In a move to make imports easier under free trade agreements (FTA), the government has proposed to accept self-certification to prove the origin of such goods. At present, a certificate of origin is issued for meeting the source criteria of imports which is crucial for customs clearance and determine the duties that have to be paid. An amendment in the Customs Act in Budget FY25 aims to replace the word “certificate” with “proof”. The proof of origin means a certificate or declaration issued in accordance with a trade agreement certifying or declaring, as the case may be, that the goods fulfil the country of origin criteria and other requirements specified in the said agreement, according to the Budget documents. “The idea is basically to align this with FTAs as we now also accept self-certification. It is basically to enable self-certification,” revenue secretary Sanjay Malhotra said, explaining the rationale behind the move. Amendment in section 28DA of the Customs Act will enable the acceptance of different types of proof of origin provided in trade agreements to align the provision with new trade agreements which provide for self-certification.
