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-EFTA TEPA rules of origin decide which goods qualify for preferential treatment when traded between India and Iceland, Norway or Switzerland (Liechtenstein products are treated as Swiss). They were made by Notification No. 59/2025-Customs (N.T.) dated 29 September 2025 and are in force from 1 October 2025. This article explains the rule structure: origin criteria, tolerance, accumulation, proof of origin, direct transport, record keeping and verification.
This article reads the rules as amended up to Notification No. 59/2025-Customs (N.T.) dated 29 September 2025, the notification that made them (in force 1 October 2025; no amendment found in CBIC's 2023-2026 lists). Later notifications should be checked before you rely on the current text.
A product is originating if it is wholly obtained in a Party (rule 4) or its non-originating materials have undergone sufficient working or processing under Annexure-A (rules 3 and 5). Non-originating materials need not meet Annexure-A if their value is not more than 10 per cent of the FOB value or ex-works price, within the maximum shown in Annexure-A (rule 5(2)). Proof is an origin declaration, EUR.1 or a certificate of origin, valid for twelve months (rule 14).
What the rules are and who they cover
The rules are made under section 5(1) of the Customs Tariff Act, 1975 and are named the Customs Tariff (Determination of Origin of Goods under the Trade and Economic Partnership Agreement between India and the EFTA States) Rules, 2025. Rule 2(a) defines the agreement as the TEPA signed on 10 March 2024, and rule 2(e) defines the EFTA States as Iceland, Liechtenstein, Norway and Switzerland. Under rule 2(k) a "Party" is India, Iceland, Norway or Switzerland, and, because of the customs union between Switzerland and Liechtenstein, a product originating in Liechtenstein is considered as originating in Switzerland.
"Competent authority" is the Department of Commerce for Indian exports and CBIC for imports, and the customs authorities of the respective EFTA State (rule 2(c)). The rules print no tariff concession or duty rate; those are in the agreement and in the customs notifications.
On the Indian side, claims are administered through the customs rules described in our articles on Rules 1 to 4 of the CAROTAR and Rules 5 to 8 of the CAROTAR. If you are starting to export to EFTA markets, an Importer-Exporter Code comes first, and our IEC registration service can set that up.
The origin criteria (rules 3 to 6)
Rule 3 gives two routes: the product is wholly obtained in a Party (rule 4), or the non-originating materials used have undergone sufficient working or processing in a Party (rule 5).
Wholly obtained products (rule 4) include mineral products taken from the soil or seabed, vegetable products harvested there, live animals born and raised there and their products, products of hunting, trapping, fishing or aquaculture, sea catch by vessels registered in and flying the flag of a Party, products of heading 30.02 and 30.04 obtained by plant or animal cell cultures, products of Chapters 29 to 35 obtained by fermentation, waste and scrap fit only for recovery of raw materials or recycling, and products made exclusively from those.
Sufficient working or processing (rule 5): a product listed in Annexure-A has undergone sufficient processing if the product-specific rules in that annexure are fulfilled. Rule 5(2) adds the tolerance: non-originating materials do not have to meet Annexure-A conditions if (a) their total value does not exceed 10 per cent of the FOB value or ex-works price and (b) the maximum value of non-originating materials set out in Annexure-A is not exceeded by applying the sub-rule. This article does not list the product-specific rules; read the entry for your own product in Annexure-A.
Insufficient working or processing (rule 6): a product is not originating if it has only undergone operations such as preservation, freezing or thawing, packaging and re-packaging, washing and cleaning, ironing of textiles, simple painting and polishing, husking and polishing of cereals and rice, peeling, sharpening, simple grinding or cutting, sorting and grading, simple bottling and packing, labelling, simple mixing, simple assembly or disassembly, slaughter or a combination of these. "Simple" means activities needing neither special skills nor specially produced or installed machines (rule 6(2)). All operations in a Party are taken together (rule 6(3)).
Accumulation, units and related rules (rules 7 to 12)
| Rule | Subject | As printed |
|---|---|---|
| 7 | Accumulation of origin | A product originating in one Party and used as material in another Party is considered as originating where the last operations beyond rule 6(1) were carried out; origin is kept if no more than those operations are done; where materials from several Parties are used, the material with the highest customs value decides |
| 8 | Unit of qualification | Follows the Harmonized System; retail packaging classified with the product is counted for value tests, not for tariff-shift tests; transport containers are ignored; sets and identical products in a consignment are treated as the rule states |
| 9 | Accessories, spare parts and tools | Part of the product if normal equipment, included in the FOB value or ex-works price or not separately invoiced |
| 10 | Neutral elements | Energy, fuel, plant and equipment, machines and tools that do not enter the final composition are ignored |
| 11 | Accounting segregation | Inventory management system for fungible materials, with prior authorisation of the exporting Party's authority, records kept and authorisation withdrawable for improper use |
| 12 | Territoriality | Conditions must be fulfilled without interruption in the territory of a Party; an originating product returned from a non-Party after only preservation operations keeps its status |
Direct transport (rule 13)
Preferential treatment is granted only to originating products transported directly between the Parties (rule 13(1)). A product may pass through or be stored in non-Party territory if it undergoes only unloading, reloading, splitting loads or operations to preserve it, and stays under customs control (rule 13(2)). Customs may ask the importer for a single transport document covering the passage, a statement of non-manipulation from the transit country's customs, or other substantiating documents (rule 13(3)). Pipelines across non-Party territory are allowed (rule 13(4)).
