TaxTMI 
TaxTMI 
Free Trade Agreements – "Proof" of Origin Certificate - An Exclusive and Practical Analysis
X X X X Extracts X X X X
X X X X Extracts X X X X
....ree Trade Agreements – "Proof" of Origin Certificate - An Exclusive and Practical Analysis<br>By: - YAGAY andSUN<br>Customs - Import - Export - SEZ<br>Dated:- 25-7-2025<br>Heres an exclusive analysis of Free Trade Agreements (FTAs) with a focus on the critical concept of 'Proof' of Origin Certificate - its purpose, types, requirements, risks, and strategic insights for importers/exporters. 1. W....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat Is a Free Trade Agreement (FTA)? An FTA is a bilateral or multilateral agreement between countries that reduces or eliminates tariffs, quotas, and preferences on goods and services traded among them. India has signed several FTAs, including with: * ASEAN * Japan (CEPA) * South Korea (CEPA) * UAE (CEPA) * Australia (ECTA) * Mauritius (CECPA) * Sri Lanka, Nepal, Bhutan (SAFTA, SA....
X X X X Extracts X X X X
X X X X Extracts X X X X
....PTA) 2. What Is a 'Proof' of Origin Certificate? A Certificate of Origin (COO) is a critical document that certifies the country of origin of the goods being exported. Under an FTA, it acts as "proof" that goods are eligible for preferential treatment (i.e., lower or zero customs duties). 3. Types of Certificate of Origin Type Use Issued By Preferential COO For FTAs/CEPAs to avail duty con....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cessions Govt. agencies like DGFT-authorized chambers Non-Preferential COO For general export, not linked to FTAs Chambers of commerce, DGFT portals 4. Key Requirements for a Valid Proof of Origin To qualify for preferential tariff, the goods must: A. Satisfy Rules of Origin (ROO) * Wholly obtained (e.g., agriculture, minerals) * Substantial transformation or value addition (Specific % ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....local content) * Change in Tariff Heading (CTH) / Chapter / Subheading Example: If a shirt is made in India from imported fabric, value addition and transformation rules must be met. B. Be Accompanied by Valid COO * Must include: * FTA name * Tariff code * Country of origin * Signature of issuing authority * Validity period * Must be original and error-free 5. Risks & Red Flags ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Risk Impact Incorrect tariff classification Denial of FTA benefit Ineligible origin claimed Demand of full duty + penalty Expired COO or photocopy submitted Rejection at Customs Insufficient value addition Disqualification from preferential rate Improper documentation or inconsistent declaration SVB investigation or audit trigger 6. FTA COO - Filing & Verification Process in India Fo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r Importers: * Claim FTA benefit by declaring: * FTA name * Customs Notification No. and date * Submit original COO * Keep all supporting documentation (invoice, transport docs) For Exporters: * Apply via: * DGFT portal (e-CoO platform) for most FTAs * Submit: * Manufacturer's declaration * Bill of materials * Invoice & packing list * Proof of origin (inputs, value additio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n, etc.) 7. Strategic Best Practices For Importers: * Always verify: * The COO is original and signed/stamped * Goods meet origin criteria under the specific FTA * Maintain FTA Notification copy + import declarations * Keep import and origin records for 5+ years For Exporters: * Review origin rule criteria for each FTA - they differ! * Conduct a self-origin verification audit * ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Automate e-COO submission through DGFT portal for faster clearance * Partner with logistics/customs consultants for complex classifications 8. India's COO System (CAROTAR 2020) India introduced CAROTAR Rules (Customs Administration of Rules of Origin under Trade Agreements) in 2020 to strengthen origin verification. Key CAROTAR Provisions: * Importers must possess basic origin info at the t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ime of claiming benefits. * Customs can request documents from importers to verify COO authenticity. * Misdeclaration can result in duty evasion proceedings. 9. Notable FTA Origin Certificate Portals FTA COO Issuance Mode India-ASEAN DGFT e-CoO Portal India-Japan CEPA DGFT or JETRO India-UAE CEPA DGFT Portal India-Korea CEPA e-CoO or manual via EEPC/FIEO 10. Quick Summary Tab....
X X X X Extracts X X X X
X X X X Extracts X X X X
....le Topic Summary Purpose To claim duty concessions under FTAs Document Preferential Certificate of Origin Issued By Govt. agencies or Chambers of Commerce Importer Duty Verify COO + comply with CAROTAR Exporter Duty Correct self-certification + accurate declaration Penalty Risk Customs duty recovery + interest + penalties Need Assistance? I can help with: * Template COO formats ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... * FTA-specific rule of origin checks * Value addition and cost-sheet prep * CAROTAR 2020 importer documentation checklist * e-CoO portal guidance ***<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....