To seek inputs for Review of India-Korea CEPA Product Specific Rules (PSRs)
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Dear Sir/Members,
CHEMEXCIL is in receipt of communication from the Department of Commerce (DoC), informing on the review process of the India-Korea CEPA is going on.
It has decided to conduct extensive consultations with the trade and industry sectors.
Please note that Product Specific Rules (PSRs) on all tariff lines are being negotiated as part of this agreement. Currently twin criteria of CTSH + RVC 35% (General Rule) is applicable in most of the lines pertaining to chemical division.
DoC has informed that , maintaining a twin criteria may not be feasible, especially for producers and exporters which are operating in the downstream segment of this sector. Moreover, the PSRs which both the sides have arrived at, as a possible landing position, are such that they address Industri’s concerns regarding sufficient production and value addition. The attached excel sheet gives a line-by-line explanation of the same.
The Korean side had also proposed to have another alternative of a Chemical process rule. DoC have managed to convince the Korean side to drop the chemical reaction rules, despite this being a very common element in Korea's modern FTAs.
DoC has shared the excel sheet, which contains line-by-line explanation of the landing zone which both India and Korea have arrived at.
In view of the above, members are requested to provide the information with respect to the following pointers:
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Suggested changes, if any, in the PSR position & proposals for all the tariff lines pertinent to your chemicals in the enclosed sheet.
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Also please include any remarks/Views/comments/suggestions.
Please provide the comments/inputs by 11.09.2024 on dd@chemexcil.in with a copy to ad.del@chemexcil.in; pw@chemexcil.in; dg@chemexcil.in for onward communication and department can finalize our positions at the earliest.
Thanks and regards
Raghuveer Kini
Director General
CHEMEXCIL
Encl : Chemical Div. Lines