AIFTA related problem

[Rahul Lohia]

Dear Sir,

We would like to import chemical from Thailand under free trade duty.

We would like to understand that how much in terms of percentage should be used as a local raw material of Thailand in processing or manufacturing the particular chemical.

Say 50% or 60% or any other percentage.

Is there some formula pricing wherein we can calculate our selves the right percentage to avoid problems.

Request you to please check and update.

AI Summary

Understanding Duty-Free Chemical Imports: 35% Regional Value Content Required Under AIFTA for HS Codes 28258000, 28259090 A discussion on a forum addresses a query about importing chemicals from Thailand under the ASEAN-India Free Trade Agreement (AIFTA). The inquirer seeks clarity on the percentage of local raw material required for duty-free import. A respondent indicates that a 35% regional value content (RVC) is generally necessary for most products, including those with specified HS Codes 28258000 and 28259090. To benefit from the 10% Basic Customs Duty waiver and remove the Social Welfare Surcharge, an AIFTA Preferential Tariff certificate from the Thai supplier is essential, and Integrated Goods and Services Tax (IGST) credit will be available.