Summary:

The newly concluded India-UK Free Trade Agreement (FTA) intends to increase e-commerce exports by reducing paperwork requirements for low-value consignments. Shipments under ₹1,17,143 (US$1,354) are excluded from origin paperwork, helping Indian MSMEs and online merchants by reducing delays and compliance expenses. The move encourages more small-value exports to the UK. The FTA further enhances the Rules of Origin to avoid trade evasion by requiring adequate value addition in India for items to be classified as Indian-origin. Exporters can now self-certify their origin, while UK importers can use 'importer's knowledge,' which simplifies procedures for both parties. These reforms are designed to minimise transaction friction, increase trade flows, and improve India's digital and physical export ecosystems, hence strengthening bilateral trade connections under the FTA framework.

Source: IBEF

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