Proof of origin documents will increase compliance burden on importers

Chennai: In order to curb misuse of preferential trade agreements, the government has mandated that importers should furnish 'proof of origin' documents instead of 'certificate of origin' to avail preferential tariffs. However, this could increase the compliance burden on importers. The customs department has been witnessing several instances where goods originating from non-FTA countries—such as China—were rerouted through FTA member countries like Vietnam or Singapore to exploit preferential duty benefits. In order to curb this, the customs department has widened the scope of acceptable proof. They must ensure access to comprehensive supporting documents that establish the origin of the goods….