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India-Singapore Comprehensive Economic Cooperation Agreement (CECA)

The Comprehensive Economic Cooperation Agreement (CECA) between India and Singapore was signed on 29th June, 2005 by the Prime Minister Mr. Manmohan Singh and H.E. Mr. Lee Hsien Loong, Prime Minister of Singapore. The CECA has become operational with effect from 1-8-2005.

This landmark agreement is India’s first ever CECA and Singapore’s first comprehensive bilateral economic agreement with a South Asia economy. It also marks the first time that Singapore has included taxation agreement discussions in the process.

Singapore based exporters will enjoy tariff elimination or reduction in 75% of Singapore’s domestic exports. The key sectors to enjoy tariff concession include electrical and electronics, instrumentation, pharmaceuticals and plastics.

Singapore and India signed the Protocol to amend the CECA for further tariff concessions for Singapore’s exports to India. An additional list of tariff concessions was released on 15 January 2008. Under the agreement, goods such as base metal, machinery and mechanical appliances, chemicals, plastic and rubber articles and textile and textile articles will enjoy reduced tariffs.

The general rule of origin is a combination of 40% local content and a change in tariff classification at the 4 digit level. CECA provides for a list of products which are exempt from the general rule.

CECA provides advance rulings on the eligibility of originating goods for preferential tariffs and tariff concession. This will provide exporters with greater certainty on the status of goods at the country of import.

Exporters can also look forward to Mutual Recognition Agreements to avoid duplicate testing and certification of products for entry into respective markets. The telecommunications sector is on key area being looked into.

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