10 Requests for information from the United Kingdom shall be made to the Department of Commerce in India.
of all originating materials used in the production if the build-up method is used as well as other relevant elements, including expenses, in accordance with Article 3.5 (Qualifying Value Content).
where the origin criterion is based on a specific production process, a description of that specific process;
where the good has acquired originating status pursuant to paragraph 1 of Article 3.6 (Materials Used in Production) or Article 3.8 (Cumulation), information on the origin of the materials used and the final good, including information referred to in subparagraphs (d), (e) and (f), and the place of production;
information on any tolerances relied on under Article 3.9 (Tolerance);
information relating to compliance with the non-alteration provisions under Article 3.14 (Non-Alteration);
any other information including specific documentation or production process; or
supporting documentation, where appropriate.
The competent authority of the exporting Party shall provide the customs authority of the importing Party with a written acknowledgement of receipt of the request made pursuant to paragraph 4 or 6 within a period of 30 days after the date of the request.
Following a request under paragraph 4, the competent authority of the exporting Party may conduct a verification by one or more of the following activities:
requesting, in writing, specific information and documentation from the exporter, producer or supplier referred to in paragraph 6;
requesting, in writing (including by way of questionnaire), such information from the exporter, a producer, or a supplier to ascertain the veracity of the information that formed the basis of the proof of origin; and
visiting the premises of the exporter, producer, or supplier to review the records referred to in paragraph 2 of Article 3.24 (Record Keeping Requirements), or to observe the facilities, processes, equipment or tools used in the production of the good, or to gather further evidence to verify the originating status of the goods.
As soon as possible, and in any event within seven months of receiving a request under paragraph 4 the competent authority of the exporting Party shall provide the customs authority of the importing Party with a verification report. In exceptional cases, the Parties may agree, by mutual agreement, to extend this period by a further three months. The verification report shall include the following:
subject to paragraph 10, any available information, including specific documentation, which the customs authority of the importing Party requested the competent authority of the exporting Party to verify, pursuant to paragraph 6;
a description of the good that is subject to examination, including its tariff classification in 2, 4 or 6-digit format, depending on the origin criterion;
a description of the production process;
information on the manner in which the verification of the good pursuant to paragraph 8 was conducted including the subject and scope of the verification; and
supporting documentation, where appropriate.
Notwithstanding paragraph 9, the competent authority of the exporting Party shall not provide information to the customs authority of the importing Party if that information is deemed confidential by the exporter, producer or supplier. In such circumstances, the competent authority of the exporting Party shall confirm if it has reviewed the information the importing Party requested it to verify pursuant to paragraphs 4 and 6 and shall list the sources of information reviewed, stating whether the information supports the claim for preferential tariff treatment.
If, upon receiving the verification report under paragraph 9, the customs authority of the importing Party is unable to make a determination, it may request that the competent authority of the exporting Party verifies specific additional information, as set out in the request, relating to the origin of the good, which may include the information referred to in paragraph 6, by way of a written request to the exporter, producer or supplier.
In exceptional circumstances, if, following a request under paragraph 11, the customs authority of the importing Party is unable to make a determination, it may request that the competent authority of the exporting Party conducts a visit to the exporter, producer or supplier. The customs authority of the importing Party shall only make a request where it reasonably considers the visit necessary to make a determination. The request for such a verification visit shall be made no later than 30 days of the receipt of the response from the competent authority of the exporting Party to a request made under paragraph
11. The competent authority of the exporting Party shall respond to the request for a visit within 45 days.
Upon acceptance of a request for a visit under paragraph 12, the competent authority of the exporting Party shall give a notice of at least 21 days to the competent authority of the importing Party so as to enable arrangements for the visit.
Subject to any reasonable conditions set out by the competent authority of the exporting Party, such as health and safety requirements, the customs authority
of the importing Party may designate up to two observers to be present during the verification visit conducted by the customs authority of the exporting Party under paragraph 12, provided that:
any person designated as an observer is a government official of the importing Party; and
any observer acts through the competent authority of the exporting Party and does not, on its own initiative, look for documents, conduct any searches, or question the exporter, producer or supplier directly.