Proof of origin and importation (rules 14 to 17)
Under rule 14(1) the proof of origin can be:
- an origin declaration by an approved exporter in an EFTA State (Annexure-B);
- a movement certificate EUR.1 issued by the customs authority of an EFTA State (Annexure-D);
- a certificate of origin issued by authorised agencies of India (Annexure-C); or
- a self-declared certificate of origin by an exporter of India (Annexure-C).
The exporter accepts full responsibility for any proof it completes or applies for (rule 14(2)), and a proof is valid for twelve months from completion or issue (rule 14(3)). For general background, see our guides on how to get a certificate of origin in India and self-certification of origin.
Importation (rule 15): the importer requests preferential treatment at the time of importation and submits the proof of origin. If it does not hold the proof then, it may claim at importation and present the proof later under the importing Party's law (rule 15(3)). The proof must be submitted within the twelve-month period; that period may be suspended while the goods remain under customs control, and after it a proof is accepted only in exceptional circumstances (rule 15(4)). A Party may waive proof for non-commercial low-value shipments and goods in a traveller's personal luggage (rule 15(5)).
Cooperation and records (rule 16): the exporter keeps a copy of the proof and all supporting documents for five years from completion or issue, and the importer keeps the proof and documents for five years from the grant of preferential treatment, in each case or longer if the domestic law requires. Both must immediately notify if they become aware that a proof contains incorrect information.
Non-Party invoicing (rule 17): a claim cannot be denied only because the invoice was issued by a non-Party operator or in a non-Party.
Verification (rule 18)
Verification follows the authenticity check of the proof. For an Indian importer relying on an origin declaration, India's customs authority may make a request for verification of authenticity to the competent authority of the exporting Party, which must confirm or reject authenticity within forty-five working days unless Annexure-B says otherwise (rule 18(2)).
The importing customs authority first asks the importer in writing for information (rule 18(3)). If that is insufficient, it makes a written request to the exporting Party's authority within five years of issuance or completion of the proof, and the exporting side acknowledges within forty-five days (rule 18(5)). The exporting side may check accounts, ask questions or visit premises (rule 18(6)) and must report within ten months of receiving the request, unless agreed otherwise (rule 18(7)). Confidential information may be withheld, but the authority must say what it reviewed and whether it supports the claim (rule 18(8)). A visit may be requested in exceptional circumstances within thirty days of the response, and the exporting side replies within thirty days (rule 18(10)). Up to two observers may attend a visit, subject to the exporter's agreement and reasonable conditions (rule 18(11)). The goods are released during verification against payment of duty or security (rule 18(14)).
Denial, suspension and other provisions (rules 19 to 24)
- Rule 19: the importing Party may deny preferential treatment or recover unpaid duty where the product does not meet the rules or compliance is not shown. A denial must come with a reasoned determination to the importer, shared with the exporting authority. Where an exporter persistently or deliberately issues proofs wrongly, the Parties consult, and the importing Party may temporarily suspend treatment for that exporter. Suspension for a whole product needs the Joint Committee's recommendation (rule 19(6) and (7)).
- Rule 20: exchange of specimen stamps and contact points through the EFTA Secretariat.
- Rule 21: confidentiality, with disclosure in proceedings allowed under domestic law.
- Rule 22: penalties under domestic law.
- Rule 23: goods in transit or storage on the date the agreement entered into force can get treatment, with a proof completed retrospectively up to nine months after entry into force.
- Rule 24: the Sub-Committee on Rules of Origin, which meets at least every two years.
A practical example
Alpine Spices, an Indian exporter, ships a blended product to Norway. It checks the entry in Annexure-A for the product's heading, finds that non-originating materials make up 8 per cent of the ex-works price and that this is within the Annexure-A maximum, and so relies on the 10 per cent tolerance in rule 5(2). It obtains a certificate of origin from an authorised Indian agency, keeps all supplier documents for five years and makes sure the shipment goes directly to Norway.
Need help with EFTA exports or imports?
Matching a product to Annexure-A, choosing between a certificate and a self-declared certificate, and holding records for five years are separate steps. Our IEC registration team can help new exporters and importers set up before they rely on an EFTA preference. Related overviews are the India-UK CETA rules of origin and the India-Oman CEPA rules of origin.
Key takeaways
- Two routes to origin: wholly obtained or sufficient working or processing under Annexure-A.
- Tolerance is 10 per cent of the FOB value or ex-works price, within Annexure-A's maximum (rule 5(2)).
- Direct transport is required, with limited operations allowed in transit.
- Proof of origin: origin declaration, EUR.1, certificate of origin or self-declared certificate, valid twelve months.
- Records are kept for five years by exporters and importers.
- Verification requests may reach back five years, with a ten-month report period.
Read next
- Rules of origin under the India-UK CETA
- Rules of origin under the India-Oman CEPA
- Rules 1-4 of the CAROTAR, 2020
- Self-certification of origin: the approved exporter route
Disclaimer: Based on the Customs Tariff (Determination of Origin of Goods under the Trade and Economic Partnership Agreement between India and the EFTA States) Rules, 2025 as published in the Gazette and 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.