G/RO/LDC/N/IND/1  
 
27 June 2017  
(17-3388) Page: 1/6 
Committee on Rules of Origin  Original: English  
 
NOTIFICATION OF PREF ERENTIAL RULES OF OR IGIN FOR  
LEAST DEVELOPED COUN TRIES  
INDIA 
The following communication, dated 22 June 2017, is being circulated at the reque st of the 
delegation of India. 
_______________  
 
 
Paragraph 4.3 of the 2015 Ministerial Decisi on on preferential rules of origin for least developed 
countries (WT/L/917/Add.1) requires preference -granting Members  to notify preferential rules o f 
origin as per the established procedures1. In addition, as mandated by the Ministerial Decision, the 
Comm ittee on Rules of Origin agreed, at its meeting of 2 March 2017, to a template  for such 
notifications (G/RO/84 ). 
 
Following such requirements, the following notification has been received from : India. 
 
A. BASIC INFORMATION  
 
1)  Notifying member  India 
2)  Date o f entering into force of Rules 
of origin and any substantive  
modification thereof  13 August 2008 [Notified vide Notification No. 100/2008 -
Customs (N.T.) dated 13 August 2008] . 
Modified the Rules of Origin on 10 March 2015 vide 
Notification No. 29/2015 -Customs (N.T.) dated 10  March 2015 
which superseded Notification No. 100/2008 -Customs (N.T.) 
dated 13 August 2008.  
Link: http://www. cbec.gov.in/resources//htdocs -
cbec/customs/cs -act/notifications/notfns -2015/cs -
nt2015/csnt29 -2015.pdf   
3)  Date of expiration of Rules of 
origin if applicable  Not Applicable  
4)  Title of the preferential scheme for 
which legislation on Rules of origin 
is appl icable  Duty Free Tariff Preference Scheme for Least Developed 
Countries  
 
5)  Authority(ies) granting the 
preferential treatment  Central Board of Excise and Customs,  
Department of Revenue,  
Ministry of Finance,  
Government of India  
 Web link with respect to pro cedural matters: 
http://www.cbec.gov.in/resources//htdocs -
cbec/customs/cs -act/notifications/notfns -2015/cs -
nt2015/csnt29 -2015.pd f  
 Web link with respect to the product coverage of the DFTP 
Scheme: http://www.cbec.gov.in/htdocs -
cbec/customs/cs -act/notifications/notfns -2014/cs -
tarr2014/cs08 -2014  
6)  National authorities in charge of The Director (International Customs),  
                                                
1 The relevant notification requirements are contained in Paragraph 2(d) of Annex 1 of the Transparency 
Mechanism for Preferential Trade Arrangements (WT/L/806) and in Paragraph 4 of  Annex II of the Agreement 
on Rules of Origin.  G/RO/LDC/N/IND/1  
 
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  Rules of origin administration  Central Board of Excise and Customs,  
Department of Revenue,  
Ministry of Finance, Government of India,  
Room No. 49, North Blo ck, 
New Delhi 110001,  
INDIA.  
Telephone: +91 11 2309 3380  
Fax +91 11 2309 3760  
e-mail: diricd -cbec@nic.in   
 
B. INFORMATION ON RULES OF ORIGIN  
I.  BENEFICIARIES  
1)  List of Beneficiaries   Complete list of beneficiar y can be found in following web links: 
http://commerce.gov.in/writereaddata/trade/international_tpp_DFT
P.pdf  
 http://www.cbec.gov.in/resources//htdocs -cbec/customs/cs -
act/notifications/notfns -2016/cs -tarr2016/cs39 -2016.pdf  
 http://www.cbec.gov.in/resources//htdocs -cbec/customs/cs -
act/notifications/notfns -2016/cs -tarr2016/cs46 -2016.pdf   
2)  Eligibility  To become a beneficiary under the DFTP Scheme, the prospective 
benefic iary country (Least Developed Country) is required to provide a 
letter of intent as well as specimen seals and signatures of the officials 
authorised to issue the certificate of origin under the DFTP Scheme. The 
prescribed format of the letter of intent an d specimen seals and 
signatures of the authorised officials, as required under the Scheme are 
at Annex I and Annex II respectively of the document availab le at 
following web link : 
http://commerce.gov.in/writereaddata/trade/international_tpp_DFTP.pdf   
 
