India — Rules of Origin & FTAs

India's rules of origin regime operates on two statutory tiers: non-preferential origin (for applying most-favoured-nation (MFN) rates, trade-remedy measures, and marking requirements) and preferential origin (for reduced or zero tariffs under free trade agreements (FTAs) and other trade agreements). The foundational statutes are the Customs Act, 1962 (52 of 1962) and the Customs Tariff Act, 1975 (51 of 1975).

## Administration

Central Board of Indirect Taxes and Customs (CBIC), an arm of the Ministry of Finance, administers customs law and enforces rules of origin at India's ports and inland customs stations. CBIC issues the customs notifications that prescribe preferential rates of duty and publishes the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR 2020), which govern verification and importer due-diligence obligations for all FTA claims.

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, administers the Foreign Trade Policy and the Handbook of Procedures. DGFT does not determine origin per se, but its IEC (Importer-Exporter Code) registration system and import-policy classification (free/restricted/prohibited by HS code) create the framework within which CBIC Customs assesses duty and enforces origin rules.

## Non-preferential rules of origin

For goods imported under MFN treatment or subject to anti-dumping, countervailing, or safeguard duties, India applies non-preferential rules of origin. These rules determine the country of origin for purposes of trade-remedy measures, quota administration, government-procurement origin requirements, and marking. The Customs Tariff Act, 1975 empowers the Central Government to make such rules, but a single codified set of non-preferential origin rules applicable to all goods has not been notified as of May 29, 2026. Instead, CBIC Customs applies the principles laid down in the WTO Agreement on Rules of Origin (in force for India since January 1, 1995) and ad-hoc criteria published in trade-remedy investigation reports and CBIC circulars.

Unable to confirm as of 2026-05-29 whether India has notified comprehensive non-preferential rules of origin under Section 5 of the Customs Tariff Act, 1975 that replace the gap-filling reliance on WTO principles.

## Preferential rules of origin under trade agreements

India's preferential origin framework is detailed and agreement-specific. Section 5 of the Customs Tariff Act, 1975 authorises the Central Government to notify rules of origin "for the purposes of any agreement or other arrangement with any country or territory … for according preferential treatment to goods imported from such country or territory." Each FTA or preferential trade agreement (PTA) has bespoke rules notified in the Official Gazette. Examples include:

• India–Sri Lanka FTA (notified 2000, updated periodically)
• India–ASEAN Trade in Goods Agreement (AITIGA, notified 2009)
• India–Korea Comprehensive Economic Partnership Agreement (CEPA, notified 2009)
• South Asian Free Trade Area (SAFTA, under the SAARC framework)
• Duty Free Tariff Preference (DFTP) Scheme for Least Developed Countries (notified 2015, expanded 2014 to cover ~98.2% of India's tariff lines)

Preferential rates themselves are notified under Section 25 of the Customs Act, 1962, referencing the specific agreement.

## CAROTAR 2020: the due-diligence and verification framework

On September 21, 2020, CBIC brought into force the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR 2020, Notification No. 81/2020-Customs (N.T.) dated August 21, 2020). CAROTAR 2020 was enacted following the insertion of Chapter VAA (Section 28DA) into the Customs Act, 1962 by the Finance Act, 2020. This legislative change responded to concerns that FTA imports were rising sharply and that undue claims of preferential treatment were harming domestic industry.

Key obligations under CAROTAR 2020

Rule 3 requires every importer claiming a preferential rate to:

1. Declare in the Bill of Entry that the goods qualify as originating.
2. Indicate the tariff notification granting the preference.
3. Produce a valid certificate of origin (CoO) covering each item.
4. Enter CoO details (issuing authority, reference number, date) in the Bill of Entry.

Rule 4 imposes a due-diligence obligation: the importer must possess information (in the format of Form I annexed to CAROTAR 2020) demonstrating how the goods satisfy the origin criteria—regional value content, product-specific rules (PSRs), change-in-tariff-classification tests—and must retain all supporting documents for at least five years from the date of filing the Bill of Entry. Customs may request this information at any time; the importer must "exercise reasonable care to ensure the accuracy and truthfulness" of the information.

Rule 5 permits Customs to requisition origin-related information from the importer (with 10 days to respond). If the importer fails to provide the information or if Customs has reason to believe the origin criteria are not met, Customs may initiate verification with the Verification Authority (the designated agency in the exporting country). Preferential treatment may be suspended pending verification, though Customs may provisionally clear the goods against security equal to the duty differential.

Rule 7 allows the Principal Commissioner or Commissioner of Customs to reject other claims for identical goods from the same exporter or producer without further verification, once it is determined that a particular shipment did not meet origin criteria. Preferential treatment is restored prospectively only after the importer or exporter demonstrates that manufacturing conditions have been modified.

CAROTAR 2020 applies to all imports claiming preferential duty under any trade agreement to which India is a party. It does not replace the agreement-specific origin rules (those remain in force and define what qualifies as originating); instead, it standardises the procedural framework for claiming, verifying, and denying preferential treatment.

Source: Customs Act, 1962 (March 30, 2022 version) Source: Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 Source: CAROTAR 2020 presentation (Bangalore Customs)

India's preferential trade agreements impose substantive origin tests on goods claiming preferential duty treatment. These tests vary by agreement, but most India FTAs—including the India-ASEAN Free Trade Agreement (AITIGA), the India-Korea Comprehensive Economic Partnership Agreement (CEPA), and the South Asian Free Trade Area (SAFTA)—deploy a combination of regional value content (RVC) thresholds, change-in-tariff-classification (CTC) rules, and product-specific rules (PSRs) to determine whether a good qualifies as originating.

## Alternative origin tests: RVC or CTC

Under AITIGA (in force January 1, 2010), a good qualifies as originating if it satisfies either of two tests:

1. Regional value content of at least 35 percent, calculated on a FOB basis using the direct or indirect method (the exporting Party must declare which method it applies and notify changes at least six months in advance); or
2. Change in tariff classification at the HS four-digit heading level, meaning that all non-originating materials used in production have undergone a change to a different four-digit heading in the Harmonized System from the heading of the finished good.

The 35 percent RVC threshold applies across most goods in AITIGA. The agreement defines AIFTA content (the originating portion) as the proportion of the FOB price attributable to originating materials (including materials originating in India or any ASEAN Member State) plus the direct cost of processing performed in the exporting Party. India and each ASEAN Party must adhere to one calculation method—direct (summing the value of originating materials and processing costs, then dividing by FOB) or indirect (starting with FOB price, subtracting the CIF value of non-originating materials, and dividing by FOB)—to promote transparency and consistency.

## Product-specific rules

Many India FTAs overlay product-specific rules (PSRs) that specify tailored tests for particular HS headings or chapters. AITIGA Annex 2 Appendix B contains PSRs for textiles, apparel, chemicals, and other sensitive sectors. For example:

• Textiles (Chapters 50–63): PSRs often require that yarns be produced in an AITIGA Party (a "yarn-forward" rule) or that fabrics undergo dyeing, printing, or finishing operations in the exporting Party, in addition to the CTC or RVC alternative test.
• Chemicals and plastics (Chapters 28–39): Many headings specify that non-originating materials must shift from a different HS chapter (a chapter change) rather than merely a heading change, tightening the CTC test.
• Machinery and electronics (Chapters 84–85): Some PSRs require assembly operations that confer essential character, or impose higher RVC thresholds (40 or 45 percent) for specified tariff lines.

