Using India's trade agreements to cut your buyer's import duty

This guide is for exporters selling to countries that have a trade agreement with India. It explains how preferential duty works, how to find the rate your buyer can get, how to check the rules of origin and how to obtain the proof of origin your buyer's customs will ask for.

How preferential duty works

Your buyer pays import duty in their own country. Under a free trade agreement, goods that originate in India can enter at a lower or zero rate instead of the normal (MFN) rate. Four conditions must all be met:

1. the product is covered by the partner country's tariff commitments (some lines are excluded or cut in stages);
2. the goods meet the agreement's rules of origin;
3. the buyer claims the preference with valid proof of origin;
4. the goods travel in line with the agreement's transport rules, usually direct or under customs control through a third country.

The saving goes to your buyer, but it is your selling point: a 10% duty saving can outweigh a small price difference against a competitor from a country without an agreement.

Agreements that matter now

Partner	Status	Note
UAE (CEPA)	In force since 1 May 2022	Wide duty-free access for Indian goods
Australia (ECTA)	In force since 29 December 2022	All Australian tariff lines duty-free for Indian goods from 1 January 2026
EFTA states: Switzerland, Norway, Iceland, Liechtenstein (TEPA)	In force since 1 October 2025	Check each state's schedule separately
Oman (CEPA)	In force since 1 June 2026	Duty-free access on about 98% of Oman's tariff lines
United Kingdom (CETA)	In force since 15 July 2026	Zero duty on about 99% of tariff lines, covering almost all of India's export value
New Zealand, European Union	NZ signed 27 April 2026; EU concluded, not yet signed	No preference until each enters into force

India also has older agreements with ASEAN, Japan, South Korea, SAFTA members, Mauritius and others. Use the Trade Agreements Checker to see which one covers your buyer's country.

Step 1: find the preferential rate

1. Find your product's code in the importing country's tariff. It shares the first six digits with your ITC(HS) code (use the HS Code Finder), but the national digits after that differ.
2. Look up both the MFN rate and the preferential rate for India in the partner's official tariff (for example, the UK Trade Tariff online), in ITC's Market Access Map or on DGFT's Trade Connect platform (trade.gov.in).
3. Check the staging: some lines reach zero only after several years, some are excluded, and some have tariff-rate quotas.
4. Agree the classification with your buyer. If their customs broker uses a different code, the preference claim can fail.

Step 2: check the rules of origin

Goods qualify in one of two broad ways.

Wholly obtained

Goods grown, harvested, mined or caught in India, and products made only from such materials, normally qualify. Most farm produce, fresh fish and minerals fall here.

Sufficiently processed

If you use imported inputs, the product must meet the product-specific rule for its HS code. Rules are usually one of these, or a combination:

• Change in tariff classification: the imported inputs must fall under a different chapter (CC), heading (CTH) or subheading (CTSH) from the finished product.
• Value content: a minimum share of the product's value must come from India (and, where cumulation is allowed, the partner country), calculated by the formula in the agreement.
• Specific process: a named operation must happen in India, common for textiles and chemicals.

Thresholds differ by agreement and product. Under the Oman CEPA, for example, value-addition requirements range from 1.5% to 45% depending on the product. Simple operations such as repacking, labelling, sorting or mixing never confer origin on their own. Most agreements also allow a small tolerance of non-originating materials and let you count inputs from the partner country as originating.

Step 3: get proof of origin

For most agreements you need a preferential certificate of origin. DGFT now issues these electronically on the Trade Connect ePlatform (trade.gov.in), which has taken over from the older platform at coo.dgft.gov.in. You need a digital signature certificate linked to your IEC.

1. Register on Trade Connect and choose the agreement.
2. Enter the invoice, HS code, description, quantity and the origin criterion you meet.
3. Upload supporting documents if the issuing agency asks for them.
4. Once approved, download the eCoO with its QR code and send it to your buyer before the goods arrive.

Some agreements allow self-certification. For the UK CETA, DGFT's Trade Notice 11/2026-27 of 13 July 2026 lets an exporter with a DSC linked to the IEC generate a self-declared eCoO on Trade Connect with no fee, or choose an agency-issued certificate instead. Check the rules for each agreement; self-certification shifts the full responsibility for accuracy to you.

Step 4: keep the evidence

The importing country's customs can ask India to verify your origin claim long after shipment. Keep cost sheets, bills of materials, supplier invoices, production records and any supplier origin declarations for the period the agreement requires. If you cannot prove origin, your buyer can lose the preference and face a demand for the full duty.

Common mistakes

• Assuming any goods made in India qualify, without checking the product-specific rule.
• Different HS codes or descriptions on the certificate, invoice and import entry.
• Claiming preference under an agreement that is signed but not yet in force.
• Routing goods through a third country, or invoicing from one, without checking the transport and invoicing rules.
• Applying for the certificate too late for the buyer's customs entry.

Related on Exportsmitra

• Trade Agreements Checker
• Certificates of origin: preferential and non-preferential
• Choosing export markets: free research tools that work
• Document Checklist Generator

Sources

• DGFT trade notices, including Trade Notice 11/2026-27 on India-UK CETA eCoO
• Trade Connect ePlatform
• PIB: India-UK CETA enters into force, 15 July 2026
• UK Government: UK-India CETA rules of origin
• All India Radio: duty-free access for all Indian exports to Australia under ECTA
• Khaitan & Co: India-Oman CEPA in force, rules of origin notification
• ITC Market Access Map

Last checked 1 October 2026. Rules change: confirm with DGFT or the certificate-issuing agency, and with your buyer's customs broker, before you act.