The Ministry of Finance (Department of Revenue), through CBIC, has notified the Customs Tariff (Determination of Origin of Goods under the Trade and Economic Partnership Agreement between India and the EFTA States) Rules, 2025. The measure, published as Notification No. 59/2025-Customs (N.T.) dated September 29, 2025, will come into force from October 01, 2025.
The notification lays down detailed rules to determine the origin of goods traded under the India-EFTA Trade and Economic Partnership Agreement (TEPA), signed on March 10, 2024, between India and the EFTA member states — Iceland, Liechtenstein, Norway, and Switzerland. These rules are crucial for granting preferential tariff benefits under the agreement.
Key provisions include:
- Wholly obtained criteria: Goods such as minerals, agricultural produce, livestock, fisheries, and certain industrial by-products will qualify as originating if wholly obtained in either party.
- Sufficient processing rules: Imported materials must undergo specified levels of processing or tariff classification changes in order to secure origin status. A de-minimis allowance permits up to 10% non-originating material value.
- Exclusions: Simple operations like packaging, labeling, mixing, or minor processing will not confer origin.
- Proof of origin: Exporters can use origin declarations, movement certificate EUR.1, or certificates of origin from authorized agencies. Validity is set at 12 months.
- Verification mechanism: Customs authorities may request additional information, conduct inspections, or factory visits to verify compliance.
- Preferential treatment: Importers are required to submit proof of origin to claim tariff benefits; waivers may apply for low-value or personal consignments.
The notification also establishes provisions on accumulation of origin, confidentiality, penalties, cooperation between authorities, and a Sub-Committee on Rules of Origin to oversee implementation and address disputes.
This framework is expected to facilitate smoother trade flows between India and EFTA nations, enhancing market access while ensuring compliance with agreed origin standards.
The Complete Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/09/csnt59-2025-1.pdf