When a PSR applies, the importer must satisfy both the general origin criterion (35% RVC or CTC at the heading level) and the PSR. If the PSR specifies a higher RVC threshold or a more stringent CTC test, that stricter standard governs.

## Cumulation and wholly obtained goods

AITIGA and other India FTAs permit cumulation: materials originating in any Party to the agreement count as originating materials when used in production in another Party. For example, Indian steel exported to Thailand and incorporated into a Thai machine qualifies the steel portion as "originating" when the machine is exported to India under AITIGA preferences, provided the machine itself meets the applicable origin test.

Goods wholly obtained in a single Party—agricultural products harvested, minerals extracted, live animals born and raised, fish caught in territorial waters or the EEZ, or goods manufactured exclusively from such inputs—qualify as originating without reference to RVC or CTC tests.

## De minimis tolerance

AITIGA incorporates a de minimis rule: non-originating materials that do not satisfy the CTC requirement are nonetheless disregarded if their aggregate value does not exceed 10 percent of the FOB price of the finished good. This tolerance does not apply to goods in HS Chapters 50–63 (textiles and apparel), where stricter fiber-forward or yarn-forward rules apply and the de minimis threshold may be lower or absent under the PSR.

## Calculation basis and operational points

For RVC calculation, the FOB price of the exported good is the denominator. Freight, insurance, and other post-export costs are excluded. The numerator under the direct method sums the CIF value of originating materials (including materials originating in any AITIGA Party) and the direct labor and overhead costs incurred in the territory of the exporting Party. Under the indirect method, the numerator is FOB price minus the CIF value of all non-originating materials.

Accessories, spare parts, and tools delivered with machinery or equipment and invoiced together are treated as part of the good; their originating or non-originating character is included in the RVC calculation or CTC analysis.

Packing materials and containers for retail sale (classified with the good under GRI 5 of the Harmonized System) are included in the origin determination. Shipping containers and transport packing are excluded.

## Verification and importer obligations under CAROTAR 2020

Even when a good qualifies under these substantive tests, the importer must comply with CAROTAR 2020 (Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020) procedural requirements: produce a valid certificate of origin issued by the exporting Party's designated authority, declare the preference in the Bill of Entry, and retain documentation—including the RVC calculation worksheet (in Form I under CAROTAR 2020) and supplier declarations for originating materials—for at least five years. Customs may request this evidence at any time and may verify the origin claim with the exporting-country Verification Authority if documentation is insufficient or suspect.

Source: Agreement on Trade in Goods under the Framework Agreement on Comprehensive Economic Co-operation between India and ASEAN, Annex 2 — Rules of Origin for the ASEAN-India Free Trade Area (AITIGA)

Effective March 18, 2025, India amended the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR 2020) via Notification No. 14/2025-Customs (N.T.) to replace the term “Certificate of Origin” (CoO) with the broader “Proof of Origin” throughout the rules and Form I. This change was formally clarified in Circular No. 14/2025-Customs (April 21, 2025), which instructs customs officers and the trade to apply the new terminology and procedures prospectively. The revised requirements are as follows:

## Mandatory obligations under CAROTAR 2020 post-amendment

Every importer claiming preferential duty treatment under any Indian free trade agreement (FTA), preferential trade agreement (PTA), or comprehensive economic (cooperation/partnership) agreement (CECA/CEPA) must now produce proof of origin as prescribed. The obligations under Rule 3 as amended are:

1. Declaration in the Bill of Entry that the goods qualify as originating under the relevant trade agreement.
2. Indication of the tariff notification against each item for which preferential duty is claimed (notification number and date are required).
3. Production of proof of origin covering each item. The accepted proof of origin may include certificates of origin issued by authorities designated in the relevant FTA or, where permitted by the agreement, self-declarations, origin statements, or other formats prescribed by the trade agreement’s operational certification procedures. This change allows more flexibility for exporters from certain partner countries that recognize self-declaration by approved exporters.
4. Entry of proof of origin details in the Bill of Entry, including authorizing body (if any), reference number, date of issue, and the product-specific origin criterion invoked.

Failure to meet any of these criteria will result in denial of preferential claim and assessment at the most-favoured-nation (MFN) rate or other applicable duty.

## Approved issuing or declaring authorities

Each FTA or agreement continues to specify eligible forms of proof and relevant authorities. Indian exporters generally must use the eCoO 2.0 platform, but the amended notification and updated DGFT procedures reflect possible future recognition of self-certification regimes if adopted in India’s FTAs. For imports, the proof must conform to the source country’s procedures (certificate, statement, or other documented format).

## Immediate denial grounds (as amended)

Customs may immediately deny preferences, without initiating verification, if the proof of origin:

• Is incomplete or not in the prescribed format (per the relevant agreement/notification);
• Contains unauthenticated alterations;
• Is produced after validity expiry (where applicable);
• Is attached to goods not eligible for preference under the agreement or not listed in the relevant concession schedule.

These reflect the prior CoO rules unchanged, but amend the terminology to encompass all acceptable forms of proof.

## Practical compliance and transition guidance

Importers and practitioners should ensure compliance with amended terminology and be alert to procedures for new forms of proof under FTA regimes (such as origin statements). Pending guidance on specific agreements, most Indian FTAs continue to require certificates of origin, but parties should monitor further DGFT and CBIC notifications for operational changes. Documentation retention and verification procedures for proof of origin are unchanged: importers must retain all supporting documents for at least five years and comply with requests under CAROTAR Rules 4–7.

Source: Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020, as amended by Notification No. 14/2025-Customs (N.T.) Source: CBIC Circular No. 14/2025-Customs (April 21, 2025)

The India-ASEAN Trade in Goods Agreement (AITIGA)—signed August 13, 2009 in Bangkok and effective January 1, 2010—eliminates or reduces customs duties on most goods traded between India and the ten ASEAN Member States (Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam). Tariff concessions are asymmetric and phased over multi-year implementation schedules that differ by Party and by product track.

India's tariff commitments to ASEAN and ASEAN Member States' commitments to India are set out in Annex 1 to the Trade in Goods Agreement (the "Schedule of Tariff Commitments"). Each Party maintains its own schedule, listing HS codes at the six-digit level and classifying them into one of four tracks:

1. Normal Track (Tracks 1 and 2) — tariff elimination by specified end-dates.
2. Sensitive Track — tariff reduction to floors of 4% or 5% by specified end-dates.
3. Special Products — limited concessions or tariff-rate quotas (TRQs) for designated agricultural goods.
4. Exclusion List — no preferential concessions; MFN rates apply.

## Normal Track: tariff elimination timelines

Normal Track 1 and 2 together are intended to cover approximately 80 percent of each Party's tariff lines. Goods on the Normal Track receive complete tariff elimination (0% duty) according to the following implementation schedules:

India's Normal Track commitments (for ASEAN imports):

• Normal Track 1 (approximately half of India's covered tariff lines): tariffs eliminated by December 31, 2013.
• Normal Track 2 (approximately one-quarter of India's covered tariff lines): tariffs eliminated by December 31, 2016.

According to India's Schedule of Tariff Commitments in Annex 1, India committed to zero tariffs on approximately 74–75 percent of its total tariff schedule applicable to ASEAN goods, with full implementation completed by the end of 2016.

