Free Trade Agreements and Preferential Trade Arrangements

India is party to a growing number of free trade agreements and preferential trade arrangements that allow qualifying goods to be imported at reduced or nil rates of customs duty when traded between partner countries. Access to these preferential rates depends on the goods satisfying the applicable rules of origin and being accompanied by a valid certificate of origin issued in accordance with the specific agreement. Businesses that overlook these requirements often pay full duty on goods that could have qualified for preferential treatment, or conversely, claim preference without adequate origin evidence and expose themselves to subsequent recovery action.

Why This Matters

Rules of origin are agreement-specific and technically detailed, generally requiring that goods be either wholly obtained in the exporting country or have undergone a sufficient degree of processing or value addition there. Indian customs authorities have significantly tightened scrutiny of preferential claims in recent years, including verification of the underlying certificate of origin and, in some cases, the exporter's cost and production records. A preferential claim that cannot be substantiated on verification can result in denial of the concession along with differential duty, interest, and penalty.

How We Help

Origin Eligibility Assessment

We assess whether a specific product qualifies as originating under the rules of origin of the relevant free trade agreement or preferential arrangement, examining the manufacturing process, input sourcing, and value-addition against the applicable origin criteria.

Certificate of Origin Support

We assist exporters in preparing the documentation and cost data needed to support an application for a certificate of origin, and we advise importers on verifying the adequacy of certificates received from overseas suppliers.

Preferential Duty Claim Structuring

We help importers structure their import declarations to correctly claim preferential duty rates, ensuring that the necessary certificate and supporting documentation are in place at the time of filing the bill of entry.

Origin Verification Response

When customs authorities initiate verification of a preferential claim, we assist in coordinating the response, including gathering supporting records from the exporter or manufacturer and presenting the case to the satisfaction of the verifying authority.

Who Needs This

• Importers sourcing from countries covered by an Indian free trade agreement
• Exporters seeking to make their goods more competitive in partner markets
• Manufacturers evaluating supply chain changes to meet origin thresholds
• Businesses facing origin verification queries from customs authorities

Our Approach

We approach preferential trade claims with the same rigour as any other duty-saving position, verifying the underlying facts before a claim is made rather than assuming eligibility from country of origin alone. Our advice reflects the specific text of each agreement, since origin rules and procedures differ meaningfully from one arrangement to another.

Get in Touch

To discuss how we can support you with free trade agreements and preferential trade arrangements, write to us at info@agarwalurs.com.