CBIC vide Instruction No. 19/2023- Customs dated 04-07-2023 has issued clarifications for customs clearances w.r.t. goods imported under Indian-Japan Comprehensive Economic Partnership Agreement (CEPA).
India-Japan CEPA was negotiated on the basis of HS 2007. As per the Operational Certification Procedures of India-Japan CEPA, the Certificate of Origin (CoO) should contain the six-digit tariff classification based on HS 2007.
Although India and Japan have revised their respective tariff lines as per HS 2022, yet the Certificate of Origin (CoO) Issuing Authority in Japan is mentioning HSNs as per HS 2007.
As a result, preferential duty benefits available under Indo Japan CEPA were being denied to importers in cases where old HSN Codes (HS 2007) are mentioned in CoO.
In this regard, It has been clarified by CBIC vide above stated Instruction No. 19/2023- Customs dated 04-07-2023, that for the purpose of Customs clearance, the HSN code (2007 version) mentioned in CoO issued under India-Japan CEPA needs to be correlated with the HS Code (2022 version) mentioned in the Bill of Entry, at the time of Customs clearance.
CBIC has also directed that the said procedure be suitably implemented in Customs formations/ National Assessment Centres.
Since now Customs has clarified that the benefit of concessional duty under Indo-Japan- CEPA is allowed on goods with Certificate of Origin (CoO) having old HSN Codes (HS 2007), the importers should accordingly take up with Customs for availing the benefits in case it has been denied and avoid any loss on account thereof.
