Trade policy review report by the secretariat

3.1.3  Rules of origin

82. 
    Changes in India's rules of origin since 2011 include the adoption of preferential rules of origin with regard to imports from Malaysia and Japan under bilateral FTAs, which entered into force on 1 July 2011 and 1 August 2011, respectively. India does not apply non-preferential rules of origin. Preferential rules of origin are applied under regional and bilateral trade agreements (Table 3.2). Maximum foreign-content requirements range from 30% to 70%; other criteria to determine origin are sufficient transformation and change in tariff classification.
    

Table 3.12 General rules of origin under trade agreements, 2015^a

Agreements	Maximum foreign content requirements	Minimum cumulative local content requirements
Regional
Asia Pacific Trade Agreement (APTA)	55% of the f.o.b. value (LDCs: 65%)	60% of the f.o.b. value (LDCs: 50%)
Global System of Trade Preferences (GSTP)	50% of the f.o.b. value (LDCs: 60%)	60% of the f.o.b. value (LDCs: 50%)
South Asian Free Trade Area (SAFTA)^b	60% of the f.o.b. value (LDCs: 70%; Sri Lanka: 65%) and change in tariff heading^c	50% of the f.o.b. value (20% of the f.o.b. value as domestic value content in the exporting country) and change in tariff heading
South Asia Preferential Trade Arrangement (SAPTA)	60% of the f.o.b. value (LDCs: 70%)	50% of the f.o.b. value (LDCs: 40%)
Bilateral
Afghanistan	50% of the f.o.b. value and change in tariff heading	40% of the f.o.b. value (30% of the f.o.b. value as domestic value content in the exporting country) and change in tariff heading
ASEAN^b	65% of the f.o.b. value and change in tariff sub-heading^d	35% of the f.o.b. value and change in tariff sub-heading
Bhutan	n.a.	n.a.
Chile	60% of the f.o.b. value^d and change in tariff heading	40% of the f.o.b. value and change in tariff heading
Korea, Rep. of^b	65% of the f.o.b. value and change in tariff sub-heading	35% of the f.o.b. value and change in tariff sub-heading
MERCOSUR	40% of the f.o.b. value	60% of the f.o.b. value
Nepal	70% of the f.o.b. value and change in tariff heading	30% of the f.o.b. value and change in tariff heading
Singapore^b	60% of the f.o.b. value and change in tariff heading	40% of the f.o.b. value and change in tariff heading
Sri Lanka	65% of the f.o.b. value and change in tariff heading	35% of the f.o.b. value (25% of the f.o.b. value as domestic value content in the exporting country) and change in tariff heading
Thailand^d	60% of the f.o.b. value and change in tariff heading	40% of the f.o.b. value and change in tariff heading
Japan	65% of the f.o.b. value and change in tariff sub-heading	35% of the f.o.b. value and change in tariff sub-heading
Malaysia	65% of the f.o.b. value and change in tariff sub-heading	35% of the f.o.b. value and change in tariff sub-heading
Other preferential areas
Least developed countries	70% of the f.o.b. value and change in tariff heading	30% of the f.o.b. value and change in tariff heading

n.a. Not applicable.

a Applicable to goods not wholly originating and subject to compliance with other conditions specified in the rules of origin chapter.

b Product specific rules of origin apply.

c "Change in tariff heading" denotes change at the HS 4 digit level.

d "Change in tariff sub heading" denotes change at the HS 6 digit level.

Note: Rules of origin are not covered under the India Bhutan preferential trade agreement.

Source: Department of Commerce online information, "International Trade: Trade Agreements". Viewed at: http://www.commerce.nic.in/trade/international_ta.asp?id=2&trade=I; Customs General Exemption Nos. 70 and 71. Viewed at: http://www.cbec.gov.in/customs/cst-809/cs-gen66-90.pdf; and information provided by the Indian authorities.