ASEAN Member States' Normal Track commitments (for Indian exports):

ASEAN implementation timelines differentiate between ASEAN-6 (Brunei, Indonesia, Malaysia, the Philippines, Singapore, and Thailand) and CLMV (Cambodia, Lao PDR, Myanmar, and Vietnam) to account for differing levels of development:

• ASEAN-6 (for Indian exports to ASEAN-6): Normal Track 1 tariffs eliminated by December 31, 2010; Normal Track 2 tariffs eliminated by December 31, 2013.
• CLMV (for Indian exports to CLMV): Normal Track 1 tariffs eliminated by December 31, 2013; Normal Track 2 tariffs eliminated by December 31, 2018.

As of January 1, 2019, Normal Track tariffs have been fully eliminated between India and all ASEAN Member States. Goods on the Normal Track therefore enter at zero duty provided the importer produces a valid Certificate of Origin Form AI and satisfies the origin criteria (35% regional value content or change in tariff subheading at the HS four-digit level, as set out in Annex 2 to the Agreement).

## Sensitive Track: tariff reduction to 4% or 5% floors

The Sensitive Track accounts for up to 10 percent of each Party's tariff lines and covers goods deemed sensitive to import competition. Tariff reductions on Sensitive Track items are slower and limited:

• Tariffs are reduced to 4% or 5% (depending on the Party and HS code) by specified end-dates.
• Tariffs are not eliminated; the floor rate remains in force unless a Party unilaterally accelerates its tariff reduction or the Parties agree through the AITIGA Joint Committee review process to transfer specific tariff lines from the Sensitive Track to the Normal Track.

India's Sensitive Track end-dates:

According to India's Schedule in Annex 1, Sensitive Track tariffs were to be reduced to 4% by specified end-dates differing by ASEAN Member State grouping. The latest implementation dates for India's Sensitive Track floor rates were December 31, 2019 (for ASEAN-6) and December 31, 2022 (for CLMV and the Philippines).

ASEAN Member States' Sensitive Track end-dates:

ASEAN-6 and CLMV Member States committed to reducing Sensitive Track tariffs to 5% by end-dates varying by Member State, with CLMV implementation extending to December 31, 2024 for certain tariff lines.

HS Chapters 84, 85, and 87 in the Sensitive Track

India placed a significant number of tariff lines from HS Chapters 84 (machinery and mechanical appliances), 85 (electrical machinery and equipment), and 87 (vehicles and parts thereof) in the Sensitive Track to protect domestic manufacturing capacity in those sectors. The product-specific details of India's Sensitive Track for these chapters are incorporated in Annex 1 to the Agreement.

## Special Products and Tariff-Rate Quotas (TRQs)

Certain agricultural products are classified as Special Products and receive limited preferential treatment. The most commercially significant example is palm oil (HS 1511):

• India grants tariff-rate quotas (TRQs) for crude palm oil and refined palm oil imported from Malaysia and Indonesia.
• In-quota volumes enter at preferential rates that have been phased down toward zero or near-zero levels by specified dates.
• Out-of-quota imports remain subject to higher tariff rates (MFN or other applied rates), effectively capping preferential access and limiting import surges.

The TRQ volumes, in-quota rates, and out-of-quota rates are set out in India's Schedule of Tariff Commitments (Annex 1 to AITIGA). Importers claiming TRQ treatment must present a valid Certificate of Origin Form AI, satisfy origin criteria, and comply with India's TRQ administration procedures (including quota allocation and licensing requirements administered by DGFT).

## Exclusion List: no preferential concessions

Up to 10 percent of each Party's tariff lines may be placed on the Exclusion List. Goods on the Exclusion List receive no tariff concessions under AITIGA; imports are assessed at the MFN rate (or other applicable rate—safeguard, anti-dumping, countervailing duty) regardless of whether the exporter presents a Certificate of Origin.

The AITIGA provides that Parties shall review the Exclusion Lists annually with a view to improving market access (Annex 1, General Notes), but transfer of tariff lines from the Exclusion List to a preferential track requires agreement among the Parties through the Joint Committee process.

India's Exclusion List includes sensitive agricultural and industrial products where import competition was deemed too disruptive to domestic production. Each ASEAN Member State maintains its own Exclusion List, with varying coverage.

## Verification of tariff track and applicable duty rate

To determine whether a specific HS code qualifies for preferential treatment and the applicable AITIGA rate:

1. Consult India's Schedule of Tariff Commitments (Annex 1 to AITIGA) for imports into India from ASEAN, or the exporting ASEAN Member State's schedule for exports from India to that Member State. Schedules are published by India's Export Inspection Council (EIC) and Department of Commerce.
2. Locate the six-digit HS code in the schedule and identify the tariff track (Normal Track 1 or 2, Sensitive Track, Special Products, or Exclusion List).
3. Check the implementation year to determine the current preferential rate. For goods still in transition (Sensitive Track items with end-dates in or after 2019), the schedule specifies the rate applicable in each calendar year through the end-date.
4. Verify origin qualification. Even if the HS code is on the Normal Track with a zero preferential rate, the importer must produce a valid Certificate of Origin Form AI and possess documentation (under CAROTAR 2020 Rule 4) demonstrating that the good satisfies the 35% regional value content threshold or the change-in-tariff-subheading test (or, where applicable, a product-specific rule in Annex 2 Appendix B to AITIGA).

India's CBIC Customs authorities enforce AITIGA preferential rates through tariff notifications issued under Section 25 of the Customs Act, 1962. Importers must cite the applicable tariff notification number in the Bill of Entry when claiming AITIGA preferential treatment.

## Ongoing AITIGA review

At the ASEAN-India Summit in November 2022, the Parties tasked the AITIGA Joint Committee to undertake a comprehensive review of the Agreement to address concerns about asymmetric benefits, underutilization of preferential rates by exporters, inverted duty structures (where tariffs on inputs exceed tariffs on finished goods), complex rules of origin, and non-tariff barriers. As of June 2026, negotiations on the review are ongoing. Any changes to tariff tracks, Exclusion Lists, or origin rules will be notified through amendments to Annex 1 and Annex 2 and will require domestic legislative enactment (in India's case, through updated CBIC tariff notifications under the Customs Act, 1962).

Source: Agreement on Trade in Goods under the Framework Agreement on Comprehensive Economic Co-operation between India and ASEAN (AITIGA), Annex 1 — Schedules of Tariff Commitments Source: ASEAN-India Trade in Goods Agreement (Department of Commerce, Government of India)

The India-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA) was signed on February 18, 2022 and entered into force on May 1, 2022, marking India's first deep free trade agreement in over a decade. The agreement covers trade in goods, rules of origin, trade in services, technical barriers to trade, sanitary and phytosanitary measures, customs procedures, and other areas of economic cooperation.

## Tariff commitments and coverage

Under CEPA, the UAE eliminates customs duties on 97.4% of its tariff lines (7,378 of 7,581 tariff lines), accounting for 99% of Indian exports to the UAE by value. India granted preferential market access covering approximately 90% of UAE exports by value. Both Parties' tariff commitments are set out in Annex 2A (India's schedule) and Annex 2B (UAE's schedule) to Chapter 2 (Trade in Goods) of the Agreement.

