Rules of origin explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The India-Afghanistan rules of origin decide which goods qualify for preferential treatment under the preferential trade agreement between India and Afghanistan. India's rules were made by Notification No. 33/2003-Customs (N.T.) dated 13 May 2003 and came into force on the date of their publication in the Official Gazette. The official title is the Customs Tariff (Determination of Origin of Goods under the Preferential Trade Agreement between the Transitional Islamic State of Afghanistan and Republic of India) Rules, 2003. This article explains the thirteen rules and the form of certificate attached to them.
This article reads the rules as amended up to Notification No. 33/2003-Customs (N.T.) dated 13 May 2003, the notification that made them (CBIC text; no amendment found in CBIC's 2023-2026 lists). Later notifications should be checked before you rely on the current text.
Check whether the agreement and these rules are still operative. The rules were made in 2003 and the text says nothing about whether they remain in use today or have been replaced. Before relying on them for a live claim, confirm the current operation of the agreement and any later notification; this article only describes what the rules print.
Products are eligible for preferential treatment if they are wholly produced or obtained in the exporting contracting party (rule 6) or, if not, the value of non-originating materials does not exceed 50 per cent of the FOB value, the product has a four-digit heading change and the final process is in the exporting party (rule 7). For cumulation, value addition in the exporting party must be at least 30 per cent with an aggregate of at least 40 per cent (rule 8). The importer must make the claim and produce evidence at importation (rule 4).
What the rules are and how they apply
The rules are made under section 5(1) of the Customs Tariff Act, 1975. Rule 2 applies them to goods consigned from the territory of either contracting party. Rule 3 says no product is deemed to be the produce or manufacture of either country unless the conditions are met to the satisfaction of the appropriate authority. The rules print no tariff concession or duty rate; the explanation to rule 4 identifies the preferential treatment as the exemption granted under the customs notification of 13 May 2003 and its concessions.
If you are checking whether to rely on these rules, a short legal consultation can confirm the position for your product. On the Indian import side, preferential claims follow the customs procedure explained in our articles on Rules 1 to 4 of the CAROTAR and Rules 5 to 8 of the CAROTAR.
Rule 4: declaration at the time of importation
The importer must, at the time of importation, (a) make a claim that the products are the produce or manufacture of the country from which they are imported and are eligible for preferential treatment under the agreement, and (b) produce the evidence specified in the rules. The rules print no late-claim procedure, so the declaration and evidence should be ready when the goods are entered.
Origin criteria (rules 5 to 8)
Rule 5: originating products
Products covered by the agreement and consigned directly within the meaning of rule 9 are eligible for preferential treatment if they are wholly produced or obtained in the exporting party (rule 6), or not wholly produced or obtained and eligible under rule 7, or rule 8 read with rule 7.
Rule 6: wholly produced or obtained
These include raw or mineral products, including mineral fuels, lubricants and ores, extracted from soil, water or seabed; vegetable products including agricultural and forestry products harvested there; animals born and raised there and their products; products of hunting or fishing; sea-fishing products from the high seas by the party's vessels and goods made on board its factory ships from them; used articles collected there fit only for recovery of raw materials; waste and scrap from manufacturing; seabed products outside territorial waters where the party has exclusive exploitation rights; and goods produced exclusively from these. Explanations define "vessels" (with equity conditions of at least 60 per cent owned by citizens or the government of the party, or 75 per cent by citizens and governments of the contracting parties), say the flag requirement does not apply to vessels operated by government agencies, and define "factory ship".
Rule 7: not wholly produced or obtained
- Rule 7(a): products are eligible if the total value of materials, parts or produce from countries other than the contracting parties, or of undetermined origin, does not exceed 50 per cent of the FOB value and the final process of manufacture is performed in the exporting party.
- Rule 7(b): non-originating materials are sufficiently worked or processed when the product is classified in a heading at the four-digit level of the Harmonised System different from those of all non-originating materials.
- Rule 7(c): it is not necessary to establish whether power and fuel, plant and equipment, and machines and tools used originate in third countries.
- Rule 7(d): insufficient operations, whether or not the heading changes: preservation, simple removal of dust, sifting, sorting, washing, painting and cutting up, changes of packing, simple slicing and repacking, affixing marks and labels, simple mixing, simple assembly, slaughter, and combinations.
