Dgft Mandates Electronic Platform For Issuance Of Certificates Of Origin Juris Hour
Effective May 20, 2026, the Directorate General of Foreign Trade (DGFT) mandates electronic issuance of Certificates of Origin (CoO) through a designated platform.
The Directorate General of Foreign Trade (DGFT) has mandated the electronic issuance of Certificates of Origin (CoO) through a newly designated platform, aiming to streamline trade processes and enhance transparency. This move impacts exporters claiming preferential tariff treatment under various Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs). The electronic platform is designed to reduce processing times and minimize manual errors, fostering a more efficient export environment. The DGFT's directive requires all authorized agencies to integrate with the electronic platform for CoO issuance. Exporters must register on the platform and submit their applications electronically, ensuring compliance with the new guidelines. Failure to comply may result in delays in customs clearance and denial of preferential tariff benefits. This shift aligns with the government's broader initiative to digitize trade-related processes, promoting ease of doing business and reducing transaction costs for exporters.
The Customs Act, 1962, read with the Foreign Trade (Development and Regulation) Act, 1992, empowers the DGFT to regulate import and export procedures. Non-compliance with DGFT directives can lead to penalties under the Foreign Trade (Development and Regulation) Act, including fines and suspension of export privileges. Section 11 of the Customs Act allows for the proper officer to examine or test imported goods.
The move to electronic CoO issuance reflects a broader trend towards digital governance in trade. CAs should advise clients to invest in training and infrastructure to adapt to these changes. Tax authorities may leverage data analytics to identify discrepancies and ensure compliance, increasing the need for accurate and timely reporting.
This mandate streamlines the CoO issuance process, reducing processing times and enhancing transparency for exporters. CAs and CFOs must ensure their export operations comply with the new electronic system to avoid trade disruptions.