Immediate tariff elimination

The UAE provided immediate zero-duty access (effective May 1, 2022) for labour-intensive sectors including:

• Gems and jewellery (HS Chapters 71)
• Textiles and apparel (Chapters 50–63)
• Leather, footwear, and leather goods (Chapters 41–42, 64)
• Plastics and rubber products (Chapters 39–40)
• Furniture (Chapter 94)
• Agricultural and wood products (Chapters 1–24, 44)
• Engineering products (Chapters 72–73, 84–85)
• Pharmaceuticals and medical devices (Chapter 30, 90)
• Automobiles and auto components (Chapter 87)

India's zero-duty concessions cover a smaller share of its tariff schedule, reflecting domestic sensitivities in certain sectors. India placed 2,789 tariff lines (approximately 23% of its tariff schedule) in its Exclusion List, which receive no preferential treatment under CEPA.

Tariff-rate quotas (TRQs)

India granted tariff-rate quotas for specific sensitive products from the UAE, including:

• Polypropylene (HS 3902)
• Copper and copper products (Chapter 74)
• Dates (fresh and dried; HS 0804.10)
• Aluminium and aluminium products (Chapter 76, specified tariff lines)

In-quota volumes enter at reduced or zero preferential rates; out-of-quota imports are assessed at MFN or other applicable rates. TRQ administration (allocation and licensing) is managed by India's Directorate General of Foreign Trade (DGFT) under procedures notified separately. As of October 2024, the India-UAE Joint Committee noted challenges with TRQ allocation procedures; India subsequently amended the allocation process to address stakeholder feedback.

## Rules of origin: 35% value-addition threshold

Goods qualify as originating goods under CEPA if they satisfy the origin criteria in Chapter 3 (Rules of Origin) and Annex 3 (Product-Specific Rules) of the Agreement. The principal origin test is a value-addition threshold of at least 35 percent calculated on the FOB export price.

Value-addition calculation

Article 3.4 of the CEPA defines the value-addition formula:

Value Addition (%) = [(FOB Price – Value of Non-Originating Materials) / FOB Price] × 100 ≥ 35%

Where:

• FOB Price is the free-on-board price of the good when sold for export to the importing Party, excluding international freight and insurance.
• Value of Non-Originating Materials (VNM) is the CIF value (cost, insurance, freight to the port of entry in the territory of the exporting Party) of all materials imported from non-Parties and used in the production of the good, plus the value of any materials of undetermined origin.

Materials originating in India or the UAE count as originating materials and are excluded from the VNM numerator, permitting bilateral cumulation. For example, Indian textiles exported to the UAE and incorporated into UAE-made garments qualify the textile portion as originating when the garment is exported back to India under CEPA preferences, provided the finished garment meets the 35% value-addition test.

Alternative origin criteria

Goods also qualify as originating if they are:

1. Wholly obtained in India or the UAE (e.g., agricultural products harvested, minerals extracted, live animals born and raised, fish caught in territorial waters or the exclusive economic zone, or goods manufactured exclusively from such inputs) under Article 3.3.
2. Produced exclusively from originating materials (i.e., all inputs are themselves originating in India or the UAE).
3. Satisfy a product-specific rule (PSR) listed in Annex 3C (Product-Specific Rules of Origin). Annex 3C prescribes tailored change-in-tariff-classification (CTC) tests or higher value-addition thresholds for specified HS headings or chapters where the general 35% rule alone is deemed insufficient to confer origin. For example, certain chemicals, steel products, and machinery items may require a chapter-level CTC (materials from other HS chapters) or a 40–45% value-addition threshold.

Minimal operations and insufficient processing

Article 3.7 lists operations that are deemed insufficient to confer origin even if the 35% value-addition threshold is technically met. These minimal operations include:

• Preserving operations (refrigeration, freezing, drying, salting) to ensure transport or storage.
• Simple operations such as dusting, sifting, screening, sorting, classifying, sharpening, or cutting.
• Changes of packaging, repacking, breaking-up or assembly of packages.
• Affixing marks, labels, or other distinguishing signs on products or packaging.
• Simple mixing of products (whether or not of different kinds) where one or more components do not satisfy the origin criteria.
• Simple assembly of parts to constitute a complete product.
• Slaughter of animals.

When a good undergoes only these operations (or a combination thereof) in India or the UAE, it does not qualify for preferential treatment, regardless of the calculated value-addition percentage.

## Certificate of origin and verification procedures

Every importer claiming CEPA preferential treatment must produce a valid Certificate of Origin issued by the designated authority in the exporting Party. The CoO format is prescribed in Annex 3E to the Agreement. For Indian exports to the UAE, the following authorities are designated to issue CEPA Certificates of Origin (as of January 6, 2023, per DGFT Appendix 2B):

• Export Inspection Council of India (EIC) and its Export Inspection Agencies (EIAs) — for all goods.
• Marine Products Export Development Authority (MPEDA) — for marine products.
• Textile Committee — for textiles and made-ups.
• Certain Export Promotion Councils (EPCs) and Special Economic Zone (SEZ) authorities on a sector-specific basis.

Indian exporters apply for CEPA CoOs through the Common Digital Platform (CDP) at https://coo.dgft.gov.in (the eCoO 2.0 system, effective January 17, 2025).

For UAE exports to India, the Ministry of Economy of the United Arab Emirates is the designated issuing authority for CEPA Certificates of Origin.

Importers in India must comply with CAROTAR 2020 (Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020) procedural requirements: declare the preference in the Bill of Entry, cite the applicable CBIC tariff notification, produce the CoO, and retain origin-related information (including the value-addition calculation worksheet and supplier declarations) for at least five years. Indian Customs may request this documentation at any time or initiate verification with the UAE Ministry of Economy if the origin claim is in doubt.

## Enforcement and anti-circumvention concerns

At the second meeting of the India-UAE CEPA Joint Committee in October 2024, India raised concerns about surges in imports of silver products, platinum alloy, and dried dates and requested that the UAE verify compliance with origin rules and ensure that third-country goods are not being transshipped through the UAE to benefit from CEPA preferences. The UAE agreed to examine these concerns. CEPA incorporates robust verification mechanisms: either Party may request origin verification from the exporting Party's designated authority; if verification is not completed within 12 months or if the exporting Party fails to provide the requested information, preferential treatment is denied retroactively and the importer must pay the duty differential plus interest under Article 3.14 (Verification and Mutual Administrative Assistance) and Annex 3D (Operational Certification Procedures).

## Relationship to other India FTAs

India-UAE CEPA's 35% value-addition threshold differs from the origin frameworks in other India FTAs. For comparison:

• India-ASEAN (AITIGA) permits a choice between 35% regional value content (calculated across all ASEAN + India) or change in tariff subheading (HS four-digit level).
• India-Korea CEPA and India-Japan CEPA apply a 40% value-addition threshold (calculated as FOB minus VNM, divided by FOB) for most goods.
• India-Mauritius CECPA applies a 35% domestic value-addition threshold similar to India-UAE CEPA.

Practitioners must verify the specific origin rule applicable to each FTA when planning cross-border supply chains. Materials originating under one FTA (e.g., AITIGA) do not automatically qualify as originating materials under another FTA (e.g., CEPA) unless the good itself satisfies the CEPA origin criteria independently.

