The government has proposed modifying the procedures for determining the origin of goods traded at preferential duties, to align the country’s laws with the requirements of the new trade agreements being negotiated. The amendment is expected to expedite the negotiation process for the Free Trade Agreements (FTAs) with the UK, which uses self-certification and issues certificates of origin through chambers of commerce.
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The Finance Bill recently presented in Parliament proposes an amendment to the Customs Act to align with new trade agreements. The amendment will allow the acceptance of different types of proof of origin for goods traded under preferential duties, reflecting the self-certification system in these agreements. The amendment is expected to expedite the negotiation process for Free Trade Agreements (FTAs) with the UK, which uses self-certification and issues certificates of origin through chambers of commerce.
Currently, importers must present a certificate of origin to qualify for concessional tariffs under free trade pacts. This certificate verifies that the value added in the partner country meets the minimum limit set by the agreement. Importers also need to declare how the origin criteria, including regional value content and product-specific rules, are met. These certificates of origin are issued by designated agencies in the exporting countries. In India, this task is handled by the Export Inspection Council of India, the Indian Chamber of Commerce, the Trade Promotion Council of India, and a few other designated offices.
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