NEW DELHI : India is considering tighter origin rules to check imports of cheap and substandard shipments from third countries taking advantage of New Delhi’s Free Trade Agreements (FTAs).

The Commerce and Industry Ministry is exploring certain criteria which have been used in the trade pacts inked by developed countries.

“The terminologies used in the rules of origin are evolving rapidly and we are looking at those which are being used frequently, especially by developed countries. The idea is to check circumvention and cheap imports,” said an official.

Conditions such as minimal operations, de-minimise or tolerance, accumulation, accounting segregation, transitional arrangements and absorption or roll over principles are being considered, some of which are already in India’s FTAs.

Accounting segregation can be a criterion for products that are of the same kind, commercial quality, and technical and physical characteristics, and which cannot be distinguished from one another for origin purposes. The absorption or roll-up principle allows intermediate products to maintain their originating status when they are used for subsequent manufacturing operations.