ASEAN and INDIA

OVERVIEW OF ASEAN
The Association of Southeast Asian Nations(ASEAN) is
a regional organisation comprising ten Southeast Asian states
which promotes intergovernmental cooperation and
facilitates economic integration amongst its members.
It was formed on 8th August 1967 by the signing of the
Bangkok Declaration.
 Primary aims of ASEAN

To accelerate the economic growth, social progress and

cultural development in the region through joint
endeavors
To promote regional peace and stability through abiding
respect for justice and the rule of law
 MEMBERS
S.No Member
1 MALAYSIA
2 SINGAPORE
3 THAILAND
4 VIETNAM
5 MYANMAR
6 INDONESIA
7 BRUNEI DARUSSALAM
8 LAO PEOPLES DEMOCRATIC REPUBLIC
9 CAMBODIA
10 PHILIPPINES
 INDIA and ASEAN
India became a Sectoral Partner of the ASEAN in 1992,
Dialogue Partner in 1996 and Summit Level Partner in 2002.
The relationship was upgraded into a Strategic Partnership in
2012.
2017 is a landmark year for ASEAN and India relations
because:
(a) 25 years of dialogue partnership
(b)15 years of India-ASEAN dialogue at the summit level-
i.e. between the heads of government
(c)5 years of strategic partnership
 Relevant Customs Notifications
(i) Notification 189/2009-Customs(N.T) dated 31.12.2009
It prescribes the rules for the determination of origin of goods
under the Preferential Trade Agreement between the
Governments of Member States of ASEAN and India.
There are a set of 13 rules prescribing the criteria for
determination of country of origin in AIFTA(ASEAN-India Free
Trade Area).
(ii)Notification 46/2011-Customs(T) dated 01.06.2011:
It covers the list of goods (based on Customs Tariff Heading)
which are granted preferential tariff on Basic Customs Duty
on import from ASEAN countries at specified rate.
Sony India Private Ltd and Sony EMCS
Malaysia-DRI(Mumbai) case
Misstatement of origin of PCB modules which were in fact
assembly of mainly non-originating components
Inflation of profits arbitrarily to meet requisite value addition
norms
Computation of RVAC(Regional value added content)based on
FOB value of non-originating material and not on CIF value as
prescribed under the rules
Addition of inflated non-material or miscellaneous costs
Mark up of 1% to the cost of TV without satisfactory explanation
Fixation of transfer pricing arbitrarily so as to meet 35% value
addition norms
 Final Settlement order
Value of impugned goods :6017 crores
Order dated 02.03.2017 :
(i) Duty:Rs 371 crores
(ii)Penalty:32 crores
(iii) Interest: As applicable
Sony India has paid up the entire amount as ordered in the
Settlement Commission order.