India, Brazil-led bloc Mercosur ink pact to accept electronic Certificates of Origin

New Delhi: India and Mercosur, a bloc of five South American countries, have signed an agreement to accept Certificates of Origin in electronic form instead of only paper documents, in a move aimed at facilitating paperless trade between the two sides, according to a government statement.

To seek duty concessions under a trade pact, an importer has to furnish proof or a 'certificate of origin' of a product from the FTA (free trade agreement) partner.

Also read: India to set up central processing department for faceless trade facilitation


"India and Mercosur signed the first additional protocol to the India-Mercosur Preferential Trade Agreement (PTA) to facilitate acceptance of electronic Certificates of Origin, marking an important step towards facilitating paperless trade and modernising customs procedures," the commerce ministry said on Monday.

Mercosur is a trade bloc in South America comprising Brazil, Argentina, Bolivia, Uruguay, and Paraguay. The India-Mercosur PTA came into effect on June 1, 2009. The agreement provides preferential tariff concessions on 450 tariff lines or product categories by India and 452 tariff lines by the Mercosur side.

The signing provides that "Certificates of Origin issued in electronic format shall have the same legal validity and identical value as Certificates of Origin issued in paper format," it said.

The electronic certificates will be required to be issued and electronically signed in accordance with the respective domestic legislation of the two sides.

"The move is expected to facilitate the transition towards digital and paperless trade documentation, reduce transaction costs and processing time associated with the issuance and verification of Certificates of Origin, and improve the efficiency of preferential trade under the existing India-Mercosur PTA," it added.

Also read: India, UAE discuss new possibilities in strategic energy infrastructure on sidelines of BRICS 2026

It said the protocol will come into force upon completion of the respective internal procedures by India and the Mercosur parties and notification of the same to each other.

It was was signed by Commerce Secretary Rajesh Agarwal and Ambassador of Uruguay to India Alberto Guani, and Ambassador of Paraguay to India Fleming Raul Duarte Ramos.