NEW DELHI: The government does not expect the free trade agreement (FTA) with UAE, scheduled to be signed on Friday, to be misused by third countries, given that it has the tools to check value addition and invoicing, in addition to the treaty having provisions for tariff rate quotes, which will allow the import of only a specified amount of certain quantities at lower duty.
Given the limited amount of manufacturing in the Emirates, there is an apprehension that third countries, especially China, may route goods into the country via UAE by merely assembling them or simply badging them. The fear emanates from the case of set of boxes, which found their way in India through Vietnam, a member of the Asean grouping, but were largely Chinese made and merely assembled in the South East Asian country.
During a recent interaction, Central Board of Customs and Indirect Taxes chairman Vivek Johri told TOI that in case of UAE, there is an agree- ment that the country of origin certificate will be issued by the ministry of trade and not by industry body, which will ensure that their authenticity will not be questioned. Besides, the value addition norms or product specific rules will be checked through Customs (Administration of Rules of Origin Under Trade Agreements) Rules or CAROTAR, brought two years ago to check misuse.
In a statement, the mi- nistry of external affairs on Wednesday said that PM Narendra Modi and crown prince of Abu Dhabi Sheikh Mohamed bin Zayed al Nahyan will attend the India-UAE virtual summit on Friday. Negotiations for the comprehensive economic partnership agreement, which started in September 2021, have now been completed, it said.
Asked about the impact of FTAs with countries such as UAE, the UK and Australia, Johri said: “FTAs will obviously impact your revenue flows, but the point is you always do it based on a cost-benefit analysis. When you do that evaluation you may lose revenue from goods but you are getting a compensatory benefit somewhere else. It’s a calculated policy call. ”
The government expects the trade treaties, including the one with UAE, to boost trade and also open up new markets, especially in the Persian Gulf and Africa.
Given the limited amount of manufacturing in the Emirates, there is an apprehension that third countries, especially China, may route goods into the country via UAE by merely assembling them or simply badging them. The fear emanates from the case of set of boxes, which found their way in India through Vietnam, a member of the Asean grouping, but were largely Chinese made and merely assembled in the South East Asian country.
During a recent interaction, Central Board of Customs and Indirect Taxes chairman Vivek Johri told TOI that in case of UAE, there is an agree- ment that the country of origin certificate will be issued by the ministry of trade and not by industry body, which will ensure that their authenticity will not be questioned. Besides, the value addition norms or product specific rules will be checked through Customs (Administration of Rules of Origin Under Trade Agreements) Rules or CAROTAR, brought two years ago to check misuse.
In a statement, the mi- nistry of external affairs on Wednesday said that PM Narendra Modi and crown prince of Abu Dhabi Sheikh Mohamed bin Zayed al Nahyan will attend the India-UAE virtual summit on Friday. Negotiations for the comprehensive economic partnership agreement, which started in September 2021, have now been completed, it said.
Asked about the impact of FTAs with countries such as UAE, the UK and Australia, Johri said: “FTAs will obviously impact your revenue flows, but the point is you always do it based on a cost-benefit analysis. When you do that evaluation you may lose revenue from goods but you are getting a compensatory benefit somewhere else. It’s a calculated policy call. ”
The government expects the trade treaties, including the one with UAE, to boost trade and also open up new markets, especially in the Persian Gulf and Africa.
For all the latest business News Click Here
Denial of responsibility! TechAI is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