- Rule 7(e): non-originating materials are valued at CIF at importation where it can be proven, or at the earliest ascertainable price for materials of undetermined origin.
Rule 8: cumulative rules of origin
For a product complying with rule 5(b), exported by one party and using material, parts or products originating in the other, the value addition in the exporting party must be not less than 30 per cent of the FOB value, and the aggregate value addition in both parties not less than 40 per cent. The Explanation says only products that have acquired originating status in one party may be counted as inputs for a finished product eligible in the other.
| Test | Rule | As printed |
|---|---|---|
| Wholly produced or obtained | 6 | Closed list |
| Value limit | 7(a) | Non-originating and undetermined-origin materials not above 50 per cent of FOB value |
| Tariff change | 7(b) | Four-digit heading different from all non-originating materials |
| Cumulation | 8 | Exporting party value addition at least 30 per cent; aggregate at least 40 per cent |
Consignment, packing and the certificate (rules 9 to 11)
Rule 9, direct consignment: goods are directly consigned if transported without passing through any third country, or through intermediate countries with or without transshipment or temporary storage, provided the transit is justified for geographical reasons or transport requirements, the goods have not entered trade or consumption there and have undergone only unloading, reloading or operations to keep them in good condition.
Rule 10, packing: packing is considered as forming a whole with the product it contains, but may be treated separately if national legislation requires.
Rule 11, certificate of origin: products eligible for preferential treatment are supported by a certificate of origin in the form annexed, issued by an authority designated by the government of the exporting country and notified to the other, in accordance with certification procedures to be devised and approved by both parties. The rules print no validity period, time limit for issue, or verification timetable. The notes to the form ask the exporter to enter in Box 8 a letter showing the criterion met: a first letter for wholly obtained products, a second followed by the percentage of non-originating content as a share of FOB value for rule 7 products, and a third followed by the aggregate originating content for rule 8 products. Our guide on how to get a certificate of origin in India covers the Indian issuing side.
Prohibitions and cooperation (rules 12 and 13)
Rule 12: either country may prohibit importation of products containing inputs originating from states with which it has no economic and commercial relations. Rule 13: the contracting parties co-operate to specify origin of inputs in the certificate; take measures to address, investigate and, where appropriate, take legal or administrative action against circumvention through false declarations or falsified documents; co-operate fully in cases of circumvention, including joint plant visits and contacts; and hold prompt consultations if either party believes the rules are being circumvented.
A practical example
Kabul Dry Fruits exports a processed product to India. Third-country packaging materials and additives make up 42 per cent of the FOB price, and the product is classified in a different four-digit heading from each of them. Rule 7(a) allows up to 50 per cent, so the value limit and the heading change are met. The Indian importer makes the claim at the time of importation under rule 4 and produces the certificate in the annexed form, with the origin criterion entered in Box 8.
Need help with Afghanistan trade?
Because the agreement is a legacy one and its current operation needs to be confirmed, it pays to check the position before planning around a preference. Our legal consultation team can help you read the rules against any later notification and advise how to document a claim. For related rules, see the SAFTA rules of origin and the India-Sri Lanka trade agreement rules of origin.
Key takeaways
- The rules are a legacy set; check the current operation of the agreement before relying on them.
- The importer claims origin at the time of importation and produces evidence (rule 4).
- Two routes: wholly produced or obtained (rule 6), or the 50 per cent limit plus a four-digit heading change (rule 7).
- Cumulation needs 30 per cent value addition in the exporting party and 40 per cent aggregate (rule 8).
- Direct consignment is required (rule 9).
- The rules print no validity period or verification timetable for the certificate.
Read next
- Rules of origin under SAFTA
- Rules of origin under the India-Sri Lanka trade agreement
- Rules of origin for least developed countries under India's DFTP scheme
- How to get a certificate of origin in India
Disclaimer: Based on the Customs Tariff (Determination of Origin of Goods under the Preferential Trade Agreement between the Transitional Islamic State of Afghanistan and Republic of India) Rules, 2003 as published on the CBIC Tax Information Portal, as consulted on 3 October 2026. Later notifications, duty notifications and the Customs Tariff Act, 1975 should be checked. This article is general information, not legal advice; check the official text before acting.