II.  CRITERIA FOR DETERMINING SUBSTANTIAL TRANSFORMATION  
1)  General criteria, if applicable for all products  
 (a) Definition of wholly 
obtained products  The following prod ucts shall be considered as being wholly obtained 
or produced in the territory of an exporting beneficiary country, 
namely:  
(a) raw or mineral products including mineral fuels, lubricants and 
related materials as well as mineral or metal ores  extracted from 
its territory;  
(b) plant and plant products, including agricultural, vegetable and 
forestry prod ucts grown or harvested there;  
(c) live animals born and raised there;  
(d) products obtained from ani mals referred to in clause (c);  
(e) products obtained by hunting, trapping,  fishing or aquaculture 
conducted there;  
(f) products of sea fishing and other marine products taken from 
outside its territorial waters and exclusive economic zone by 
vessels registered and flying the flag of the  exporting beneficiary 
country;  
(g) products proces sed or made on board its factory ships 
exclusively from produ cts referred to in clause (f);  
(h) scrap and waste derived from manufacturing or processing 
operations conducted there and fit only for disposal or for  the 
recovery of raw materials;  
(i) used articles c ollected there which can no longer perform their 
original function, nor are capable of being restored or repaired 
and which are fit only for disposal or for the reco very of parts or 
raw materials;  
(j) products taken from the seabed, subsoil or ocean floor ther eof 
beyond its territory, provided the exporting beneficiary country 
has the rights to exploit that sea bed, subsoil or ocean floor in G/RO/LDC/N/IND/1  
 
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  accordance with the provisions of the United Nations Convention 
on the Law of the Sea;  
(k) products produced there exclusive ly from the products referred 
to in clauses (a) to (j).  
 (b)  Describe the criteria for 
not-wholly produced 
products  Products not wholly obtained or produced shall be considered as 
originating in the exporting beneficiary country if they fulfil the 
follow ing conditions:  
(a) the total value of the non -originating materials used in the 
manufacture of the export product does not exceed 70% of the 
FOB value or ex -works value of the product so produced or 
obtained (that is, the local value added content in the expo rting 
beneficiary country is at least 30%);  
(b) the product has undergone a change in tariff classification in sub -
heading at the 6 digit level of the Harmonized System 
nomenclature from the tariff classification in which the non -
originating material used in its manufacture are classified; and  
(c) the final process of manufacture is performed within the territory 
of the exporting beneficiary country.  
 (c)  Insert the formula for 
calculating ad valorem  
percentage  For the purpose of calculating the "local value a dded content " 
referred to in sub -rule (1), one or other of the following formulae 
shall be applied:  
(a) 
 
(b) 
 
2)  Product specific rules of origin, where applicable  
 (a)  Insert  the link where 
the complete list of 
product speci fic rules of 
origin can be found.  There is no product specific rule under the Duty Free Tariff Preference 
Scheme  
  
 (b)  Insert the formula for 
calculating ad valorem  
percentage, when 
applied for product 
specific rule  Not applicable  
3) Definition of non -originating 
material and originating 
material, if any  The value of the non -originating materials used in the production of a 
product shall be  
(a) for materials, the country of origin of which is other than the 
exporting beneficiary country or India, the CIF va lue; or  
(b) for materials, the origin of which cannot be determined, the 
earliest price ascertained to have been paid in the territory of the 
exporting beneficiary country where the working or processing 
takes place, in accordance with the Agreement on Customs  
Valuation.  
Explanation 1 .- For the purpose of calculation of value of the non -
originating materials, duties and taxes on the material paid in the 
territory of the exporting beneficiary country or both of India and the 
exporting beneficiary country shall n ot be included, and if already 
included in such value, such expenses shall be deducted.  
Explanation 2 .- All costs referred to in these rules shall be recorded 
and maintained in accordance with the generally accepted accounting 
principles applicable in the territory of the exporting beneficiary 
country in which the product is produced.  
4) List of insufficient working 
process, if any  Product shall not be considered to have satisfied the requirements for 
an originating product merely by reason of going throug h the 
following operations or processes:  
(a)  operations to ensure the preservation of products in good G/RO/LDC/N/IND/1  
 
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  condition during transport and storage such as drying, freezing, 
keeping in brine, ventilation, spreading out, chilling, placing in 
salt, sulphur dioxid e or other aqueous solutions, removal of 
damaged parts, and like operations;  
(b) simple operations consisting of removal of dust, sifting or 
screening, sorting, classifying, matching including the making -up 
of sets of articles, washing, painting and cutti ng;  
(c)  changes of packing and breaking up and assembly of 
consignments;  
(d)  simple cutting, slicing and repacking or placing in bottles, flasks, 
bags, boxes, fixing on cards or boards, and all other simple 
packing operations;  
(e)  affixing of marks, labels or other like distinguishing signs on 
products or on their packaging;  
(f)  simple mixing of products whether or not of different kinds, 
where one or more components of the mixture do not meet the 
conditions laid down in these rules to enable them to  be 
considered as originating products;  
(g)  simple assembly of parts of products to constitute a complete 
product or disassembly of products into parts or packing thereof;  
(h)  slaughter of animals;  
(i)  mere dilution or mixing of products with water or  another 
substance that does not materially alter the characteristics of the 
products so obtained;  
(j)  a combination of two or more operations referred to in clauses 
(a) to (i).  
5) Rules for application of 
cumulation and related 
procedures if any  "Accum ulation ": Where the originating material from India is 
incorporated in the production of a product in the territory of the 
exporting beneficiary country, such material shall be considered to 
originate in the territory of the exporting beneficiary country.  
6) Any other information that 
member deems necessary  Web link with respect to Rules for Determination of Origin of Products 
under the Duty Free Tariff Preference Scheme:  
http://www.cbec.gov.in/resources//htdocs -cbec/customs/cs -
act/notifications/notfns -2015/cs -nt2015/csnt29 -2015.pdf   
 
