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

Regional value content requirement governs preferential duty relief under AIFTA when supported by certificate of origin.
For the cited chemical HS codes, an approximate 35% Regional Value Content is required under AIFTA to qualify for preferential tariff treatment; the supplier must provide an AIFTA Certificate of Origin to secure the Basic Customs Duty concession, with concomitant removal of the Social Welfare Surcharge and availability of IGST credit.