Customs (Administration of Rules of Origin under Trade Agreements) Amendment Rules, 2025

Current Context: The Ministry of Finance has notified amendments to the 2020 Rules under the Customs Act, 1962, introducing stricter requirements for imports availing preferential tariff rates under trade agreements.

Key Facts:

• Replaces ‘Certificate of Origin’ with ‘Proof of Origin’.
• Ensures goods comply with the criteria of being wholly obtained, produced, or processed in a specific country under trade agreements.

Objective:

• Tighten verification of preferential imports to prevent misuse.
• Protect domestic industries from unfair trade practices.

Significance:

• Greater Scrutiny: Customs authorities can now demand additional evidence beyond the proof of origin.
• Curb Misuse: Addresses misuse of trade routes via ASEAN, Sri Lanka, UAE, particularly targeting Chinese imports to avoid higher tariffs and trade restrictions.
• Implementation Basis: Notified under the Customs Act, 1962, aligning with India’s trade agreements.