India, New Zealand sign pact for electronic exchange of trade origin data | Economy & Policy News

India and New Zealand have signed a cooperation agreement to enable the electronic exchange of origin data for trade in goods, a move aimed at facilitating cross-border trade and improving the utilisation of tariff concessions under their free trade agreement (FTA).

The Memorandum of Cooperation (MoC) was signed by the Central Board of Indirect Taxes and Customs (CBIC) and the New Zealand Customs Service (NZCS), according to a statement issued by the finance ministry on Wednesday.

The agreement was signed on October 19 by CBIC Chairman Vivek Chaturvedi and New Zealand Customs Service Comptroller and Chief Executive Christine Stevenson. The India-New Zealand FTA came into force on October 20.

Under the arrangement, the two countries will enable the advance electronic exchange of origin data for goods traded between them. The mechanism is expected to improve customs cooperation, reduce information gaps and provide greater certainty to businesses engaged in bilateral trade.

The electronic exchange of origin data is also expected to improve operational efficiency and support the implementation of trade facilitation measures, the statement said.

The agreement is particularly relevant for businesses seeking to benefit from tariff concessions under the FTA. By facilitating the exchange of origin-related information, the arrangement is intended to help eligible traders access the benefits negotiated under the agreement more efficiently.

Rules of origin determine the country in which a product qualifies as originating for the purpose of receiving preferential tariff treatment under a trade agreement. Compliance with these rules is essential for importers seeking to claim lower or zero customs duties available under an FTA.

The MoC reflects the two countries’ efforts to strengthen customs cooperation through digitalisation and information exchange, in line with evolving international practices.