Source: India-UAE Comprehensive Economic Partnership Agreement, full text (Export Inspection Council of India) Source: India-UAE CEPA enters into force, Press Information Bureau, May 1, 2022 Source: Second meeting of Joint Committee under India-UAE CEPA held, Press Information Bureau, October 2024 Source: [Appendix 2B — List of Agencies Authorized to issue Certificate of Origin [Preferential], DGFT (as on January 6, 2023)](https://content.dgft.gov.in/Website/dgftprod/ad977111-207c-431a-a8cc-54c1754484c0/Appendix%202B%20(Certificate%20of%20Origin%20%5BPreferential%5D)%20as%20on%2006.01.2023.pdf)

Effective March 18, 2025, India amended the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR 2020) via Notification No. 14/2025-Customs (N.T.), replacing all references to “Certificate of Origin” (CoO) with “Proof of Origin” throughout the rules and in Form I. This change was operationalized and prospectively clarified by CBIC Circular No. 14/2025-Customs (April 21, 2025). All references below reflect this updated legal framework.

CAROTAR 2020, as amended, prescribes the stepwise process for the verification, suspension, denial, and appeal of origin claims on imports seeking preferential duty under an FTA. The rules overlay, but do not replace, origin tests defined in each FTA. Administration remains with the Central Board of Indirect Taxes and Customs (CBIC) under Chapter VAA and Section 28DA of the Customs Act, 1962.

## Stepwise verification process (post-amendment)

1. Initial assessment and information request: Under Rule 5, if Customs has “reason to believe” that origin requirements are unmet or supporting documentation is insufficient, the proper officer may request further information (now explicitly using “proof of origin”) from the importer within 10 days. The importer must supply all required evidence in the prescribed Form I.
2. Suspension of preferential treatment: If the importer fails to respond, or information is lacking, Customs may suspend the preferential rate (Rule 5(3)). The goods can be provisionally released against security equal to the duty difference. Preferential treatment is restored only after successful verification.
3. Verification with exporting country: If doubt remains, Rule 6 allows Customs to seek verification from the Verification Authority in the exporting country. “Proof of origin” documentation must be the focus of such verification. Timeframes are prescribed (typically 60 days, but agreement-specific); a non-response or negative finding leads to denial.
4. Deemed denial and final assessment: If verification is negative or incomplete within timelines, preference is permanently denied and the Bill of Entry is reassessed at the most-favoured-nation (MFN) or other applicable rate; the denial is formally notified to the importer.
5. Rejection for repeat/identical goods: Under Rule 7, if Customs has denied origin for an exporter’s goods (after verification), claims for identical goods from that exporter can be denied prospectively until proven changes in production conditions.

## Right to appeal

All denial orders remain appealable under the Customs Act, 1962. The importer may appeal to the Commissioner (Appeals) within 60 days, and further to the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) under Sections 128 and 129. Any security furnished during provisional release may be withheld pending final resolution. Duties and interest are recoverable by Customs if preference is denied, and penalties may apply for willful misdeclaration.

Note: This update harmonizes terminology with Notification No. 14/2025-Customs (N.T.) and Circular No. 14/2025-Customs. Practitioners should ensure all documentation (including appeals) applies the term “proof of origin” in place of the prior “certificate of origin.”

Source: Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020, as amended by Notification No. 14/2025-Customs (N.T.) Source: CBIC Circular No. 14/2025-Customs (April 21, 2025) Source: Customs Act, 1962 (Section 28DA, appeals: Sections 128, 129)

India offers a formal mechanism for obtaining advance rulings on the country of origin of goods under its customs regime. This lets importers, exporters, or their authorized agents seek a written, binding determination on origin questions before import or export, reducing legal ambiguity when applying preferential FTA rates or complying with non-preferential origin requirements.

## Statutory basis and responsible authority

The framework for advance origin rulings is set out in Section 28EA of the Customs Act, 1962 (inserted via Finance Act, 2018; operationalized from 2019). Any person falling within the definition of "applicant" (including importers, exporters, or those with a justifiable cause to request a ruling) may apply for an advance ruling on:

• The origin of goods under notified trade agreements (preferential origin), or
• The country of origin for any purpose under customs law, including non-preferential situations.

Applications are submitted to the Authority for Advance Rulings (AAR) for Customs, as notified by the Central Board of Indirect Taxes and Customs (CBIC). The process and requirements are further laid out in the Customs Authority for Advance Rulings Regulations, 2021.

## Application procedure

• Applications must be filed electronically, through the ICEGATE platform, using the form and documentation specified in Rule 3 and the Schedules to the 2021 Regulations. Each application must be accompanied by a prescribed fee as set by notification.
• The AAR may call for additional information and, if relevant, schedule a hearing.
• Under Section 28F(6), the Authority is required to pronounce its advance ruling "as soon as possible but not later than six months from the date of receipt of application."
• The Authority may decline to admit cases where the question is already pending in customs adjudication or where the same issue has already been ruled upon previously.

## Binding effect and validity

An advance origin ruling delivered under Section 28I of the Act is binding:

• On the applicant;
• On the Customs Commissionerate with jurisdiction; and
• On all subordinate officers in respect of goods and facts stated in the application.

This binding effect holds unless the law, notification, or the subject facts materially change, or if the ruling is found to have been obtained by fraud or misrepresentation (Section 28J).

## Appeal process

Any applicant or customs officer aggrieved by a ruling may file an appeal to the Appellate Authority for Advance Rulings under Section 28KA of the Act, subject to the prescribed time limits and procedures.

## Documentation and operational notes

The Regulations require complete disclosures by the applicant, including product description, origin rationale under the relevant FTA or non-preferential rules, and supporting evidence (such as manufacturing process and bill of materials, where claimed as necessary to assess origin). These documentation standards are specified in Schedules to the 2021 Regulations.

Source: Customs Act, 1962 — Sections 28EA, 28KA (CBIC) Source: Customs Authority for Advance Rulings Regulations, 2021 (CBIC Notification, as amended)

Note: The original statute link could not be replaced due to official site reorganization; the citation remains as authoritative text, but official deep-link for Section 28EA is currently not available as of 2026-05-29. No material change to Indian advance origin ruling law detected since prior version. The section remains current and accurate.

Cumulation governs how origin is conferred on products assembled or transformed using materials from more than one country party to an FTA. Its mechanics—bilateral or diagonal—determine how much flexibility a supply chain has to count components as "originating" for preferential tariff purposes in Indian imports.

## AITIGA (India–ASEAN FTA): Diagonal cumulation Under Annex 2, Article 4 of the ASEAN-India Trade in Goods Agreement (AITIGA), "goods or materials originating in any Party, which are used in the territory of another Party as materials for finished goods eligible for preferential tariffs, shall be deemed to have originated in the territory of the latter Party." This enables diagonal cumulation: origin can be conferred when multiple FTA parties (e.g., Vietnamese semiconductors, Indian steel) contribute value in the final product, as long as each input meets the originating criteria of the Agreement. Every stage must be backed by a valid Certificate of Origin (Form AI, per AITIGA operational certification procedures, Article 5).

Example: Malaysian circuit boards and Indian steel combined in a Singaporean plant to make an appliance qualify as originating from Singapore (under AITIGA), if all non-originating content stays within tolerance, and required rules (like regional value content or product-specific rules) are satisfied and documented by Form AI at each step.

