FTA Benefit Eligibility for FOC Imports

[Sudhir M]

Can FTA benefits be availed when importing goods as Free of Cost (FOC), while paying customs duty on the commercial value? The concern is that we need to satisfy the Regional Value Content (RVC) requirement under FTA, which is based on the FOB value of the goods. However, in this case, the actual value is nil, whereas for customs duty payment purposes, we will use a commercial value.

AI Summary

Eligibility for FTA Benefits on Free of Cost Imports Under India-Korea CEPA: Understanding RVC and Compliance Requirements. A discussion on a forum addressed the eligibility for Free Trade Agreement (FTA) benefits when importing goods as Free of Cost (FOC) under the India-Korea Comprehensive Economic Partnership Agreement (CEPA). The main concern was whether the Regional Value Content (RVC) requirement could be satisfied, given that goods have a nil value when imported FOC. It was clarified that FTA benefits can still be availed if customs duties are paid based on the commercial value, which is used for RVC calculations. Proper documentation and compliance with CEPA rules, including recent amendments, are essential for validation and eligibility.