Request for Comments on proposed PSRs under India-EU FTA

Cir(104)/2023                                               September 7, 2023



Dear Sir/Madam,

As you are aware that India-EU FTA negotiations are going on. In this regard, the Ministry of Commerce held a consultation meeting to discuss the EU’s proposals for Product Specific Rules (PSR) for the Textile Sector.

During the meeting, it was informed that the EU has proposed Process Rules for India like its other FTAs. For example, Yarn will be considered of EU/Indian origin if it undergoes the following process(es):


Spinning of natural fibres; Extrusion of man-made fibres combined with spinning; or Twisting combined with any mechanical operation.

As per EU, these Process Rules are not just easy to implement but also easy to verify. A deatiled list of HSN code-wise PSR is given in Annex 1 for the kind reference of members.

It was also informed that in the definition of Rules of Origin, the EU is proposing the concept of Ex Works (EXW) Price instead of FOB Price which is prevailing in India as the EXW concept is already there in the GSP mechanism. The ROO definitions for Textiles are given in Annex 2.

Members are requested to kindly go through the attached documents and share their feedback by 10th September 2023 so that the same can be compiled and shared with the Department of Commerce for necessary action.

Thanking you,

Yours faithfully,

(Chandrima Chatterjee)

Secretary General