## India–Korea CEPA: Bilateral cumulation only Under Article 6 of the India–Korea CEPA (Comprehensive Economic Partnership Agreement), "goods originating in the territory of either Party, which are used as materials in the territory of the other Party... shall be considered to originate in the territory of the latter." This is bilateral cumulation: only Korean or Indian originating materials qualify. Inputs from Japan or ASEAN—even if processed in Korea—do not contribute toward origin for Indian imports under CEPA.

## Statutory and documentation constraints No India FTA in force explicitly provides for full cumulation (where all processing stages—even those falling short of origin—aggregate to confer origin), and cross-FTA cumulation (counting origin from a country party to a different Indian FTA) is not provided for in the agreements reviewed here. Each agreement specifies documentation: importers must retain the relevant Certificate of Origin for every input cumulated, and—per AITIGA Annex 3, Article 2—Form AI must reference contributing upstream origin when diagonal cumulation is claimed.

## Compliance signals Where diagonal cumulation is available (as in AITIGA), practitioners should: (1) document the originating status of every material at each step in the supply chain, (2) ensure all required Forms AI are cross-referenced in the shipment paperwork, and (3) beware introducing out-of-bloc content above de minimis levels (e.g., Chinese-origin parts), which breaks origin. Where only bilateral cumulation applies (as in CEPA), origin calculations are simpler but less flexible for regional value addition.

Source: India-ASEAN Trade in Goods Agreement, Annex 2, Article 4 & Annex 3 Source: India-Korea Comprehensive Economic Partnership Agreement, Article 6

Note: The original commerce.gov.in CEPA link is now repaired using the Ministry of Commerce's updated official URL. The original EIC India AITIGA PDF remains unreachable; no live government replacement could be located as of 2026-05-29. No material legal change detected in cumulation rules since last update. Section remains accurate.

A key compliance risk in claiming preferential tariffs under India’s FTAs is performing only “minimal operations” that are expressly excluded from conferring origin. Nearly all major India FTAs—such as AITIGA (ASEAN-India), the India-UAE CEPA, and India–Korea CEPA—use a negative list to define which processes are too slight or superficial to qualify a good as originating, even if performed in an FTA country. These lists must be interpreted as defined in each FTA’s rules of origin annex, as there may be variation or additions by agreement.

What are “minimal operations”? The following routine actions, if done alone or in combination and not accompanied by substantial transformation (such as meeting a regional value content (RVC), change-in-tariff-classification, or product-specific rule), do NOT confer origin:

• Preservation to ensure goods remain in good condition for transport or storage (refrigeration, drying, etc.)
• Simple cleaning, washing, painting, ironing, husking, or polishing
• Simple cutting, slicing, slitting, sharpening, or sieving
• Simple mixing of products, whether or not of different kinds, where one or more components does not meet the origin criterion
• Affixing marks, labels, logos, or other distinguishing signs on products or packaging
• Simple assembly of parts into a complete article by screwing, gluing, or similar methods
• Changes of packaging, repacking, or breaking up of consignments

For example, in the ASEAN-India FTA (AITIGA) Annex 2 Article 6, and the India-UAE CEPA Chapter 3 Article 3.7, these and several similar acts are all enumerated as insufficient processes; a finished product that only undergoes these processes in an FTA country remains non-originating and does not qualify for preference.

Legal basis and enforcement Indian Customs, under CAROTAR 2020, incorporates these FTA provisions when assessing origin claims. Customs routinely denies FTA claims—often through verification requests or at the Bill of Entry stage—where importers rely only on such minimal operations. Even if a Certificate of Origin is presented, Customs may verify whether sufficient processing has actually occurred. If Customs determines only insufficient processing has occurred, Rule 7 of CAROTAR 2020 authorizes rejection of origin for all like goods from that exporter until compliance is demonstrated.

Best practices Practitioners should audit manufacturing steps against the “minimal operations” list for each relevant FTA, ensure documentation demonstrates transformation that goes beyond these exclusions (ideally RVC calculations or process flowcharts), and retain supplier declarations and bills of materials. Over-reliance on minimal procedures—even with a certificate of origin—puts the claim at high risk of suspension, denial, and post-clearance audit.

Source: ASEAN-India Trade in Goods Agreement, Annex 2 Art. 6 — Rules of Origin Source: India-UAE Comprehensive Economic Partnership Agreement, Ch. 3 Art. 3.7 Source: CAROTAR 2020, Rule 7

India’s Duty-Free Tariff Preference (DFTP) Scheme, operational since August 13, 2008 and materially updated on July 27, 2015, grants duty-free or reduced-duty market access to exports from 46 notified Least Developed Countries (LDCs) in Asia and Africa. DFTP is not an FTA program; it is India’s non-reciprocal preference scheme implemented under Paragraph 2 of the Procedures for Extension of Tariff Preferences to LDCs recommended by the WTO Hong Kong Ministerial Decision (WT/MIN(05)/DEC), and notified by Department of Commerce (Ministry of Commerce & Industry) under Customs notifications.

## Key origin criteria

To claim DFTP benefits, imported goods must qualify as “originating” in an eligible LDC per the DFTP Rules of Origin, last notified by CBIC via Notification No. 29/2015-Customs (N.T.) dated March 10, 2015, and its amending notifications. The central elements:

• Wholly obtained goods (e.g., crops, minerals, live animals born and raised) are deemed originating if exclusively produced or harvested in the exporting LDC (Rule 3).
• For manufactured goods, a minimum 30% value addition in the exporting LDC (calculated as [Ex-Factory Price – Value of non-originating inputs] / Ex-Factory Price × 100) is required. The cap on non-originating material is thus 70% (Rule 4).
• Cumulative rules: Materials or processing from India, or another DFTP beneficiary LDC, can be cumulated toward the 30% value-add threshold (Rule 5), but third-country materials are limited to 70% maximum.
• Goods must be consigned directly from the beneficiary LDC to India (transshipment allowed if covered by a single through Bill of Lading, with no manipulation except for transport-related offloading).

## Certificate of Origin and claim documentation

Claims must be supported by a Certificate of Origin (CoO) in the form prescribed in Annex III of the DFTP Rules (Notification No. 29/2015-Customs (N.T.)). The competent issuing authority in the exporting LDC must certify origin and declare that the value addition and direct consignment rules are satisfied. The Indian importer must declare DFTP claim in the Bill of Entry, append the CoO, and retain supporting documents for post-entry verification as per CBIC Customs Circular No. 46/2017-Customs (August 24, 2017).

## Covered tariff lines and exclusions

As of the 2015 expansion, DFTP covers approximately 98.2% of India’s tariff lines at 8-digit HS code, excluding 1,140 notified items in the Exclusion List (including certain textiles, agriculture, and base metal categories). Duty reduction, not elimination, may apply to items on the MOP (Margin of Preference) List; only Exclusion List lines remain ineligible for DFTP.

## Practical compliance

Importers sourcing from LDCs should confirm both DFTP beneficiary status (as updated by DGFT and Ministry of Commerce) and explicit coverage of the HS line. DFTP claims are frequently denied for non-compliance with value addition, improper or expired CoO, or mismatch on direct consignment. Violations or misdeclarations are subject to Customs enforcement under the Customs Act, 1962; appeals follow standard customs appellate procedure.

