New Delhi, Nov 6 (SocialNews.XYZ) Over 600 Japanese companies showed up recently at a webinar to discuss issues related to India's new Customs Rules of Origin under CAROTAR 2020.
As per a report in Asian Community News, the mandatory declaration of country of origin, as well as cost of components of imported goods by the importers under newly-implemented Rules of Origin, have emerged as a cause of serious concern among various nations, especially the countries with which India has entered into Foreign Trade Agreement (FTA) such as Japan, South Korea, and ASEAN.
'All such problems came to the fore during a webinar conducted jointly by the Embassy of Japan in India, the Japan External Trade Organisation (JETRO), and the Japan Chamber of Commerce and Industry in India (JCCII) on Tuesday. More than 600 Japanese companies turned up during the webinar which is a clear indication of the severity of the problems related to the implementation of the provisions of new Rules of Origin laid under CAROTAR 2020," the report said.
JETRO was represented by Yasuyuki Murahashi, Chief Director-General, and the Japan Embassy by Yuichi Koshikawa, Second Secretary, Economic Section.
According to JETRO Chief DG, India entered into FTA with countries like Japan and other ASEAN countries for extending the benefit of low custom charges to them and it was good for promoting bilateral business. But the new Rules of Origin (CAROTAR 2020) is creating new problems for the companies at the port level.
"If the customs officials had followed the conditions specified in the CAROTAR 2020, there would have been no problem but unfortunately, they are going overboard, and are demanding information over and above of what is mentioned in the Rules," said Murahashi as per the report.
He said that it was extremely difficult for the companies importing goods to get all information from the country of origin because of the confidentiality factor on the part of the exporter.
The report quoted Murahashi saying that the new Rules of Origin has resulted in the delayed supply of material, broken supply chain, mounting demurrage charges, increasing cost of operations, loss of production, and resulting in the out-of-stock situation for the companies wanting to take advantage like preferential rate of customs charges available under FTA.
"Negotiations with the customs officials are taking a longer time than earlier and that is what is affecting the clearances of the imported goods, and shipments are getting delayed resulting in loss of revenue as well as business to many companies," he added.
In his address to the participating Japanese companies, Koshikawa said that the webinar was organised to address the problems being faced by Japanese companies in India with regard to adherence to new Rules of Origin (CAROTAR 2020), and also to offer solutions.
Source: IANS
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