The competent authority of the exporting Party shall share the information on the visit including the manner in which the visit was conducted as well as the subject and scope of the verification within 45 days of the conclusion of the visit.
A verification under this Article may be conducted at any time after the claim for preferential tariff treatment is made.
A request for verification under this Article shall be conducted on the basis of risk assessment methods, which may include random selection, or on the basis of intelligence.
During verification, the importing Party may allow the release of the good, subject to payment of any duties or provision of any security as provided for in its laws and regulations. In accordance with the laws and regulations of the importing Party, if as a result of the verification the importing Party determines that the good meets all the requirements of this Chapter, it shall grant preferential tariff treatment to the good and refund any excess duties paid or release any security provided, unless the security also covers other obligations.
The customs authority of the importing Party shall reserve the right to issue the final determination of origin in accordance with Article 3.19 (Determinations of Claims for Preferential Tariff Treatment), provided that the determination takes into account the information provided to it by the competent authority of the exporting Party as well as any independent findings or investigation.
The customs authority of the importing Party shall:
make a determination following a verification as expeditiously as possible and no later than one year from the date it receives information which, in its opinion, is sufficient to enable it to make such a determination. If permitted by its laws and regulations, a Party may extend this period in exceptional cases, such as where the information concerned is complex. This time period will not apply to verifications pertaining to cases of suspected fraud, collusion, wilful misstatement, and suppression of facts referred to in paragraph 5;
provide the importer with a written determination of whether the good is originating that includes the reasons for the determination; and
provide the competent authority of the exporting Party with a written determination of whether the good is originating including the reasons for that determination.
The competent authorities of the Parties shall cooperate in the overall operation and administration of the verification process including establishing priorities, by mutual agreement, if there are a significant number of requests.
The customs authorities of the Parties shall bear their own costs in carrying out the activities referred to in this Article.
Temporary Suspension of Preferential Tariff Treatment11
Subject to the possibility of exemption under paragraph 11, the importing Party may, in accordance with the procedure laid down in paragraph 3, temporarily suspend preferential tariff treatment in respect of a good for which an exporter or producer has completed a proof of origin, if:
a good has been subject to verification in accordance with Article 3.25 (Verification of Origin) on at least two separate occasions and the second occasion is in respect of a proof of origin dated at least one month after the competent authority of the importing Party provides the determination to the competent authority of the exporting Party in respect of the first occasion; and
each verification results in the denial of preferential tariff treatment in accordance with Article 3.19 (Determinations of Claims for Preferential Tariff Treatment).
Suspension of preferential tariff treatment under paragraph 1 shall only apply to a good imported after the suspension is initiated, if that good is:
classified under the same classification code as specified in the import declaration of the good that was subject to verification under paragraph 1; and
exported or produced by the exporter or producer who completed the proof of origin of the good that was subject to verification under paragraph 1.
If the importing Party intends to temporarily suspend preferential tariff treatment in accordance with paragraph 1, it shall notify the competent authority of the exporting Party at least 15 days prior to the commencement of any suspension. This notification shall include the following:
11 For greater certainty, a good subject to verification which has been released subject to the payment of any duties or provision of any security in accordance with paragraph 18 of Article 3.25 (Verification of Origin) shall not constitute temporary suspension of preferential tariff treatment under this Article.
the name of the exporter or producer and their reference number;
detailed reasons for the intention to suspend preferential tariff treatment;
a detailed description of the good subject to suspension, including the corresponding commodity code as specified in the import declaration, and the description of the good as set out in the proof of origin;
the time period for which the temporary suspension is to be in effect;
information on the measures necessary for the restoration of preferential tariff treatment; and
any other relevant information.
