Case Law Details
In re Boston Scientific India Pvt. Ltd. (CAAR Delhi)
M/s. Boston Scientific India Pvt. Ltd., Unit No. 304, 3rd Floor, Chiranjiv Tower, 43, Nehru Place, New Delhi – 110019 having IEC number 0503039675 (applicant, in short) has filed an application dated 25.09.2023, received in this office on 26.09.2023, seeking advance ruling under section 28-H of the Customs Act, 1962, before the Customs Authority for Advance Rulings, New Delhi (CAAR, New Delhi in short). The application was accordingly registered under Serial No. 28/2023 dated 26.09.2023.
2.1 The applicant has stated that, they are engaged in the business of manufacture, import and sale of healthcare products such as medical equipment and implants into India; they import certain medical goods and re-sells them to third party distributors/ dealers/hospitals for further sale/use in medical procedures; they now propose to import various goods including balloon catheters from its group affiliate, Boston Scientific Medical Device (Malaysia) Sdn Bhd (hereinafter referred to as, ‘Boston Malaysia’); the products mentioned are only illustrative in nature and the present ruling should apply to all imports by them from Malaysia where ‘third country invoicing’ is applicable. It is further stated that on such imports from Boston Malaysia, the applicant seeks to avail the exemption granted to imports from ASEAN countries under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India under the Agreement (`ASEAN India FTA’, in short).
2.2 It is also stated that, an essential condition to be satisfied for availing the benefit of the ASEAN India FTA is that the goods in respect of which the preferential tariff treatment is being claimed are originating in the member countries who are parties to the agreements in question; for determining whether a particular product is originating in the countries/region involved, rules of origin have been set out as per Article 7 of the ASEAN-India FTA which subsequently have been domestically legislated by the Governments of the respective countries in accordance with the rules of origin under the ASEAN-India FTA; for giving effect to the commitments given by India under the ASEAN-India FTA, the Central Government in exercise of its powers under Section 5(1) of the Customs Tariff Act, 1975 has issued the Rules of Origin under the AIFTA vide Notification No. 189/2009-Cus (N.T.) dated 31.12.2009 (189/2009, in short) which are called the Customs Tariff [Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India] Rules, 2009 (`ASEAN Rules of Origin’, in short); further, the Central Government has issued a Notification No. 46/2011-Cus., dated 01.06.2011 (46/2011, in short) in exercise of powers under Section 25(1) of the Customs Act which grants concession or exemption to the specified goods listed in Annexure thereto from the levy of basic customs duty.
2.3 According to Rule 13 of the ASEAN Rules of Origin, any claim that a product shall be accepted as eligible for preferential tariff treatment shall be supported by a Certificate of Origin issued by an authority designated by the exporting country and notified to the other parties in accordance with the Operational Certification Procedures; under the ASEAN Rules of Origin and the claim become eligible for the preferential tariff treatment if they confirm to the origin requirement under either of the following —
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