Source: DFTP Scheme — Rules of Origin, Notification No. 29/2015-Customs (N.T.) Source: DFTP Scheme FAQs and operational circular, CBIC

The India–Japan Comprehensive Economic Partnership Agreement (CEPA), signed on February 16, 2011 and in force since August 1, 2011, establishes a tailored set of rules for determining when goods qualify as "originating" and thus eligible for the CEPA's preferential tariff rates. India's trade with Japan is governed by both a general value-addition formula and extensive product-specific rules (PSRs) under the CEPA Rules of Origin annex and operational certification procedures.

## 40% value addition: the core test The baseline origin criterion under India–Japan CEPA (Article 4 and its Annex 2: Rules of Origin) is a minimum 40% value addition on the FOB price of the exported good. The value-addition (VA) is calculated as:

VA (%) = [(FOB – Value of Non-Originating Materials) / FOB] × 100 ≥ 40%

• FOB is the Free on Board export price excluding international freight and insurance.
• Value of Non-Originating Materials (VNM) is the CIF value of all materials imported from third countries (i.e., not India or Japan) used in producing the good, plus any materials with undetermined origin.

If a good meets or exceeds the 40% value-add threshold (using the prescribed calculation method) and all processing occurs in India or Japan, it is eligible for CEPA preference subject to documentary compliance.

## Product-Specific Rules and Change-in-Tariff-Heading (CTH) The CEPA annex overlays product-specific rules (PSRs) for many tariff lines. These PSRs may:

• Impose a stricter value-addition requirement (e.g., 50% for select chemicals, steel, or machinery); or
• Mandate a change in tariff heading (CTH) or change in tariff sub-heading (CTSH) — e.g., all non-originating inputs must undergo a change at the 4-digit or 6-digit HS level upon manufacture in India or Japan.

When both value-addition and CTH are listed as alternatives in a PSR, satisfying either confers origin; however, if both are required, both conditions must be met.

## Cumulation: bilateral, not diagonal India–Japan CEPA permits bilateral cumulation. Materials originating in either India or Japan may be counted as originating for goods produced in the other Party. Inputs from third countries (including ASEAN or Korea) do not count unless the final good independently meets the 40% value-addition rule after including only the India/Japan originating content.

## Minimal operations and insufficient processing CEPA includes a list of processes deemed insufficient to confer origin, such as simple packing, repacking, sorting, marking, or minimal assembly. Even if the 40% VA threshold is technically reached, goods undergoing only these minimal operations do not qualify for preference. (See CEPA Annex 2 Article 5.)

## Certificate of Origin (CoO) and operational certification To claim CEPA preference, the importer must present a valid Certificate of Origin (CoO) in the format prescribed under CEPA Annex 3 (Operational Certification Procedures), issued by designated Indian or Japanese authorities. In India, authorized agencies include EIC/EIAs and sector-specific bodies as notified by DGFT. The CoO must be attached to the Bill of Entry, and CoO details (including origin criterion) must be declared under Rule 3 of CAROTAR 2020.

## Tariff concessions On entry into force, India and Japan each reduced or eliminated tariffs on over 90% of traded goods by value, with phase-out schedules for sensitive sectors. Current schedules of concessions and Products Exclusion/Sensitive Lists are notified on India's Department of Commerce and the Export Inspection Council's (EIC) portal.

For verification, Indian Customs may request supporting documentation, suspend preference, or seek verification from Japan's designated Verification Authority under CAROTAR 2020.

Source: India–Japan Comprehensive Economic Partnership Agreement: Text and Rules of Origin Annex (Ministry of Commerce & Industry, India) Source: DGFT Handbook of Procedures, Appendix 2B: Authorized CoO agencies%20as%20on%2006.01.2023.pdf)

All major Indian free trade agreements (FTAs), as well as the Duty-Free Tariff Preference (DFTP) scheme, impose a “direct consignment” (sometimes termed “direct shipment” or “direct transport”) rule as a core requirement for an origin-based preferential tariff claim. If goods are diverted through or stored in third countries, preferential origin can be lost unless explicit conditions and documentary proofs are met. The specific criteria and required evidence are laid out in the relevant FTA annexes and DFTP rules; details and documentation can vary, and compliance often becomes the focus of customs scrutiny during post-entry audits.

Statutory basis and text

• Under the ASEAN–India Trade in Goods Agreement (AITIGA), direct consignment is governed by Annex 3, Article 4: goods must be consigned directly from the exporting Party to the importing Party. If routed through a third country, the importer must provide evidence (such as a single through Bill of Lading or documentary proof from the customs authority of the intermediate country) that the goods remained under customs supervision, with no processing or manipulation except unloading, reloading, or actions necessary to preserve the goods. (AITIGA Annex 3, Art. 4.2–4.3)
• India–Japan CEPA applies similar rules in Annex 3, Article 4.
• DFTP (Notification No. 29/2015-Customs (N.T.), Rule 6) requires goods to be consigned directly from the beneficiary country to India, permits transshipment under customs supervision, and mandates a certificate (Annex III) from the intermediate country’s authorities showing that no further processing occurred during transit (Rule 6(3)).

Permitted transshipment and documentary requirements Goods routed through third countries are still eligible for preference if:

• They remain under customs control (no manipulation beyond unloading/reloading or necessary preservation).
• For DFTP, a certificate of non-manipulation (Annex III) is submitted when direct transport is broken. For AITIGA and CEPA, documentary evidence may include a through Bill of Lading and, where required, a non-manipulation certificate or a statement from the customs authority at the transshipment port (AITIGA Annex 3, Art. 4.4; India–Japan Annex 3, Art. 4.3).

Indian Customs enforcement and compliance practice Failure to meet direct consignment requirements or to provide required evidence for transshipped goods is grounds for denial of preference under the cited rules. Actual enforcement may differ by port and by Customs officer, but public notifications and the legal text make this a routine compliance check, not a rare exception. Importers should confirm the precise language and listed acceptable proofs in the applicable FTA annex or DFTP notification.

Practical recommendations

• Aim to obtain a single through Bill of Lading from the exporting party to India whenever possible, as expressly recognized by all cited authorities.
• Where transshipment is unavoidable, retain all shipping documentation and, if required by the agreement, a non-manipulation certificate from the intermediate country’s customs.
• Check each FTA’s operational annex: some require explicit certificates for any break in direct shipment, others accept shipping documents alone.

Source: ASEAN–India Trade in Goods Agreement, Annex 3: Operational Certification Procedures (Art. 4) Source: Duty-Free Tariff Preference Scheme for Least Developed Countries, Rule 6 and Annex III, Notification No. 29/2015-Customs (N.T.) Source: India–Japan CEPA, Annex 3: Operational Certification Procedures (Art. 4)

The India–Australia Economic Cooperation and Trade Agreement (ECTA), signed April 2, 2022 and in force from December 29, 2022, is a cornerstone India FTA, establishing substantive and procedural origin requirements, significant tariff concessions, and enforceable operational procedures for both importers and exporters.

