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International Relations GS 2 In the news 28 times

Rules of Origin

the Gatekeeper for Duty-Free Access

Rules of Origin (RoO) are the criteria under an FTA that determine whether a good qualifies as "originating" in a partner country and is therefore eligible for preferential tariff treatment, preventing third countries from routing goods through the FTA partner to evade duties (trade deflection).

Key details
  • Two broad origin tests: wholly obtained (natural products entirely produced/extracted in the partner country) and substantial transformation (sufficient processing to cause a change in tariff sub-heading, CTSH)
  • Most Indian FTAs additionally require a minimum Regional Value Content (RVC), commonly in the 35-40% range of FOB value
  • Certificates of Origin, verified by designated issuing authorities, are the compliance instrument customs authorities check at the border
  • Strict RoO have been a persistent Indian negotiating concern since the ASEAN FTA episode, where liberal rules were seen to have enabled tariff-hopping via ASEAN
In the news

● Tracked since February 10, 2026 · last seen September 21, 2026 · updates as the daily brief publishes

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