DGFT Proposes Comprehensive Non-Preferential Rules of Origin: Comments Invited on Draft Para 2.93 Amendment

The Directorate General of Foreign Trade (DGFT) has put out a draft framework for non-preferential Rules of Origin that would apply to both exports and imports. Issued as Trade Notice No. 27/2026-27, dated 14 September 2026, it proposes a comprehensive amendment to Paragraph 2.93 of the Handbook of Procedures (HBP) 2023 and invites stakeholder comments within 15 days of publication. This is a consultation, not yet a binding change — but it signals how India intends to standardise origin determination outside of free-trade-agreement preferences, and exporters, importers and Certificate-of-Origin issuers should read it now.

What Happened

The draft sets out a structured basis for determining the country of origin of goods where no preferential tariff is at stake — the "non-preferential" origin used for Certificates of Origin, country-of-origin marking, trade-remedy (anti-dumping/CVD) scope, import-monitoring and similar purposes. As summarised in trade reporting, the proposed tests include:

• Wholly obtained criteria, used especially for agricultural and primary goods entirely produced in one country.
• Change of tariff heading (CTH) — a substantial-transformation test where the processing shifts the product to a different tariff heading.
• A minimum 35% value-addition threshold as an alternative substantial-transformation test for imports.
• For exports, a requirement that goods undergo processing that goes beyond simple operations such as sorting, washing or basic assembly.

The notice also describes an administrative model in which designated agencies issue non-preferential Certificates of Origin online (reported at a nominal fee), qualified Status Holder manufacturers may self-certify, and in many import cases origin would rest on importer self-declaration with risk-based verification conducted afterwards rather than an up-front certificate for every consignment.

Comments are to be submitted by email with the subject line "Comments on Draft Amendment in Para 2.93" within the 15-day window. Because that window is short, affected exporters and councils that want their position reflected should act quickly; the comment period for this draft may already have closed by the time you read this, in which case watch for the final amendment.

Why / Background

Non-preferential origin underpins a surprising amount of day-to-day trade: marking rules, trade-remedy coverage, government-procurement eligibility and the general-purpose Certificates of Origin that many buyers and foreign customs authorities ask for even when no FTA preference is claimed. India's existing framework has been seen as fragmented; a single, written set of criteria in Para 2.93 would give exporters and importers clearer, more predictable rules and reduce disputes about whether goods are "Indian origin" for non-preferential purposes.

Who's Affected

The framework touches almost every trader. Exporters who obtain general (non-preferential) Certificates of Origin, importers who must declare origin for marking or trade-remedy purposes, EPCs and chambers that issue CoOs, and CHAs and forwarders who prepare origin documentation all have a stake. It is distinct from the preferential rules of origin and CAROTAR provisions that govern FTA claims — those remain governed by the relevant agreement and the recent CBIC clarification.

What Exporters Should Do Now

• Read the draft Para 2.93 criteria against your own products and manufacturing processes to see whether you clearly meet a wholly-obtained, CTH or 35% value-addition test.
• Map your value addition — if you rely on imported inputs, calculate domestic value addition now so you can substantiate "Indian origin" if challenged.
• Submit comments through your EPC or chamber if the draft would create difficulty for your product, while the window is open.
• Review your CoO process for readiness to move to online issuance and, if you are a Status Holder, assess self-certification.

What Importers and CHAs Should Do Now

• Prepare for self-declaration with post-clearance verification — keep origin evidence (BOMs, supplier declarations, manufacturing records) on file even when no certificate is demanded up front.
• Check trade-remedy exposure — clearer non-preferential origin rules can affect whether your imports fall within an anti-dumping or countervailing-duty scope.

The Bigger Picture

A codified non-preferential origin framework is part of India's broader move to make trade documentation more rule-based and digital, running alongside the shift to online Certificate-of-Origin issuance and status-holder self-certification. For traders, the upside is predictability; the watch-point is that clearer origin rules also make origin easier to audit, so documentation discipline — not just a certificate in the file — becomes the real compliance test.

Frequently Asked Questions

Is this the same as FTA/preferential rules of origin? No. This draft concerns non-preferential origin (general CoOs, marking, trade-remedy scope). Preferential origin for FTA tariff claims is governed by the specific agreement and CAROTAR provisions.

Is it in force now? No. Trade Notice 27/2026-27 is a draft inviting comments. Watch for the final amendment to Para 2.93 of HBP 2023 before treating it as binding.

What is the value-addition test? As drafted, a minimum 35% value addition is proposed as one route to establish substantial transformation for imports, alongside wholly-obtained and change-of-tariff-heading tests.

How do I comment? By email to the DGFT inbox named in the trade notice, with the subject line "Comments on Draft Amendment in Para 2.93," within the stated 15-day window.

Conclusion

DGFT's draft non-preferential Rules of Origin would give India a clearer, more uniform basis for deciding when goods are of Indian origin outside FTA preferences — affecting Certificates of Origin, marking and trade-remedy coverage alike. Exporters and importers should test their products against the proposed criteria and tighten origin record-keeping now, ahead of the final amendment.

This summary is for general guidance only and describes a draft under consultation. Verify the current status, exact criteria and comment deadline against DGFT Trade Notice No. 27/2026-27 and HBP 2023 on the DGFT portal (dgft.gov.in) before acting.