## Origin criteria: 35% value addition or change in tariff subheading (CTSH) To qualify as “originating” and claim ECTA preferences for Indian importation (see Chapter 4 of the Agreement):

• The good must be wholly obtained in India or Australia (Art. 4.2), or
• For non-wholly obtained goods, it must satisfy either:

1. Not less than 35% value addition—calculated as [(Ex-Factory FOB – Value of Non-Originating Materials) / Ex-Factory FOB] × 100 ≥ 35% (see Annex 4A, Article 6 and Operational Certification Procedure, Section I, Clause 2.7.2), or
2. Change in Tariff Subheading (CTSH) at the 6-digit HS code level (all non-originating materials must be classified outside the finished good’s code).

Some goods are subject to product-specific rules (PSRs), especially in sensitive sectors (Appendix A to Annex 4A). Where a PSR overlays and differs from the general test, the stricter requirement applies per Operational Procedures Art. 5.2.

## Cumulation, de minimis, and key operational rules

• Bilateral cumulation of Indian and Australian originating materials is permitted (Annex 4A, Art. 5).
• A de minimis rule allows up to 10% (by value, or as specified per heading) of the FOB value of a good to come from non-originating materials not meeting the CTSH rule, except for certain HS chapters excluded per agreement and operational certification procedures (Annex 4A, Art. 7).

## Certificate of Origin (CoO) and documentation Importers must possess a valid CoO in the prescribed format (Annex 4A, Operational Certification Procedures, Section II, Clause 3.1) issued by recognized bodies—Export Inspection Council (EIC) or Export Inspection Agencies (EIAs) for Indian exports, Department of Foreign Affairs and Trade (DFAT) for Australian exports. The CoO and all records substantiating origin claims, including PSR or RVC calculations, must be retained for at least five years, as required by Section II, Clause 3.4 of the Procedures and by India’s CAROTAR 2020 Rules. Indian exporters apply via the eCoO 2.0 digital platform, as notified by DGFT.

## Tariff concessions and exclusions Australia eliminated customs duties on over 96% of Indian tariff lines (notably textiles and apparel [Ch. 50–63], jewelry [71], engineering goods [84–85], and agricultural sectors), while India reduced/eliminated duties over 40% of Australian lines, with further phased reductions. Exclusion and Sensitive Lists are detailed in the annex schedules (Annex 2A & 2B).

## Compliance and verification India’s CAROTAR 2020 rules (CBIC S.O. 4000(E), 2020 and related notifications) fully apply to ECTA claims: importers must produce all supporting documentation upon request and comply with verification procedures under Section 28DA of the Customs Act, 1962 and CAROTAR 2020 Rules 5–7.

Source: India–Australia ECTA—Full Text and Operational Procedures (Department of Commerce, India) Source: CBIC notification 110/2022—ECTA entry into force, tariffs, and origin protocols

Note: Both dead source links replaced with current live URLs confirmed via official Department of Commerce and CBIC sites. No material change detected in core ECTA legal requirements or tariff schedules since prior update; content remains current as of 2026-05-29.

Indian Customs treats goods exported from India and subsequently re-imported after repair, modification, or return under warranty under a distinct regime that differs from standard origin claims under FTAs. The key legal provision is Section 20 of the Customs Act, 1962, which allows for conditional relief from customs duty on re-imported goods—provided evidence shows they are the same goods that were previously exported. However, this regime operates independently of rules of origin for new imports.

Section 20, Customs Act, 1962 (Re-importation) Section 20 provides that goods produced or manufactured in India, when returned after export, are chargeable only with duty of customs (if any) as prescribed by the Central Government and subject to such conditions as are specified by notification in the Official Gazette. Over successive notifications, CBIC has prescribed that “re-imported goods” in specified circumstances (returned after repair, testing, or warranty replacement) may be exempt from basic customs duty (BCD), but are generally liable for IGST and compensation cess where applicable. The exemption is limited to goods exported under a Letter of Undertaking (LUT) or bond without payment of IGST, and within specified timeframes (usually 3 years from export, per Notification No. 46/2017-Customs, as amended).

Origin determination on re-import On re-importation, these goods are not treated as “originating goods” for purposes of FTA preferential duty under any India FTA. Preferential tariff treatment is restricted to goods that qualify as originating in the exporting country/party under the relevant FTA’s origin criteria. There is no provision in India’s major FTAs (including AITIGA, Japan CEPA, Korea CEPA, Australia ECTA, UAE CEPA) for preferential origin or duty-free re-entry for returned Indian goods; where imported for repair and re-exported, any waiver of duty is strictly procedural under Customs Act Section 20 and linked notifications.

Certificate and documentation requirements To avail duty waiver or reduced assessment, importers must submit documentary proof of prior export—typically:

• Copy of original shipping bill and Bill of Export
• Documentary evidence of export (e.g., BRC, EGM)
• Evidence supporting the identity and integrity of the item (matching serial number, description)
• Invoice relating to repair/service performed abroad

Practical compliance notes:

• If any value addition or further manufacturing has occurred outside India, the goods lose Indian origin and no duty waiver applies; normal import regime and origin criteria attach (including FTA or CAROTAR 2020 obligations if preference is claimed).
• Goods not re-imported within the prescribed period or without full documentation are ineligible for exemption.
• No India FTA provides relief for foreign-origin goods exported from India (for processing or warranty) and re-imported. Such goods are not returned as Indian-origin under any regime.

Source: Section 20, Customs Act, 1962 Source: CBIC Notification No. 46/2017-Customs (as amended) Source: CBIC Circular No. 16/2020-Customs

India enforces strict penalties for misdeclaration or fraudulent claims of origin under its free trade agreements (FTAs) and the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR 2020). The Customs Act, 1962, especially Section 28DA and the penalty provisions of Chapters XIV and XVI, provides the statutory basis for assessing back duty, interest, fines, and criminal liability where a preferential duty claim fails or involves willful wrongdoing.

Section 28DA(6) requires that, if Customs determines—after CAROTAR 2020 verification or otherwise—that the goods do not meet FTA origin criteria, any differential duty (i.e., the difference between normal and preferential rates) must be recovered from the importer. Interest is charged under Section 28AA, from the date duty was due until payment.

Section 114 and 114A: If the misdeclaration or default is due to willful misstatement, suppression, or fraud intended to evade duty (e.g., submitting false certificates of origin or intentionally misrepresenting qualifying content), a penalty equivalent to the amount of duties evaded may be imposed under Section 114A. For lesser offenses—such as errors not involving fraud—Section 114 applies, authorizing penalties up to (but not exceeding) the value prescribed for specific contraventions (such as improper export or attempted export of goods, with penalties scaled according to value and nature of offense).

Section 135 criminalizes fraudulent evasion of customs duty, including by means of origin fraud. Where the evaded duty or value involved exceeds INR 50 lakh (as of the latest notification), prosecution may lead to imprisonment up to 7 years (minimum 1 year for severe cases) and/or fine. For lower-value violations, the maximum term is 3 years or fine. The section also covers abetment and attempted evasion.

Failure to maintain or produce supporting documents for origin claims (as required under CAROTAR 2020, Rule 4) may itself trigger penalty and duty recovery under these provisions, regardless of actual fraud.

Importers or agents aggrieved by a penalty or duty demand can appeal as per Sections 128 to 129 of the Customs Act. The law does not distinguish a separate penalty regime specific to FTAs—standard customs penalties apply, scaled to the severity and intent of the violation.

Source: Customs Act, 1962 (Sections 28DA, 114, 114A, 135) Source: CAROTAR 2020