATT 1994 is incorporated into and made part of this Agreement, mutatis mutandis.
2. Paragraph 1 means, with respect to a regional or state level of government, as the case may be, treatment no less favourable than that accorded by that regional or state level government, as the case may be, to like, directly competitive or substitutable goods of the Party of which it forms part.
Article 2.5. Classification of Goods and Transposition of Schedules
1. For the purposes of this Agreement, the classification of goods in trade between the Parties shall be governed by each Party’s respective tariff nomenclature in conformity with the Harmonized System and its legal notes and amendments.
2. Each Party shall ensure that the transposition of its Schedule of Tariff Commitments, undertaken in order to implement Annex 2A (Schedules of Tariff Commitments for Goods) in the nomenclature of the revised HS Code following periodic amendments to the HS Code, is carried out without impairing or diminishing the tariff commitments set out in its Schedule of Tariff Commitments in Annex 2A (Schedules of Tariff Commitments for Goods).
Article 2.6. Treatment of Customs Duties
1. Unless otherwise provided in this Agreement, each Party shall reduce or eliminate customs duties on originating goods of the other Party in accordance with the tariff commitments set out in its Schedule of Tariff Commitments in Annex 2A (Schedules of Tariff Commitments for Goods).
2. For each good, the base rate of customs duty to which successive reductions under paragraph 1 are to be applied shall be specified in the Party’s Schedule of Tariff Commitments in Annex 2A (Schedules of Tariff Commitments for Goods).
3. Where and for so long as a Party’s applied most-favoured-nation customs duty is lower than the rate calculated pursuant to paragraph 1 or 2, an importer may claim the lower most-favoured-nation customs duty and the Party shall apply the lower rate to the originating goods of the other Party.
4. A Party may at any time unilaterally accelerate the elimination or reduction of customs duties set out in its Schedule of Tariff Commitments in Annex 2A (Schedules of Tariff Commitments for Goods).
5. For greater certainty, a Party may raise a customs duty to the level for a specific year as set out in its Schedule of Tariff Commitments in Annex 2A (Schedules of Tariff Commitments for Goods) following a unilateral reduction as set out in paragraph 4.
6. On the request of a Party, the Parties may consult to consider accelerating or broadening the scope of the elimination or reduction of customs duties set out in their respective Schedules of Tariff Commitments in Annex 2A (Schedules of Tariff Commitments for Goods).
Article 2.7. Modification of Concessions
1. A Party to this Agreement may request the other Party to enter into discussions for the purpose of modifying or withdrawing a concession contained in its Schedule of Tariff Commitments in Annex 2A (Schedules of Tariff Commitments for Goods). Any such modification or withdrawal of concession can be effected only with the agreement of both Parties.
2. A mutually agreed outcome shall be reflected in the relevant amended Schedule of Tariff Commitments in Annex 2A (Schedules of Tariff Commitments for Goods).
3. A Party shall not modify or withdraw a concession without the prior agreement of the other Party.
Article 2.8. Administrative Fees and Formalities
1. Each Party shall ensure, in accordance with Article VIII:1 of GATT 1994 and its interpretative notes, that all fees and other charges of whatever character (other than import duties and export duties, charges equivalent to an internal tax or other internal charges applied consistently with Article III:2 of GATT 1994, and anti-dumping and countervailing duties, safeguards and measures applied in accordance with Article 22 of the Dispute Settlement Understanding) imposed by that Party on, or in connection with, the importation or exportation of goods of a Party, are limited to the amount of the approximate cost of services rendered and shall not represent an indirect protection to domestic goods or a taxation of imports or of exports for fiscal purposes.
2. Each Party shall promptly publish on the internet all fees and charges it imposes in connection with importation or exportation, including any updates or changes to such fees and charges. Fees and charges shall not be applied until information on them, including the responsible authority and when and how payment is to be made, has been published, to the extent possible in the English language.
3. No Party shall require consular transactions, including related fees and other charges, in connection with the importation of any good of the other Party.
Article 2.9. Temporary Admission
1. Each Party shall allow, as provided for in its laws and regulations, goods regardless of their origin, including their means of transport, to be brought into its territory conditionally relieved from payment of import duties and taxes, if such goods:
(a) are intended for re-exportation within a specific period without having undergone any change except normal depreciation and wastage due to the use made of them; and
(b) are brought into its territory for one of the following purposes:
(i) goods intended for display or use at playgrounds, theatres, exhibitions, fairs or other similar events;
(ii) professional equipment, necessary to carry out a trade or profession, which qualifies for temporary entry pursuant to the laws or regulations of the Party;
(iii) goods imported in connection to a commercial operation but whose importation itself does not constitute that commercial operation, including samples, advertising films, recordings, goods used to carry out tests and goods subject to tests;
(iv) containers packing or packaging and pallets all of which are durable, reusable and that are in use or to be used in the shipment of goods in international traffic;
(v) goods imported exclusively for educational or scientific purposes or cultural activities and events;
(vi) goods imported for sports purposes; or
(viii) animals imported for participation in shows, exhibitions, contests, competitions, demonstrations, entertainment, exercise of public functions (such as police dogs, sniffer dogs) or guide dogs.
2. Each Party shall allow, as provided for in its laws and regulations, goods imported in connection with a manufacturing operation or process, including specific tools, models and plans, brought into its custom territory for subsequent re-exportation, conditionally relieved, totally or partially, from payment of import duties and taxes, or eligible for duty drawback.
3. Each Party shall, as provided for in its laws and regulations, on the request of the person concerned and for reasons its customs authority considers valid, extend the time limit for duty-free temporary admission beyond the period initially fixed.
4. A Party may impose a condition for the duty-free temporary admission of goods referred to in paragraph 1, among others, on goods that: