DGFT Proposes Comprehensive Non-Preferential Rules of Origin for Both Exports and Imports

The Directorate General of Foreign Trade (DGFT) has opened a public consultation that could reshape how origin is determined for goods moving in and out of India outside any free-trade agreement. Through Trade Notice No. 27/2026-27 dated 14 September 2026, DGFT has placed a draft Public Notice on the table that would rewrite Para 2.93 of the Handbook of Procedures, 2023 to comprehensively prescribe Non-Preferential Rules of Origin (RoO) for both exports and imports. Stakeholders have 15 days from publication to send comments. This is a consultation, not yet a binding rule — but the direction of travel is clear, and it matters for every exporter who issues a non-preferential Certificate of Origin and every importer who declares a country of origin on a Bill of Entry.

What Happened

DGFT reviewed its origin framework and proposes to codify, in one place, how Indian origin is established for exports and how country of origin is to be treated for imports where no preferential (FTA) claim is involved. The draft covers the criteria, the documentation, the issuing agencies and — most notably — a self-declaration model for imports. Comments must be emailed to DGFT with the subject line "Comments on Draft Amendment in Para 2.93 of the Handbook of Procedures, 2023 — Rules of Origin (Non-Preferential)" within the 15-day window.

Why This Matters / Background

"Non-preferential" origin is the origin of goods where no tariff preference is claimed. It still matters a great deal: it underpins non-preferential Certificates of Origin required by many foreign buyers and customs administrations, anti-dumping and trade-remedy scope, government-procurement rules, and country-of-origin marking. Until now the non-preferential rules for imports were not comprehensively spelled out in the Handbook. The draft fills that gap and aligns India's approach with internationally recognised tests.

Who's Affected

The proposal touches manufacturer-exporters (especially those using imported inputs), merchant-exporters and Status Holders who self-certify origin, the agencies notified in Appendix 2E that issue Certificates of Origin, and — on the import side — every importer and customs broker who declares country of origin at clearance.

The Proposed Rules in Detail

For exports, goods must be manufactured by the exporting entity as defined in the FTP. Where imported inputs (duty-paid or duty-free) are used, the export product qualifies as Indian-origin only if those inputs undergo processing that exceeds specified "simple operations" — the draft lists these as removal of dust, sifting, sorting, matching, repacking, labelling, simple mixing, simple assembly, disassembly, mere dilution, slaughter and similar minimal steps, and any combination of them.

Non-preferential Certificates of Origin continue to be applied for online via trade.gov.in to agencies listed in Appendix 2E, with invoice and packing list uploaded and a Rs. 200 fee per certificate. Manufacturer-exporters who are also Status Holders may self-certify Indian origin where the criteria are met. Agencies may issue back-to-back CoOs for non-Indian-origin goods intended for re-export, transshipment or merchanting trade, provided the foreign country of origin and supporting evidence are explicitly stated.

For imports, the draft prescribes: for goods under ITC(HS) Chapters 01–14, origin is the country where goods are wholly obtained or produced, subject to a 1% de-minimis tolerance; for all other goods, origin is the country where non-originating materials underwent a change of tariff heading (4-digit level) or the good achieved at least 35% value addition (computed on FOB value net of non-originating material). Crucially, the importer would self-declare country of origin on the Bill of Entry, no separate origin document would generally be required (except where a law or country-specific condition mandates one), and clearance would proceed on the declaration — with risk-based verification only where there are reasonable grounds to doubt the declared origin.

What Exporters, Importers, Forwarders and CHAs Should Do Now

• Read the draft against your own product: check whether your processing of imported inputs clears the "more than simple operations" bar for Indian-origin export CoOs.
• Status Holders: review the self-certification route in the draft (Annexure-III to Appendix 2E) and decide whether to adopt it.
• Importers and CHAs: prepare for an origin self-declaration on the Bill of Entry and keep origin evidence on file even if no certificate is demanded, because subsequent risk-based verification is expressly retained.
• Assess the 35% / change-of-tariff-heading test for goods you import that may attract country-specific conditions or trade-remedy measures.
• Submit comments within 15 days if any provision affects your trade, clearly indicating practical difficulties.

The Bigger Picture

A single, codified non-preferential origin framework with an importer self-declaration model signals continued movement toward trust-based, risk-managed clearance — fewer paper certificates up front, more back-end verification. For exporters it brings welcome clarity on when value addition confers Indian origin; for importers it reduces documentary friction but raises the premium on accurate declarations, since a wrong self-declaration is the importer's liability.

Frequently Asked Questions

Is this rule in force now? No. It is a draft placed for comments via Trade Notice 27/2026-27. It becomes operative only if and when DGFT issues the final Public Notice.

Does this affect FTA / preferential origin claims? No. These are non-preferential rules. Preferential origin under CEPA/CETA/FTAs continues to follow the relevant agreement's own origin rules.

Will importers still need a Certificate of Origin? Under the draft, generally no separate origin document is required for non-preferential imports — a self-declaration suffices — except where specifically mandated by law or a country-specific condition.

How is value addition calculated? Value Addition (%) = [(FOB value − value of non-originating material) / FOB value] × 100, with a 35% threshold for the "other goods" category.

Conclusion

Trade Notice 27/2026-27 is a consultation worth engaging with now rather than reacting to later. Exporters should confirm their goods meet the Indian-origin test; importers and CHAs should be ready for a self-declaration regime backed by risk-based checks. The 15-day comment window is short — affected businesses should respond promptly.

This summary is for general guidance only. Verify all details against the official Trade Notice and draft Public Notice on the DGFT portal (dgft.gov.in) and trade.gov.in before acting.