The Ministry of Finance (MoF) on July 03, 2026, issued the Customs Tariff (Determination of Origin of Goods under Comprehensive Economic and Trade Agreement between India and the United Kingdom of Great Britain and Northern Ireland) Rules, 2026.
The rules outlines whether a good qualifies as “originating” under the prescribed framework. A good is considered originating if it is wholly obtained or produced within the territory of one or both parties, produced entirely from originating materials, or produced using non-originating materials but meeting specified criteria under Annexure-A. Additionally, the final production must occur in the exporting party, except for certain limited activities.
It further defines “wholly obtained” goods, which include natural resources extracted from the territory, agricultural products grown or harvested there, animals born and raised there, and goods derived from such animals. It also covers products obtained from fishing, marine extraction, and waste or scrap materials fit only for recycling, provided these activities comply with territorial and international law provisions.
The document also explains how the value of goods is determined, allowing either ex-works price or free-on-board (FOB) value. The ex-works price includes production costs, materials, and profit but excludes internal taxes and post-production costs like transportation. FOB value refers to the price at the point of export, including costs incurred up to loading onto the carrier.
Lastly, it introduces the concept of Qualifying Value Content (QVC), which determines the proportion of originating content in a product. This can be calculated using methods such as the Build-Down Method (based on non-originating materials) or the Build-Up Method (based on originating materials), ensuring compliance with origin requirements.
They shall come into force on July 15, 2026.
[Notification No. 62/2026 -Customs (N.T.)]
