CBIC Amends Customs Circular to Replace 'Certificate of Origin' with 'Proof of Origin' under CAROTAR, 2020

The Central Board of Indirect Taxes and Customs (CBIC) has amended its customs circular to replace the mandatory submission of a Certificate of Origin with a Proof of Origin under the Customs (Administration of Rules of Origin under the Trade Agreements) Rules, 2020 (CAROTAR 2020). This amendment aims to streamline the customs clearance process and reduce the compliance burden for importers while ensuring the authenticity of goods claiming preferential treatment under trade agreements. The shift from a formal certificate to a more flexible proof of origin mechanism is expected to facilitate smoother trade flows and expedite the release of consignments. Importers will now need to maintain adequate documentation to substantiate the origin of the goods as per the CAROTAR 2020 regulations, emphasizing greater responsibility on the importing community.