India-UK CETA: Rules of Origin — Key Pointers

Effective Date

Step 1: Determine Origin Qualification

Check tariff classification → refer Annexure A for product-specific rule
Goods qualify if: wholly obtained, produced entirely from originating materials, or sufficiently processed using non-originating materials

Product-Specific Rule May Require

QVC Calculation

Build-down method: deduct non-originating material value → Standard QVC needs ≥40% of ex-works price or ≥45% of FOB value
Build-up method: directly measure originating material value → needs ≥35% of either value
Must be backed by costing and input records

Flexibility Built Into the Rules

Bilateral cumulation: UK content counted as Indian-origin (and vice versa)
Alternative tests may apply for some products
Tolerance allows limited non-originating material use
Non-qualifying operations (packing, sorting, painting, labeling, simple dilution) cannot confer origin alone

For Indian Exporters (India → UK)

Preference claimed via: origin declaration (self-certified), designated authority certificate, or UK importer’s knowledge
Self-certification requires one-time registration on DGFT’s Common Digital Platform
Must preserve records (BOM, supplier declarations, invoices, production/costing, transport docs) for 5 years
Third-country routing must stay under customs control, only permitted operations allowed

For UK Exporters (UK → India)

For Indian Importers (Claiming Preference)

Risk Management

Contracts should clearly allocate liability for duty/interest/penalty if an origin claim is rejected
Conduct an origin review before first preferential shipment to avoid disputes, delays, and duty exposure

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