Exemptions specified in a Free Trade Agreement (FTA) with regard to the country of origin would prevail in case of a conflict between the revenue department and an importer.



The Central Board of Indirect Taxes and Customs said customs field officers should be sensitive to applying CAROTAR and maintain consistency with the provisions of relevant trade agreement or its Rules of Origin.



  • Customs (Administration of Rules of Origin under Trade Agreements) or CAROTAR Rules, came into effect from September 21, 2020.
  • It empowers officers to seek further information from an importer, consistent with the trade agreement, in case the officer has reasons to believe that the country-of-origin criteria have not been met.
  • Where the importer fails to provide the requisite information, the officer can make further verification consistent with the trade agreement.