DGFT Amends Foreign Trade Procedures for India-EFTA TEPA, Easing Certificate of Origin Process

DGFT Amends Foreign Trade Procedures for India-EFTA TEPA, Easing Certificate of Origin Process

Issue: To simplify and expedite the implementation of the India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA), the Directorate General of Foreign Trade (DGFT) amended the Foreign Trade Procedures (FTP) specifically concerning the issuance of the Certificates of Origin (CoO).

Facts:

• The India-EFTA TEPA is a significant free trade agreement that grants preferential tariff treatment to goods originating from India.
• To claim this benefit, exporters must obtain a valid CoO, which certifies that the goods meet the Rules of Origin criteria defined in the agreement.
• The DGFT needed to streamline the procedural steps for exporters to obtain this essential document and adhere to the TEPA’s requirements.

Decision:

The Directorate General of Foreign Trade (DGFT) amended the Foreign Trade Procedures to simplify the process for applying for and issuing Certificates of Origin under the India-EFTA TEPA.

Key TakeDowns:

• Focus on Simplification: The procedural amendments aim to reduce the time and documentation required for exporters to obtain the CoO, making the benefit of preferential tariffs more accessible.
• Operationalizing the TEPA: This step is crucial for the operational launch of the TEPA, ensuring that the necessary documentary infrastructure is in place for Indian goods to access the EFTA markets (Switzerland, Norway, Iceland, and Liechtenstein) at lower or zero duty rates.
• Certificate of Origin (CoO) Importance: The CoO is the core document that confirms the goods meet the specific Rules of Origin criteria outlined in the trade pact. The simplified procedure helps exporters quickly comply with this requirement.
• Impact on Exporters: By easing bureaucratic hurdles related to documentation, the DGFT is directly enhancing the competitiveness and ease of doing business for Indian exporters in high-value European markets.