The Finance Ministry has notified the rules for determining the origin of goods under the India–United Kingdom Comprehensive Economic and Trade Agreement (CETA), paving the way for the trade pact to come into force on July 15.
The rules, issued by the Central Board of Indirect Taxes and Customs (CBIC), establish the framework for determining whether goods qualify for preferential tariff treatment under the agreement and prescribe compliance requirements for exporters and importers.
According to the notification, titled the Customs Tariff (Determination of Origin of Goods under the Comprehensive Economic and Trade Agreement between India and the United Kingdom of Great Britain and Northern Ireland) Rules, 2026, the provisions will take effect from July 15, 2026.
Under the notified framework, a product will qualify as originating in India or the United Kingdom if it is wholly obtained in either country, produced entirely from originating materials, or manufactured using non-originating inputs while meeting the product-specific rules of origin specified under the agreement.
A certificate of origin will remain the primary document for claiming preferential tariff benefits under CETA. The rules provide that authorized entities in both countries will issue certificates of origin and origin declarations required to claim duty concessions.
The framework also incorporates a cumulative origin provision, allowing originating materials from one partner country to be treated as originating in the other when used in subsequent production. The provision is expected to facilitate integrated supply chains between India and the UK and enhance bilateral manufacturing cooperation.
To prevent the misuse of tariff preferences, the rules contain safeguards against goods from third countries accessing benefits under the agreement.
Goods transiting through non-signatory countries will retain their originating status only if they remain under customs supervision and are not subjected to production or processing, except for operations necessary for transportation, storage, preservation, labelling, or logistics.
The notification further clarifies that minor operations such as simple repackaging, relabelling, washing, sorting, polishing, simple assembly, and similar processes will not be sufficient to confer originating status on a product.
Customs authorities have been empowered to verify origin claims and deny preferential tariff treatment if imported goods fail to satisfy the prescribed rules of origin.
The rules also provide relief to importers who fail to claim preferential tariff treatment at the time of import. Such importers may apply for a refund of excess customs duty paid, provided the goods qualify under the agreement and the claim is submitted within the stipulated time frame.
To ensure compliance, importers claiming preferential treatment will be required to maintain supporting records for at least four years, while exporters and manufacturers must preserve origin-related documents for a minimum of five years.