Temporary suspension pursuant to paragraph 1 shall apply only for the period necessary to counteract breaches or circumventions of this Chapter and to protect the financial interests of the importing Party. The competent authority of the importing Party shall restore preferential tariff treatment suspended in accordance with paragraph 1 if the competent authority of the exporting Party provides evidence and the Parties agree that the conditions that gave rise to the suspension no longer persist. If the importing Party is not satisfied that the evidence provided by the competent authority of the exporting Party demonstrates that the conditions that gave rise to the suspension no longer persist, they shall provide their reasoning. Where the conditions that gave rise to the suspension persist at the expiry of the period of the temporary suspension, the importing Party may decide to renew the suspension. Any renewal of suspension shall be notified to the competent authority of the exporting Party.
Subject to the possibility of exemption under paragraph 11, the importing Party may temporarily suspend the relevant preferential tariff treatment for future imports of the same good classified under an identified classification code as specified in the import declaration in accordance with the procedure laid down in paragraphs 7 to 9 if:
the importing Party suspects, based on verifiable information that deliberate breaches of this Chapter have been committed in respect of that good;
the good has been subject to verification in accordance with Article 3.25 (Verification of Origin) for at least two different exporters or producers, each being subject to verification on at least two separate occasions, and the second occasion is in respect of a proof of origin dated at least one month after the competent authority of the importing Party provides the determination to the competent authority of the exporting Party in respect of the first occasion; and
each verification results in the denial of preferential tariff treatment in accordance with Article 3.19 (Determinations of Claims for Preferential Tariff Treatment).
For the purposes of paragraph 5, the exporters or producers subject to verification shall collectively account for the majority of the total exports of those goods from the exporting Party to the importing Party in the 12 months preceding the date of the first request for verification referred to in subparagraph 5(b).
If the importing Party intends to temporarily suspend preferential tariff treatment in accordance with paragraph 5, it shall notify the Working Group on Rules of Origin and, on the exporting Party’s request, shall enter into consultations with the exporting Party. The importing Party shall provide that the notification to the Working Group on Rules of Origin includes evidence that the requirements in paragraphs 5 and 6 have been met. Consultations shall aim to clarify the grounds for intention to suspend, be used to discuss any mitigating factors, and explore possible solutions to avoid suspension. No suspension shall take place until the consultation process has concluded, unless the Parties agree otherwise.
If the Parties fail to agree on a mutually acceptable solution or no consultations have been entered into within one month after the date of notification made in accordance with paragraph 7, or such other period as the Parties may mutually agree, the importing Party may temporarily suspend the relevant preferential tariff treatment. In that case, the importing Party shall notify the temporary suspension, including the period during which it intends the temporary suspension to apply, to the Working Group on Rules of Origin without delay.
Temporary suspension pursuant to paragraph 5 shall apply only for the period necessary to counteract breaches or circumventions of this Chapter and to protect the financial interests of the importing Party. The Parties shall keep any suspension under review through the Working Group on Rules of Origin and, where it is agreed by the Parties that the suspension is no longer necessary, the importing Party shall bring it to an end. Where the conditions that gave rise to the suspension pursuant to paragraph 5 persist at the expiry of the initial period of the temporary suspension, the importing Party may decide to renew the suspension. Any renewal of suspension shall be notified to the exporting Party.
Each Party shall publish, in accordance with its internal procedures, notices to importers about any decision concerning temporary suspension referred to in paragraph 5.
Notwithstanding paragraphs 1 and 5, if an exporter or producer is able to satisfy the exporting Party that such goods are fully compliant with the requirements of this Chapter and the importing Party agrees, the importing Party shall exempt those goods from the suspension.
This Chapter shall not require a Party to furnish or allow access to information where the use or disclosure of that information would impede law enforcement or would be contrary to that Party’s law.
Each Party shall maintain, in conformity with its law, the confidentiality of any information collected pursuant to this Chapter and shall protect that information from disclosure that could prejudice the competitive position of the person to whom the information relates.
Each Party shall ensure that confidential information collected pursuant to this Chapter shall not be used or disclosed for purposes other than the administration and enforcement of determination of origin or of customs matters, except with the permission of the person or Party who provided the confidential information.
