The Ministry of Finance, Department of Revenue, has issued Instruction No. 19/2023- Customs regarding the implementation of the India-Japan Comprehensive Economic Partnership Agreement (CEPA) for customs clearances. The instruction addresses the issue of using different versions of Harmonized System (HS) codes in the Certificate of Origin (CoO) and the Bill of Entry (B/E) for imports under the CEPA.
The instruction highlights that the India-Japan CEPA was negotiated based on the HS 2007 version. According to the Operational Certification Procedures of the CEPA, the CoO should contain the six-digit tariff classification based on HS 2007. However, the tariff preference under the CEPA has been extended based on the transposition to the existing HS code, i.e., HS 2022, as per Notification No. 69/2011-Customs.
To ensure smooth customs clearance, the Ministry clarifies that the HS code (2007 version) mentioned in the CoO issued under the India-Japan CEPA should be correlated with the HS code (2022 version) mentioned in the B/E at the time of customs clearance.
The instruction requests all relevant authorities, including Principal Chief Commissioners, Chief Commissioners, Principal Commissioners, Commissioners, and Directors General under the Central Board of Indirect Taxes & Customs, to note this procedure and implement it accordingly in customs formations and National Assessment Centres.
The instruction issued by the Ministry of Finance regarding the implementation of the India-Japan CEPA for customs clearances emphasizes the need to harmonize HS codes between the CoO and B/E. This alignment ensures proper identification and classification of goods for tariff preferences under the CEPA.
F. No. CBIC-15021/8/2023-1CD-CBEC
Government of India
Ministry of Finance, Department of Revenue
Central Board of Indirect Taxes & Customs
Room No. 227 A, North Block, New Delhi
All Principal Chief Commissioners / Chief Commissioners of Customs / Customs (Preventive) / Customs and Central Tax
All Principal Commissioners / Commissioner of Customs / Customs (Preventive)
All Principal Directors General / Directors General under CBIC
Subject: Implementation under India-Japan CEPA – reg
Request has been received by the Board related to Customs clearances of imports under India-Japan Comprehensive Economic Partnership Agreement (CEPA) when there is use of different versions of HS in Certificate of Origin (CoO) and Bill of Entry (B/E).
2.1 With respect to the above, it is conveyed that India-Japan CEPA was negotiated on the basis of HS 2007. As per the Operational Certification Procedures of India-Japan CEPA [please refer Notification No. 55/2011-Customs (N.T.) dated 1st August 2011], the CoO should contain the six-digit tariff classification based on HS 2007.
2.2 On the other hand, the tariff preference under India-Japan CEPA has been extended vide Notification No. 69/2011-Customs dated 29th July 2011, as amended on account of transposition to existing HS, i.e. I-IS 2022.
3. In view of the above, it is clarified that for the purpose of Customs clearance, the HS code (2007 version) mentioned in CoO issued under India-Japan CEPA needs to be correlated with the HS Code (2022 version) mentioned in the B/E, at the time of Customs clearance.
4. It is requested that the above may be noted and this procedure be suitably implemented in Customs formations/ National Assessment Centres.
International Customs Division, CBIC
Copy to – Conveners of National Assessment Centres under CBIC for ensuring uniform implementation.