Rules of Origin (RoO)
Rules of Origin are criteria used to determine the national source of a product. In FTAs, RoOs prevent "tariff shopping" — where goods from a third country are minimally processed in an FTA partner to claim preferential duties. Strict or poorly designed RoOs can limit FTA utilisation.
- WTO Agreement on Rules of Origin (Uruguay Round, 1994) provides a multilateral framework
- FTA-specific RoOs typically require a minimum "value addition" threshold (e.g., 35–40% of ex-factory price) or a "change in tariff heading" criterion
- India's FTAs have been criticised for loose RoOs that allow third-country goods (especially Chinese components) to enter via FTA partners
- India's Ministry of Commerce introduced stricter RoO norms for several FTA partners from 2020–2023
● Tracked since April 20, 2026 · last seen July 24, 2026 · updates as the daily brief publishes
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