On 8/4/2008 the Indian government has granted privilege to trade for voluntary exporti of goods for all 49 Least Developed Countries (LDCs) including Lao PDR. The privilege is to be implemented as tariff exemption and unlimited quotas for LDCs in the spirit of the Doha Development Round of Trade Negotiations meeting at Minister level organized by the WTO which was held in Hong Kong, China in the year 2005.
These cover 92.5% of the total number of Indian goods for tariff exemption, based on its 6 digit code (HS 6 digit) including 85% of agricultural products (0%). In the positive list there are about 458 products in total or equal to 9% and tariff rate of those products will decrease each year from the normal tariff rate (MFN), by 20% in 2009, 40% in 2010, 60% in 2011, 80% in 2012 and 100% for the year 2013 which means that the positive list will achieve a tariiff reduction to 0% within 5 years ( 2008-2013 ).
There are 326 items in the Exclusion List or equal to 6% that India is still taking into account (not to reduce the tariff rate) such as: chapter 2 (meat) ; chapter 7 (plants) ; chapter 9 (coffee, tea) ; chapter 10 ( cereal); chapter 24 (tobacco) ; chapter 72 (steel); chapter (copper) and chapter 87 (vehicle).
Apart from using the voluntary privilige privileged offer to LDCs, Laos exporters can obtain privileges under the ASEAN-India and Asia-Pacific Free Trade Agreement, for which date will be compiled data separately. (Click here for details)
Rules of Origin : ROO
Exporter must comply the as origin criteria to ensure that goods obtain GSP treatment by India. Exporter must obtain a Certificate of Origin (called Form DFTP).
The implementation of the Rules of Origin is as follows :
1. Wholly Obtained or Produced: WO.
2. Non Wholly Obtained or Produced : NWO, which is of 2 types :
a. Not exceeding 70% of the FOB value for imported raw materials or the local value added of products for Exporting Country or Lao PDR is at least 30% of the F.O.B value;
b. Processing products have undergone substantial transformation which produces a Change in Tariff Heading: (CHT) at 4 digit levels between the imported raw materials and processing products.
India will considered [an importation] a direct consignment in the case of transit through third country, when the products have not undergone any operation other than unloading and reloading or any operation required to keep them in good condition and the products have remained under customs control in the country of transit.
The system of privileges apply to all goods under the list of tariff exemptions and listed in Form DFTP.
Certificate of Origin
Products that will be privileged have to be covered by the preferencial list and meet ROO requirements strictly, by having the CO as a reference. The CO used for tariff exemption or reduction is Form DFTP.
Form DFTP can be obtained from the Department of Import and Export or Industy and Commerce of Provincial and Vientiane Capital or Specific Economic Zone Vientiane-Nonthong.
Documents needed to request a Certificate of Origin:
1.) Application letter
2.) Certificate of Origin Form
3.) Invoices and Packing list
4.) Customs Declaration
5.) True copy of Bill of Lading
6.) Domestic Invoices (in case of buying)
7). Cost statement or working’s process (in case of imported raw materials)
For more informations
Information on India’s GSP and Rules of Origin can be found at :
Certificate Of Origin Division, Department of Import and Export, Ministry of Industry and Commerce
Tel/Fax : 021 450 255
Website : http://www.laotradeportal.gov.la