The Comprehensive Economic and Trade Agreement (CETA) signed with the UK will facilitate e-commerce exports from India, as it exempts imports valued below 1,000 pounds from the proof of origin, officials said.
Easier market access for small exporters
Proof of origin is required under the Rules of Origin (ROO) of a trade agreement. These rules prescribe the minimum value addition for a product in the exporting country to qualify for preferential market access. The value addition is certified by nominated agencies in the exporting country.
The consignments valued under 1000 pounds come under e-commerce and are sent through courier or post and not as bulk cargo on ships. The exemption will remove the requirement for exporters to get their products certified so that they can enter the UK on lower duties or duty free.
In the CETA, both India and UK have opted for product-specific rules of origin, implying that they are different for different products. This has been done in view of the fact that reliance on imported inputs of different products vary.
India targets bigger share in global e-commerce
To promote exports through e-commerce, the government is setting up special hubs across the country.
Global e-commerce exports are expected to touch $2 trillion in 2030 from $800 billion currently. India’s exports through this medium are only about $5 billion, as compared to China’s $250 billion annually.
China, which is a leader in e-commerce exports, is also a pioneer in export hubs for e-commerce. China’s exports through this route are 6.4% of its total merchandise exports in 2023, while for India this figure stands at 1.14%.