India and New Zealand ink customs pact for electronic exchange of trade origin data

Key facts

• India and New Zealand signed a Memorandum of Cooperation (MoC) to enable electronic exchange of origin data for trade in goods, aimed at facilitating cross-border trade and improving utilisation of tariff concessions under their free trade agreement (FTA).
• The MoC was signed on October 19 by Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Chaturvedi and New Zealand Customs Service (NZCS) 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 advance electronic exchange of origin data to improve customs cooperation and reduce information gaps for businesses.
• Rules of origin determine the country in which a product qualifies as originating for receiving preferential tariff treatment under a trade agreement, and compliance is essential for importers claiming lower or zero customs duties under an FTA.