III.   DOCUMENTARY REQUIREMENTS  
1)  Certificate of origin and other proofs of origin  
 (a)  Requ irement for 
certificate of origin 
and/or any other proof 
of origin, if any  Issuance of certificate of origin is required  
 (b)  Authority to be 
designated for 
issuance of certificate 
of origin  Beneficiary country is to notify the Government authority/Agenc y for 
issuance of certificate of origin.  
 (c)  Prescribed form of 
Certificate of origin 
and/or any other proof 
of origin  Prescribed form of certificate of origin is at Annexure –C  of  the 
following web link: http://www.cbec.gov.in/resources//htdocs -
cbec/customs/cs -act/notifications/notfns -2015/cs -nt2015/csnt29 -
2015.pdf   
 (d)  Any other procedures 
applied for certificate 
of orig in and/or any 
other proof of origin, if 
any Procedures applied for certificate of origin is available at the web link 
mentioned at ( c) above  G/RO/LDC/N/IND/1  
 
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  2)  Direct shipment  
 (a)  Rules applicable for direct 
shipment, if any  Products, in respect of which tariff prefe rence is claimed, shall 
be considered as directly consigned from the exporting 
beneficiary country if,  
(a) these products are transported without passing through 
the territory of any other country; or  
(b) the transport of these products involves transit through 
one or more intermediate countries with or without trans -
shipment or temporary storage in such countries, where, - 
(i)  their transit entry is justified for geographical reasons 
or by considerations related exclusively to transport 
requirements;  
(ii) the products have  not entered into trade or 
consumption there;  
(iii) the products have not undergone any operation other 
than unloading and reloading or any operation 
required to keep them in good condition; and  
(iv) the products have remained under the customs 
control in the country  of transit.  
 (b)  Documentary requirement for 
proof of direct shipment 
including when the transport 
of consignment involves 
transit through one or more 
intermediate countries, if any  For the purpose of claiming tariff preference for the imported 
product considering such product as directly consigned from 
the exporting beneficiary country the following shall be 
produced before the customs authority of India at the time of 
importation:  
(a) a through bill of lading issued in the exporting country;  
(b) a certificate  of origin issued by the issuing authority of the 
exporting beneficiary country;  
(c) a copy of the original commercial invoice in respect of the 
product; and  
(d) supporting documents in evidence that other 
requirements of this  rule have been complied with.  
 
IV.  VERIFICATION AND PENALTIES  
1)  Procedure for verification of proofs 
of origin  Rule 20 of the Customs Tariff (Determination of Origin of 
Products under the Duty Free Tariff Preference Scheme for 
Least Developed Countries) Rules, 2015 notified vide 
Notifi cation No. 29/2015 -Customs (N.T.) dated 
10 March  2015.  
Web link:  http://www.cbec.gov.in/resources//htdocs -
cbec/customs/cs -act/notifications/notfns -2015/cs -
nt2015/csnt29 -2015.pdf   
2)  Penalties for fraud and false 
declarations  Rule 23 of the Customs Tariff (Determination of Origin of 
Products under the Duty Free Tariff Preference Scheme for 
Least Developed Countries) Rules, 2015 notified vide 
Notification No. 29/2015 -Customs (N.T.) dated 
10 March  2015.  
3)  Authorities and procedures for 
appeal in the case of dispute on 
verification  As per Domestic Law  
4) Requirement for preserving the 
documents related to issuance of 
certificate  of origin  The application for certificate of origin and all documents 
related to such application shall be retained by the issuing 
authority for not less than five years from the date of issuance 
of the said certificate.  
5) Any other relevant information   
 G/RO/LDC/N/IND/1  
 
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  V.  REFERENCE TEXTS  
(a) The legislative texts in one of the 
official WTO languages containing 
the preferential rules of origin 
applicable under a PTA granted 
under the Decision on Measures in 
Favour of Least -Developed 
Countries (Annex F of the Hong 
Kong Ministerial Declaration)  The Customs Tariff (Determination of Origin of Products under 
the Duty Free Tariff Preference Scheme for Least Developed 
Countries) Rules, 2015 are available on the official web site:  
http://www.cbec.gov.in/resources//htdocs -cbec/customs/cs -
act/notifications/notfns -2015/cs -nt2015/csnt29 -2015.pdf  
(b) The full text of the administrative 
regulations conce rning modalities 
for issuance, acceptance, 
retrospective issuance and 
replacement of certificates of 
origin or any equivalent 
declarations to be made, including 
any requirements  related to 
stamps to be used along with 
notification of stamps  
(c) The full  text and related 
administrative regulations of the 
modalities for the proof of 
movement of the consignment of 
the goods from the beneficiary 
countries to preference -giving 
countries including transit through 
third countries  
(d) The full texts of the mod alities of 
the verification procedures and 
related penalties  
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