DGFT Launches Enhanced Certificate of Origin System

The Directorate General of Foreign Trade (DGFT) has launched the enhanced Certificate of Origin (eCoO) 2.0 System. This upgrade aims to simplify the certification process for exporters. It enhances trade efficiency . The new platform includes several user-friendly features that streamline operations for exporters.

Key Features of eCoO 2.0

• The eCoO 2.0 System offers multi-user access.
• Exporters can now authorise multiple users under a single Importer Exporter Code (IEC).
• This feature facilitates teamwork and improves workflow.
• The system supports Aadhaar-based e-signing in addition to digital signature tokens. This flexibility allows for easier signing of documents.
• An integrated dashboard provides seamless access to eCoO services.
• Exporters can access Free Trade Agreement (FTA) information, trade events, and other essential resources from one location.

Mandatory Electronic Filing

As of 1st January 2025, electronic filing of Non-Preferential Certificates of Origin is mandatory through the eCoO 2.0 platform. Exporters can access this service through a website under the Get Certificate of Origin section. This requirement aims to enhance efficiency and reduce processing times for exporters.

Daily Processing Capacity

The eCoO 2.0 platform processes over 7,000 eCoOs daily. This includes both preferential and non-preferential certificates. The system connects 125 issuing agencies. This network comprises 110 national and regional chambers of commerce and industry. Over 650 issuing officers are also part of this unified system, facilitating smoother operations for all Indian exporters.

Introduction of Back-to-Back Certificates of Origin

DGFT has introduced procedures for online Back-to-Back Certificates of Origin. These certificates apply to goods not of Indian origin intended for re-export, trans-shipment, or merchanting trade. They are issued based on documentary evidence from the foreign country of origin. This ensures transparency and accuracy in trade documentation. The Back-to-Back CoO explicitly mentions details of origin and supporting documents.

Benefits for Global Supply Chains

The enhancements in the eCoO 2.0 System simplify the certification process. They also accelerate processing times. This is particularly beneficial for global supply chains involving intermediary trade through India. The system puts stress on DGFT’s commitment to facilitating trade. It improves the Ease of Doing Business for Indian exporters.

Questions for UPSC:

1. Examine the role of technology in enhancing trade efficiency in India.
2. Discuss in the light of recent developments the significance of the Certificate of Origin in international trade.
3. What is the concept of Free Trade Agreements? How do they impact global trade dynamics?
4. Critically discuss the implications of mandatory electronic filing on the certification process for exporters.

Answer Hints:

1. Examine the role of technology in enhancing trade efficiency in India.

1. Technology streamlines documentation processes, reducing time and effort for exporters.
2. Enhanced platforms like eCoO 2.0 facilitate multi-user access and Aadhaar-based e-signing.
3. Real-time data access improves decision-making and operational efficiency for businesses.
4. Automated systems increase accuracy in certification, minimizing errors and delays.
5. Integration of trade services encourages better communication between exporters and regulatory bodies.

2. Discuss in the light of recent developments the significance of the Certificate of Origin in international trade.

1. Certificates of Origin verify the origin of goods, influencing tariff rates and trade agreements.
2. Recent upgrades simplify the application process, enhancing accessibility for exporters.
3. They play important role in compliance with international trade regulations and standards.
4. The introduction of Back-to-Back CoOs promotes transparency in intermediary trade.
5. Efficient processing of CoOs facilitates smoother cross-border transactions and trade flows.

3. What is the concept of Free Trade Agreements? How do they impact global trade dynamics?

1. Free Trade Agreements (FTAs) are treaties between countries to reduce or eliminate trade barriers.
2. FTAs enhance market access for exporters and promote competitive pricing on goods.
3. They encourage economic cooperation and interdependence among member countries.
4. FTAs can lead to increased foreign direct investment and economic growth.
5. However, they may also create trade imbalances and affect local industries in some cases.

4. Critically discuss the implications of mandatory electronic filing on the certification process for exporters.

1. Mandatory electronic filing simplifies the submission process, reducing paperwork and processing time.
2. It enhances data accuracy and reduces the risk of human error in certification applications.
3. Exporters may face initial challenges in adapting to new digital systems and protocols.
4. Increased transparency in the certification process can improve trust among trading partners.
5. Overall, it represents shift towards modernization in trade facilitation practices.