Rules of Origin
The Key to FTA Utilisation
Rules of Origin (RoO) are criteria used to determine the national source of a product in international trade. Under FTAs, only goods that meet specified origin criteria qualify for preferential tariff rates. The complexity of RoO is the single biggest barrier to FTA utilisation in India, as small exporters often lack the documentation capability or understanding to claim preferences. RoO prevent trade deflection — where non-member countries route goods through FTA partners to exploit preferential tariffs.
- RoO types: value addition criterion (minimum domestic value added, typically 35-40%), change in tariff classification (CTC), and process-specific rules
- Certificate of Origin: document issued by designated authorities (DGFT in India) certifying a product's origin
- India's RoO concerns: Chinese goods routed through ASEAN under India-ASEAN FTA led to India's exit from RCEP in 2019
- RCEP (Regional Comprehensive Economic Partnership): India withdrew in November 2019 citing concerns about cheap Chinese imports
- Self-certification of origin being piloted under newer FTAs to reduce compliance burden
● Tracked since February 19, 2026 · last seen July 20, 2026 · updates as the daily brief publishes
See it in today’s brief.
Daily current affairs with every static concept explained in place.
Read the daily brief