New Compliance Rules for Exporters: DGFT Mandates Digital Certificate of Origin

The Directorate General of Foreign Trade (DGFT) has introduced important amendments to the Foreign Trade Policy (FTP) 2023 and the Handbook of Procedures (HBP) 2023. These changes, announced via gazette notifications, primarily focus on strengthening the framework for issuance, verification, and digitalization of the Certificate of Origin (CoO).

Understanding Certificate of Origin (CoO)

A CoO is an official document that certifies the country where goods are manufactured. It plays a critical role in international trade by enabling importing countries to determine applicable tariffs and regulatory treatment.

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CoOs are broadly classified into:

1. Preferential CoO: Issued under trade agreements such as FTAs, allowing exporters to benefit from reduced or zero customs duties.
2. Non-preferential CoO: Issued for general trade purposes where no tariff concessions apply.

Key amendments under Handbook of Procedures (Para 2.90)

The amendments to Para 2.90 of HBP 2023 introduce a fully digital and standardized mechanism for CoO issuance:

Authorized issuing agencies

Only agencies listed in Appendices 2B, 2C, 2D, and 2E are permitted to issue CoO.

Source: Foreign Trade Policy, procedures documents/appendices.

For a complete list of authorized agencies allowed to issue preferential and non-preferential CoOs, check out the DGFT portal; click here: www.dgft.gov.in/CP.

Mandatory digital processing

All applications and issuance of CoOs must now be carried out exclusively through the DGFT-designated electronic platform or any other platform notified in the future.

Prohibition on manual issuance

Manual issuance of CoOs or issuance outside the prescribed digital platform is not permitted. Non-compliance may result in revocation of authorization for the issuing agency.

This shift ensures greater transparency, traceability, and efficiency by mandating a fully digital workflow for CoO issuance.

DGFT reinforces regulatory oversight under FTP framework

In a separate gazette notification dated April 7, 2026, the DGFT introduced amendments to Para 2.62 of the FTP 2023, reaffirming its regulatory control over the issuance of CoO.

The revised provision clarifies that only DGFT-authorized agencies are permitted to issue CoOs, and such agencies must strictly adhere to prescribed procedures and operational guidelines. This is intended to ensure standardization and consistency in certification practices across jurisdictions.

Additionally, exporters are now mandated to declare identical invoice numbers in both the CoO and the shipping bill. This alignment facilitates automated cross-verification by customs systems, thereby reducing documentation mismatches and enhancing the integrity and efficiency of export processing.

Approved Exporter Scheme – Status quo maintained

The Approved Exporter Scheme, which enables self-certification of origin, continues without any regulatory changes.

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Under the scheme, eligibility is restricted to manufacturer-exporters holding a valid Status Holder recognition. Qualified exporters are permitted to self-certify the origin of goods, thereby facilitating access to preferential tariff concessions under applicable trade agreements, including FTAs, PTAs, CECAs, and CEPAs.

The scheme applies only to goods manufactured in facilities operating under valid industrial approvals, such as an Industrial Entrepreneur Memorandum (IEM), Industrial License, or Letter of Intent. Approval as an “Approved Exporter” is granted based on an assessment of the applicant’s infrastructure, production capacity, and availability of adequately trained personnel to ensure compliance with rules of origin.

Importantly, the scheme’s operational applicability is contingent upon its incorporation within specific trade agreements and formal notification by the DGFT, and remains subject to the conditions prescribed under the relevant treaty framework.

Overall impact on exporters

The combined amendments to FTP and HBP reflect a clear policy direction toward digitalization, standardization, and enhanced compliance:

• Improved transparency: Digital issuance reduces manual intervention and enhances traceability.
• Stronger compliance mechanism: Restricting issuance to authorized agencies ensures better regulatory oversight.
• Automated verification: Invoice alignment enables seamless cross-verification between trade documents.
• Continued facilitation: The self-certification scheme remains available, offering cost and time efficiencies for eligible exporters.

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Conclusion

Overall, these changes modernize India’s export documentation framework while aligning it with global best practices in trade facilitation and compliance.

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