The Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce and Industry, has invited comments and suggestions from exporters, importers, Export Promotion Councils, trade bodies and other stakeholders on a proposed amendment to Para 2.93 of the Handbook of Procedures (HBP), 2023 relating to Rules of Origin (Non-Preferential). The consultation has been initiated through Trade Notice No. 27/2026-27 dated September 14, 2026.
Comprehensive framework for exports as well as imports: DGFT has proposed to substantially recast Para 2.93 so as to comprehensively prescribe Non-Preferential Rules of Origin for both exports and imports. The proposed amendment has been placed as Annexure-I in the form of a Draft Public Notice. Notably, the Draft Public Notice number has presently been kept blank as “Draft Public Notice No. ___/2026-27” and, therefore, the proposal is still at the stakeholder-consultation stage.
Origin criteria for Indian exports: Under the proposed rules, goods intended to qualify as originating in India for Non-Preferential purposes are required to be manufactured by the exporting entity in accordance with the definition of “Manufacture” under Paragraph 11.31 of the Foreign Trade Policy. Where imported inputs, whether duty-paid or duty-free, are used in production, the exported product may be treated as originating in India only where the imported inputs undergo processing or operations beyond the specified list of minimal operations.
Minimal operations will not by themselves confer Indian origin: The draft identifies various simple or minimal processes which would not be sufficient by themselves to confer Indian origin. These include, inter alia, removal of dust, sifting, sorting, classification, washing, painting, simple cutting, changes in packing, repacking, preservation operations, affixing labels or marks, simple mixing, simple assembly, disassembly, slaughter, mere dilution and combinations of such processes.
Non-Preferential Certificate of Origin for exports to continue through authorised agencies: The Government-notified agencies listed in Appendix 2E, as well as agencies authorised to issue Preferential Certificates of Origin, may issue Non-Preferential Certificates of Origin (CoO) for exports. Such certificates establish the origin of goods and do not confer entitlement to preferential tariff treatment.
Online CoO application and ₹200 fee proposed: Exporters requiring a Non-Preferential CoO will be required to submit applications online through trade.gov.in to an agency listed in Appendix 2E. A copy of the invoice and packing list will have to accompany the online application. The proposed fee is ₹200 for each Certificate of Origin, including attestation of additional documents.
Online correction through ‘in-lieu CoO’ mechanism: Authorised issuing agencies would be required to ensure that goods satisfy the prescribed Indian-origin criteria before granting an electronic Non-Preferential CoO. Any correction in an existing eCoO may be sought online through an “in-lieu CoO” application. Agencies seeking enlistment under Appendix 2E may apply to DGFT in the prescribed manner.
Self-certification facility proposed for Status Holder manufacturer-exporters: A significant facilitation measure in the draft provides that manufacturer-exporters who are also Status Holders may self-certify their goods as originating from India, subject to fulfilment of the prescribed origin criteria and the format stipulated under Appendix 2E.
Back-to-Back Non-Preferential CoO for re-export and merchanting trade: The draft also expressly permits authorised agencies to issue Back-to-Back Certificates of Origin (Non-Preferential) for goods not of Indian origin in cases of re-export, trans-shipment and merchanting trade. Such certificates would have to be supported by documentary evidence establishing the foreign country of origin, and the supporting evidence and country of origin must be specifically mentioned on the Back-to-Back CoO.
New Non-Preferential Rules of Origin proposed for imports: For imported goods falling under Chapters 01 to 14 of the ITC (HS) Schedule, the country of origin would be the country where the goods are wholly obtained or produced, subject to a de-minimis tolerance of 1% of the value of the goods.
Change in Tariff Heading or 35% value addition for other imported goods: For goods other than those covered under Chapters 01 to 14, the proposed rule provides that the country of origin would be the country where either all non-originating materials used in manufacture have undergone a Change in Tariff Heading at the 4-digit HS level, or the goods have undergone at least 35% value addition. The draft also contains a formula for computation of value addition.
Importer self-declaration to replace routine requirement of separate CoO: Under the proposed framework, an importer would declare the country of origin of imported goods on the basis of information available to the importer and furnish the prescribed self-declaration containing details such as Bill of Entry number, ITC (HS) code, country of origin, importer name and IEC. Significantly, no separate Certificate of Origin or other origin-related document would ordinarily be required for clearance, unless specifically mandated under applicable law or under a notified country-specific requirement.
Clearance on self-declaration; verification to be risk-based: The draft envisages that goods may be cleared on the basis of the importer’s self-declaration. Verification, wherever considered necessary, may subsequently be undertaken on a risk-based basis, particularly where there are reasonable grounds to doubt the declared country of origin or where country-specific conditions apply.
Routine and repetitive verification sought to be avoided: Where verification is initiated, the importer may be required to furnish information or documents that are reasonably available in the normal course of business. The proposed provision specifically states that routine or repeated verification of the same goods, country of origin and circumstances should be avoided, indicating a move towards a facilitative and risk-based compliance framework.
Stakeholders given 15 days to submit comments: Exporters, importers, Export Promotion Councils, trade bodies and other interested parties have been invited to examine the Draft Public Notice and submit their comments, suggestions and inputs within 15 days from the date of publication of Trade Notice No. 27/2026-27. The comments are to be sent to ramesh.dr@gov.in, with the email subject mentioning “Comments on Draft Amendment in Para 2.93 of the Handbook of Procedures, 2023 – Rules of Origin (Non-Preferential)”.
The Trade Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/09/Trade-notice-27_0001.pdf
