Rules of origin under Free Trade Agreement (FTA) to boost India's e-commerce exports to United Kingdom (UK)

The India-United Kingdom (UK) Free Trade Agreement (FTA), signed recently in London, is set to streamline e-commerce exports from India by easing documentation requirements for low-value consignments. As per an official, consignments valued below Rs. 1,17,143 (US$ 1,354) will be exempt from submitting origin documentation. This move is expected to significantly benefit Indian micro, small, and medium enterprises (MSMEs) and online sellers by reducing procedural delays and cutting compliance costs. The simplified process is aimed at encouraging higher volumes of smaller-value exports to the UK, a key market for Indian goods sold via global e-commerce platforms.
Beyond the ease of documentation, the FTA’s Rules of Origin provisions are designed to prevent trade circumvention. The agreement ensures that a product must undergo a prescribed level of value addition in India to qualify as an Indian-origin export. This will help guard against third-country dumping through simple repackaging or labelling. The official also highlighted added flexibility for Indian exporters, who will now have the option to self-certify the origin of their goods, enhancing ease of doing business. Likewise, UK importers will be allowed to use ‘importer’s knowledge’ for origin certification, easing compliance on both sides. Together, these measures are expected to boost bilateral trade flows, reduce transaction friction, and strengthen India’s digital and physical export ecosystems under the FTA framework.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.