In re Nutricia International Private Limited (CAAR Mumbai)
CAAR Clarification on Bill-to-Ship to Model, Margin Inclusion, Manufacturing Activity, and Regional Value-Content Criteria under AIFTA/Rules of Origin
Question: Whether the Bill-to-Ship to model/third party invoicing model adopted by the Applicant is permitted under the AIFTA/Rules of Origin?
Answer: Yes,, the proposed .Bill-to-Ship to model/third party invoicing model adopted by the Applicant is permitted under the AIFTA/Rules of Origin.
Question: Whether the margin earned by the Danone Trading ELN B.V., Netherlands (“the Seller”) Will be included in the FOB. price’ of the subject goods for the ‘purposes of determining the regional value-content?
Answer: If such margin is in the nature of “leasing or research, development, design and engineering, or royalties or licenses (in connection with patented machines or processes used in the manufacture of the good or the right to manufacture the good), or inspection and testing of material” which is paid or to be paid by the manufacturer to the Seller or it is in ambit of any other kind of Overhead cost includable in respect of clause 2 (iv) of definition of FOB price, it is to be included in the FOB price of the subject goods for the purposes of determining the regional-value-content. Otherwise, such margin earned by the Danone Trading F,I,N B.V., Netherlands (“the Seller”) is not includable in the FOB price.