Notwithstanding paragraph 2 and 3, if the Party receiving or obtaining the information is required by its law to disclose the information for purposes other than the administration and enforcement of determination of origin or of customs matters, that Party shall, where possible, notify the person or Party who provided the information of such use. That notification shall, where possible, be given in advance of such use.
Notwithstanding paragraph 3, a Party may allow information collected pursuant to this Chapter to be used in any administrative, judicial, or quasi-judicial proceedings instituted for failure to comply with customs-related laws and regulations implementing this Chapter. A Party shall, where possible, notify the person or Party who provided the information of such use. That notification shall, where possible, be given in advance of such use.
The Parties shall, if one of them so requests, exchange information on their respective law for the purpose of facilitating the operation and application of this Article.
Working Group on Rules of Origin
The Parties hereby establish a Working Group on Rules of Origin composed of government representatives of each Party responsible for rules of origin matters to consider any matters arising under this Chapter.
The functions of the Working Group on Rules of Origin shall include:
cooperating in the administration and interpretation of this Chapter;
exchanging information on matters related to this Chapter;
communicating and updating the necessary contact details of the Working Group members for the purposes of this Chapter;
considering any matter referred to it by the Subcommittee on Trade in Goods or the Joint Committee; and
any other matter as the Working Group mutually agrees.
The Working Group on Rules of Origin shall meet within 12 months of the date of entry into force of this Agreement and thereafter at least once annually.
The Working Group on Rules of Origin shall report to the Subcommittee on Trade in Goods.
For the purposes of this Chapter:
Article Article 4.1 Definitions
“bilateral safeguard measure” means a measure referred to in paragraph 2 of Article 4.7 (Application of a Bilateral Safeguard Measure);
“elimination or reduction of a customs duty” means any elimination or reduction of customs duty in accordance with paragraph 1 of Article 2.6 (Treatment of Customs Duties – Trade in Goods);
in determining injury or threat thereof, a “domestic industry” means the producers as a whole of the like or directly competitive goods operating within the territory of a Party, or those whose collective output of the like or directly competitive goods constitutes a major proportion of the total domestic production of those goods;
“serious injury” means a significant overall impairment in the position of a domestic
industry;
“threat of serious injury” means serious injury that is clearly imminent and is determined on the basis of facts and not merely on allegation, conjecture or remote possibility; and
“transition period” means, in relation to a particular originating good, the period beginning on the date of entry into force of this Agreement and ending 14 years after the date of completion of the elimination or reduction of a customs duty on that particular originating good in accordance with Annex 2A (Schedules of Tariff Commitments for Goods).
Non-Application of Dispute Settlement
Neither Party shall have recourse to dispute settlement under Chapter 29 (Dispute Settlement) for any matter arising under Section B or Section C.
Section B
Anti-Dumping and Countervailing Measures
Article Article 4.3 General Provisions
The Parties affirm their rights and obligations under Article VI of GATT 1994, the Anti-Dumping Agreement, and the SCM Agreement.
After receipt by a Party’s investigating authority of a properly documented application for an anti-dumping or a countervailing investigation with respect to imports from the other Party, and before initiating an investigation, the Party shall provide written notification to the other Party of its receipt of the application.
Before initiating a countervailing investigation, a Party shall afford the other Party a meeting to consult with its investigating authority regarding the application.
The Parties reaffirm their rights and obligations under Articles 6.2 and 6.3 of the Anti-Dumping Agreement and Article 12.2 of the SCM Agreement, including with respect to the rights of interested parties to present information orally and to defend their interests in the conduct of an anti-dumping investigation or a countervailing duty investigation.
Notwithstanding paragraphs 2 and 3, nothing shall prevent the investigating authority from proceeding to initiate and conduct the investigation expeditiously.
