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No.14/005/096/2004
Feb 27, 2004
Members of the Council,
Sub: Preferential import duty in China for India's export under Bangkok Agreement
As the members are aware, the Bangkok Agreement is an initiative under the Economic and Social Commission for Asia and the Pacific (ESCAP) to exchange tariff concessions among countries in the ESCAP region. India, South Korea, Bangladesh and Sri Lanka were signatories to the Agreement since 1975, but China joined the Agreement in April 2001.
As a result of China becoming a signatory to the Agreement, bilateral negotiations for exchange of tariff concessions between India and China were concluded in the year 2003. Accordingly, China issued Customs Notification No.75 on Dec 23, 2003, which comes into effect from Jan 1, 2004.
The list of items pertaining to the leather & leather products industry which are eligible for tariff concession in China as per aforesaid Notification is attached herewith for information. In the list, both MFN rates as well as preferential rates have been mentioned. It can be seen that preferential tariff is less by only 1 to 4% against applicable MFN rates for leather, leather goods, footwear uppers and components, except in the case of Saddlery & Harness items on which preferential tariff is less by 8% of the MFN tariff.
To be eligible for preferential duty access to China under the Bangkok Agreement, the goods shall comply with the Rules of Origin of the Government of China under the Bangkok Agreement and shall be accompanied by a Certificate of Origin to this effect issued by an authorized agency listed in Appendix 35A of the Exim Policy Handbook of Procedures of 2002-07. The Export Inspection Council through their 57 field offices all over India namely Export Inspection Agency, which issue the GSP Certificates, are one of the authorized agencies for issuing certificate of origin for China also. Separate form is available in their offices at a cost of Rs.25/- per set, and the prescribed certification fee is Rs.110/- per certificate. Besides, the Council for Leather Exports is also one of the authorized agencies for this purpose.
This is for information and necessary guidance of members while exporting the eligible items to China.
Thanking you,
Yours faithfully,
K Abdul Sattar Khan
Assistant Director
Encl: as stated above
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