The Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, Ministry of Finance, has issued Circular No. 43/2026-Customs dated September 24, 2026 clarifying the application of Section 28DA of the Customs Act, 1962 and the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 [CAROTAR, 2020] in a manner consistent with the Rules of Origin prescribed under India’s Trade Agreements.
Trade Agreement Rules of Origin to prevail in case of conflict
The CBIC has emphasised that every Trade Agreement contains its own framework for determining and verifying the origin of goods, while Section 28DA and CAROTAR, 2020 provide the domestic framework for implementation of such origin requirements. These domestic provisions must, therefore, be applied in a manner that preserves the intent and framework of the relevant Trade Agreement. Significantly, the Circular reiterates that, in terms of Rule 8(3) of CAROTAR, 2020, where any conflict arises between CAROTAR and the Rules of Origin under the applicable Trade Agreement, the provisions of the Trade Agreement shall prevail.
India–UK CETA: Origin Declaration sufficient—Form-I not required with Bill of Entry
Addressing concerns raised by trade in relation to the India–UK Comprehensive Economic and Trade Agreement (CETA), CBIC has clarified that an Origin Declaration completed by the UK exporter or producer in the prescribed manner constitutes the proof of origin for claiming preferential tariff treatment on imports into India. Accordingly, where a valid Origin Declaration is furnished, the preferential tariff claim is to be processed without insisting upon Form-I under CAROTAR, 2020.
The Circular further clarifies that Form-I is not required to be submitted along with the Bill of Entry and cannot be treated as a precondition for allowing preferential tariff treatment. CBIC has, in this regard, reiterated its earlier clarification contained in Board’s letter dated 13 November 2020.
Form-I information may be sought only in specified risk-based cases
CBIC has clarified that information specified in Form-I may be sought from an importer only where the Bill of Entry is interdicted by the National Risk Management System (NRMS) for origin-related checks and the proper officer has reason to believe that the prescribed origin criteria have not been fulfilled. Such information may be called for under Section 28DA read with Rule 5 of CAROTAR, 2020.
Importer not required to obtain confidential information from foreign exporter
A significant trade-facilitation clarification has also been issued in relation to confidential information. Under the India–UK CETA, an importer in India is not required to obtain confidential information from the exporter or producer in the UK. The mere non-furnishing of such confidential information cannot, by itself, be made a ground for denying preferential tariff treatment. The importer is required to furnish only such information as has been made available by the exporter or producer.
Where the information available with Customs is insufficient to determine the originating status of the goods, the matter may instead be taken up for verification through the Verification Authority of the exporting Party in accordance with the mechanism prescribed under the relevant Trade Agreement.
Subsequent imports: Earlier adverse origin decision not to be mechanically applied
The Circular has also provided important guidance regarding subsequent imports of identical goods. Section 28DA(11) permits an earlier determination denying preferential tariff treatment to be applied to subsequent imports of identical goods from the same producer or exporter, unless sufficient information is furnished to establish that the goods satisfy the country-of-origin criteria.
However, CBIC has expressly clarified that goods cannot be regarded as “identical” merely because they carry the same description or tariff classification, originate from the same exporter or producer, or possess similar technical characteristics. Before applying an earlier adverse determination to a subsequent consignment, the importer must be given an opportunity to furnish additional information relating to the subsequent import. Where such information establishes compliance with the country-of-origin criteria, the earlier determination shall not be applied.
Further, where the goods in the subsequent consignment differ from those covered by the earlier determination in any material fact relevant to determination of origin, the current preferential tariff claim must be examined independently on its own merits and, wherever necessary, verified in accordance with Section 28DA and the Rules of Origin under the concerned Trade Agreement.
Uniform implementation across Customs formations
CBIC has directed all field formations to bring Circular No. 43/2026-Customs dated 24 September 2026 to the notice of Customs officers as well as the trade and to ensure its uniform implementation across formations. Any difficulty encountered in implementation may be brought to the notice of the Board.
The Circular can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1003345/ENG/Circulars