A Party shall ensure, before a final determination is made, disclosure of the essential facts under consideration which form the basis for the decision whether to apply final measures. This is without prejudice to Article 6.5 of the Anti- Dumping Agreement and Article 12.4 of the SCM Agreement.
Lesser Duty Rule and Public Interest Test
Should a Party decide to impose an anti-dumping duty pursuant to Article 9.1 of the Anti-Dumping Agreement, or countervailing duty pursuant to Article
19.2 of the SCM Agreement, it shall apply a duty less than the margin of dumping or subsidy margin, if such a lesser duty would be adequate to remove the injury to the domestic industry, in accordance with the Party’s laws and regulations.
To the extent provided for under each Party’s laws, regulations and procedures, an anti-dumping duty or a countervailing duty shall not be applied by a Party on the goods of the other Party if it is concluded that it is not in the public interest to apply the duty.
Section C
Global Safeguard Measures
Article Article 4.6
General Provisions and Transparency
The Parties affirm their rights and obligations concerning global safeguard measures under Article XIX of GATT 1994 and the Agreement on Safeguards.
A Party that initiates a safeguard investigatory process shall provide to the other Party an electronic copy of any notification given to the WTO Committee on Safeguards under Article 12.1 of the Agreement on Safeguards.
A Party adopting global safeguard measures shall endeavour to impose them in a manner least affecting bilateral trade.
Section D
Bilateral Safeguard Measures
Article Article 4.7
Application of a Bilateral Safeguard Measure
If, as a result of the elimination or reduction of a customs duty under this Agreement, an originating good from a Party is being imported into the territory of the other Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to cause or threaten to cause serious injury to a domestic industry, the other Party may adopt either of the bilateral measures provided for in paragraph 2.
If the conditions in paragraph 1 are met, the importing Party may apply one of the following bilateral safeguard measures:
suspension of the further reduction of the rate of customs duty on the good concerned provided for under this Agreement; or
increase in the rate of customs duty on the good concerned to a level which does not exceed the lesser of:
the most-favoured-nation applied rate of customs duty on the good in effect at the time the bilateral safeguard measure is applied; or
the most-favoured-nation applied rate of customs duty on the good in effect on the day immediately preceding the date of entry into force of this Agreement.
A Party shall apply a bilateral safeguard measure to the extent and only for such period of time as may be necessary to prevent or remedy serious injury and to facilitate adjustment of the domestic industry.
The period of time referred to in paragraph 1 shall not exceed two years, except where the period may be extended for an additional period of no more than two years, provided that the investigating authority of the Party that applies the bilateral safeguard measure determines, in conformity with the procedures set out in Article 4.9 (Investigation Procedures) that the bilateral safeguard measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment, and provided that the total duration of the bilateral safeguard measure, including such extensions, does not exceed four years.
In order to facilitate adjustment in a situation where the expected duration of a bilateral safeguard measure exceeds one year, the Party that applies the bilateral safeguard measure shall progressively liberalise it at regular intervals during the period of application.
No bilateral safeguard measure shall be applied again to the import of an originating good that has previously been subject to such a bilateral safeguard measure for a period of time equal to the duration of the previous bilateral safeguard measure or one year since the expiry or termination of the previous bilateral safeguard measure, whichever is longer.
Notwithstanding paragraph 4, a bilateral safeguard measure with a duration of 180 days or less may be applied again to the import of an originating good if:
at least one year has elapsed since the date of introduction of a bilateral safeguard measure on the import of that good; and
a bilateral safeguard measure has not been applied on the same good more than twice in the five-year period immediately preceding the date of the first imposition of the bilateral safeguard measure.
When a Party ceases to apply a bilateral safeguard measure, the rate of customs duty shall be the rate that would have been in effect in accordance with the Party’s Schedule to Annex 2A (Schedules of Tariff Commitments for Goods) but for the bilateral safeguard measure.
Neither Party shall apply or maintain a bilateral safeguard measure beyond the expiration of the transition period.
