| 6.3 |
WHOLLY OBTAINED PRODUCTS qualify for GSP benefits by virtue
of total absence of any materials or components of imported
/ unknown origin in their manufacture.
|
| 6.4 |
PRODUCTS
WITH IMPORT CONTENT are manufactured wholly or partially from
materials, parts or components imported into India or of unknown
origin.
|
| 6.5 |
PRODUCTS
WITH IMPORT CONTENT qualify for GSP if the materials, parts
or components of imported or unknown origin used in their
manufacture have undergone SUFFICIENT WORKING OR PROCESSING
in India (see point 8). On the other hand, a product using
imported materials is non-originating if the imported materials
have only been subject to MINIMAL OPERATIONS in India, (see
point 9)
|
| 6.6 |
Materials
of unknown origin are treated as though they were imported |
| 6.7 |
Criteria
laid down for acquisition of originating status must be satisfied
without interruption in the beneficiary country
|
| 7.0
|
WHOLLY
OBTAINED PRODUCTS |
| 7.1
|
Any
product obtained without the use of materials of imported
or unknown origin is called a WHOLLY OBTAINED PRODUCT.
|
| 7.2 |
WHOLLY
OBTAINED criterion is interpreted strictly. Even a MINIMAL
content of "materials, parts or components of imported or
unknown origin" makes the finished product loose its qualification
as wholly obtained.
|
| 7.3 |
Following
categories of goods are considered wholly, obtained in India:
|
| |
(a) |
Mineral
products extracted from its soil or from its sea-bed: or,
in the case of Bulgaria, Czech Republic. Hungary, Russian
Federation and Slovakia, mineral products extracted in the
Indian territory or from its continental shelf;
|
| |
(b) |
Vegetable
products harvested in India; |
| |
(c) |
Live
animals born and raised in India; |
| |
(d) |
Products
obtained in India from live animals; |
| |
(e) |
Products
obtained from hunting or fishing conducted in India; |
| |
(f) |
Products
obtained of sea fishing and other products taken from the
sea by its vessels; and also, in the ease of Bulgaria, Czech
Republic, Hungary, Russian Federation and Slovakia, by vessels
chartered by India;
|
| |
(g) |
Products
made on board its factory ships exclusively from the products
referred to in (0 above; and also. in the case of Bulgaria,
Czech Republic, Hungary, Russian Federation and Slovakia,
factory ships chartered by India;
|
| |
(h) |
Used
articles collected in India fit only for the recovery of raw
materials; |
| |
(i) |
Waste
andscrap, resulting from manufacturing operations conducted
in India; and |
| |
(j) |
Products
obtained in India exclusively from products specified' in
(a) to (i) above (such as iron sheets & bars produced from
Iron ore; cotton fabrics woven from raw cotton; recovery of
lead from used motor car batteries; recovery of metal from
metal shavings, etc.).
|
| |
European
Union, Norway, Poland and Switzerland have defined terms "vessels"
or "factory ships", used in (f) & (g) above, in detail.
|
| 7.4 |
New
Zealand accepts goods completely produced in India from imported
un-manufactured raw materials, irrespective of their source,
as wholly obtained.
|
| 8.0 |
SUFFICIENT WORKING OR PROCESSING |
| 8.1 |
Need for sufficient working or processing arises only when
a product is manufactured, either wholly or in part, from
materials, parts or components of imported or unknown origin.
|
| 8.2 |
The donor countries follow two main criteria for achieving
Sufficient Working or Processing. These are PROCESS CRITERIA
and PERCENTAGE CRITERIA.
|
| 8.3 |
PROCESS
CRITERIA is followed by 19 countries - 15 member states of
European Union, Japan, Norway, Poland and Switzerland. In
general, sufficient working or processing takes place when
the conditions prescribed for the product in a LIST by the
importing country are fulfilled.
|
| 8.4
|
Conditions
set out in the LIST represent the minimum amount of working
or processing required and the carrying out'of more working
or processing also confers originating status; conversely,
the carrying out of less working or processing cannot confer
originating status.
|
| 8.5 |
PERCENTAGE
CRITERIA is applied by remaining 10 countries - Australia,
Belarus, Bulgaria, Canada, Czech Republic, Hungary, New
Zealand, Russian Federation, Slovakia and the United States
of America (USA). Percentage criteria is applied by Belarus,
Bulgaria, Czech Republic, Hungary, Russian Federation and
Slovakia in terms of maximum value (in percentage terms)
of materials, parts or components of imported. / tin-determined
origin used in the manufacture of export product, while
Australia, Canada, New Zealand and USA apply it in terms
of minimum value (in percentage terms) of the domestic materials
which must be used in the manufacture of the export product.
|
| 8.6 |
It
is important to note that only those materials, parts of components
which are of imported / unknown origin are to be subjectd
to sufficient working or processing for the finished product
to be considered as originating in India. In other words,
materials, parts and components that are wholly obtained in
India need not be sufficiently worked or processed for the
finished product to be considered originating in India.
|
| |
|
| |
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