India-UK FTA: E-commerce consignments under £1,000 exempt from origin requirements
What's the story
The trade agreement signed between India and the UK is expected to facilitate India's e-commerce exports. The deal exempts e-commerce consignments sent via courier or post worth less than £1,000 from proof of origin requirements. This exemption is a major relief for small exporters as it removes the need for them to get their products certified for entry into the UK at lower or no duties.
Trade regulations
Rules of Origin in trade agreements
Proof of origin is a key requirement under the Rules of Origin (ROO) in trade agreements. These rules define the minimum value addition for a product in its exporting country to qualify for preferential market access. The value addition is certified by designated agencies in the exporting country.However, with the trade agreement between India and the UK, e-commerce consignments sent via courier or post worth less than £1,000 are exempt from this requirement, easing market access for small exporters.
Trade specifics
Product-specific rules of origin under India-UK trade agreement
Under the trade agreement between India and the UK, India and the UK have opted for product-specific rules of origin. This means that the rules differ for different products, depending on their reliance on imported inputs in each country. The move is aimed at facilitating trade by recognizing the unique characteristics of various products and their supply chains.
Export strategy
India's e-commerce export target and current scenario
The Indian government is working to boost e-commerce exports by setting up special hubs across the country. Global e-commerce exports are projected to reach $2 trillion by 2030, up from the current $800 billion. However, India's share in this is just about $5 billion, compared to China's whopping annual export figure of $250 billion through this medium.