A Party may apply a bilateral safeguard measure (other than on a provisional basis) only following an investigation by its investigating authority pursuant to the procedures set out in this Article. The investigation shall include reasonable public notice to all interested parties and public hearings or other appropriate means in which importers, exporters and other interested parties could present evidence and their views, including the opportunity to respond to the representations of other interested parties and to submit their views, among other things, as to whether or not the application of a bilateral safeguard measure would be in the public interest. The investigating authority shall publish a report setting forth its findings and reasoned conclusions reached on all pertinent issues of fact and law, including a detailed analysis of the case under investigation, as well as a demonstration of the relevance of factors examined in accordance with paragraph 2.
In the investigation to determine whether increased imports have caused or are threatening to cause serious injury to a domestic industry, the investigating authority shall evaluate all relevant factors of an objective and quantifiable nature having a bearing on the situation of the domestic industry, in particular, the rate and amount of the increase in imports of the good concerned in absolute and relative terms, the share of the domestic market taken by increased imports, and changes in the level of sales, production, productivity, capacity utilisation, profits and losses, and employment.
The determination referred to in paragraph 2 shall not be made unless the investigation demonstrates, on the basis of objective evidence, the existence of a causal link between increased imports of the good concerned and serious injury or threat thereof. Where factors other than increased imports are at the same time causing serious injury or threat thereof, such injury shall not be attributed to increased imports.
Any information which is by its nature confidential or which is provided on a confidential basis shall, upon cause being shown, be treated as such by the investigating authority. Such information shall not be disclosed without permission of the party submitting it. A party providing confidential information may be requested to furnish non-confidential summaries thereof or, if such parties indicate that such information cannot be summarised, the reasons why a summary cannot be provided. However, if the investigating authority finds that a request for confidentiality is not warranted and if the party concerned is either unwilling to make the information public or to authorise its disclosure in generalised or summary form, the investigating authority may disregard such information unless it can be demonstrated to their satisfaction from appropriate sources that the information is correct.
An investigation shall not exceed one year from the date of initiation, but a Party may, in exceptional circumstances, extend the investigation for no more than a further three months. A Party extending an investigation shall notify the other Party in writing of its intention to extend the investigation as soon as possible and, in any event, within one year of the date of initiation of the investigation.
A Party shall immediately provide written notice to the other Party upon:
initiating an investigation referred to in Article 4.9 (Investigation Procedures) relating to serious injury, or threat thereof, and the reasons for it;
making a finding of serious injury or threat thereof caused by increased imports of an originating good of the other Party as a result of the elimination or reduction of a customs duty in accordance with Article
4.7 (Application of a Bilateral Safeguard Measure);
taking a decision to apply or extend a bilateral safeguard measure; or
taking a decision to modify the bilateral safeguard measure for progressive liberalisation.
The Party proposing to apply a bilateral safeguard measure shall provide the other Party with all pertinent information which shall include:
in the written notice referred to in subparagraph 1(a), the reason for the initiation of the investigation, a precise description of the originating good subject to the investigation including its subheading of the Harmonized System (for indicative purposes only), the period subject to the investigation, and the date of initiation of the investigation; and
in the written notice referred to in subparagraphs 1(b) through (d), evidence of serious injury or threat thereof caused by the increased imports, precise description of the good subject to the proposed bilateral safeguard measure including its subheading of the Harmonized System (for indicative purposes only), and where applicable, the proposed date of introduction, the extension or modification of the bilateral safeguard measure, its expected duration, and the timetable for the progressive liberalisation of the bilateral safeguard measure provided for in paragraph 3 of Article 4.8 (Duration and Scope).
A Party initiating an investigation shall, after notifying the other Party in accordance with paragraph 1, consult with the other Party as far in advance of applying a bilateral safeguard measure as practicable, with a view to reviewing the information arising from the investigation and exchanging views on the bilateral safeguard measure.
Provisional Bilateral Safeguard Measures
In critical circumstances where delay would cause damage that would be difficult to repair, a Party may apply a bilateral safeguard measure on a provisional basis without complying with the procedural requirements of