Trade Terminology Lexicon

A certification granted by customs authorities to businesses demonstrating compliant, reliable operations. AEO-certified exporters receive faster customs clearance, fewer inspections, and priority processing. India (AEO) and EU (AEO-C/AEO-S/AEO-F) have separate schemes. The India–EU FTA is expected to include mutual recognition provisions enabling Indian AEOs to benefit from fast-track EU customs clearance.

The biologically active component in a pharmaceutical product that produces the intended therapeutic effect. Indian API manufacturers supply approximately 20% of global API volumes. EU pharma manufacturers rely heavily on Indian APIs — an FTA-driven reduction in API import duties strengthens this corridor further.

An Indian statutory body under the Ministry of Commerce that promotes export of designated agricultural and processed food products. APEDA registration is mandatory for Indian exporters of scheduled products (rice, fresh fruits/vegetables, processed food, meat). APEDA-registered exporters gain access to government export promotion schemes and buyer databases.

An international customs document allowing temporary duty-free import of goods across signatory countries. Used primarily for: trade fair exhibits, professional equipment, samples not for sale. Issued in India by FICCI and ASSOCHAM. Valid for 1 year. Avoids deposit or bond at each customs border — essential for sample shipments to EU trade shows.

A regional intergovernmental organisation of 10 Southeast Asian nations. India has a comprehensive FTA with ASEAN (in force since 2010). Key relevance: ASEAN is India's 2nd largest trading partner and a critical re-export hub (particularly Vietnam, Singapore) for goods transiting to EU markets. ASEAN also features in trilateral India–ASEAN–EU trade routing strategies.

The primary document in sea freight trade — simultaneously: (a) a receipt from the shipping line confirming goods loaded on vessel, (b) a document of title (whoever holds the original B/L owns the goods), and (c) a contract of carriage between shipper and carrier. Ocean Bill of Lading (OBL): negotiable — title transfers when B/L is endorsed. Telex Release: shipper instructs carrier to release goods at destination without physical B/L presentation. Sea Waybill: non-negotiable — only consignee can collect.

India's national standardisation and quality certification body. BIS certification is mandatory for certain products sold in India and increasingly referenced for export documentation. Products requiring mandatory BIS certification for EU export include electronics (EMC testing), toys (EN 71 equivalent), and certain electrical goods. BIS mark does not substitute for EU CE marking but provides a baseline quality credential.

The official name of the India–EU Free Trade Agreement, negotiations for which concluded in principle in early 2026. The BTIA covers: goods (tariff schedules), services (all GATS modes), investment protection (ISDS provisions), intellectual property (GI chapter), government procurement, and trade facilitation. The name "BTIA" is being used alongside "India–EU FTA" interchangeably.

A secondary Letter of Credit issued by the intermediary's bank, backed by an original ("master") LC received from the ultimate buyer. Used in merchant trading arrangements where the intermediary does not want to reveal the identity of the underlying supplier to the buyer. Global Nexus uses back-to-back LC structures in documentation-led mercantile trading mandates.

A commitment by a bank to pay a specified amount to a beneficiary if the applicant fails to fulfil contractual obligations. Common types in India–EU trade: Performance Guarantee (supplier will deliver as contracted), Advance Payment Guarantee (seller will repay advance if they fail to ship), and Bid Bond (tenderer will sign contract if awarded). Issued via SWIFT MT760.

An EU regulation requiring EU importers of certain carbon-intensive goods to pay for embedded carbon emissions. CBAM applies (from 2026, full financial obligations) to: iron and steel, cement, aluminium, fertilisers, electricity, and hydrogen — and derived products. Indian exporters in scope must provide carbon intensity data (verified by an EU-accredited verifier) to their EU buyers. Non-compliance risks import denial or financial penalties.

The primary commercial document protecting the intermediary's right to commission. A three-party agreement specifying: commission rate (as % of deal value), trigger event (LC settlement, buyer payment, invoice date), payment currency and timeline, mandate scope and territory, tail period (commission due after agreement expiry), and governing law. Global Nexus requires this to be executed before any commercial introduction.

A mandatory conformity marking for products sold in the European Economic Area, indicating the product meets EU safety, health, and environmental requirements. Not a quality mark — it is a declaration of conformity to applicable EU directives (machinery, medical devices, PPE, toys, electronics, etc.). CE marking requires: identification of applicable directives, conformity assessment (self-declaration or notified body), technical file, and Declaration of Conformity. Indian exporters must ensure CE compliance before any EU shipment.

A type of trade agreement covering goods, services, investment, and sometimes other areas (competition, IP, government procurement). Examples relevant to Indian exporters: India–UAE CEPA (in force 2022), India–Australia ECTA/CEPA, India–Korea CEPA. The term is used by India for its comprehensive bilateral agreements; the EU uses "Free Trade Agreement" (FTA) for the equivalent.

An Incoterm where the seller pays freight and insurance to the named destination port but risk transfers when goods pass the ship's rail at the port of origin. Commonly used on Indian export invoices when the seller wants to quote an inclusive price to the EU destination. Important: the EU customs value for duty calculation is typically the CIF value at the EU port of entry — higher than FOB value.

A document certifying the country of manufacture of exported goods. Types: Non-preferential CoO (standard proof of origin, no duty benefit), Preferential CoO (enables FTA duty reduction — e.g., Form A/GSP, EUR.1, REX declaration). Issued in India by: Chambers of Commerce (non-preferential and some preferential), DGFT (for certain schemes), and increasingly self-certified by REX-registered exporters. Post-FTA, the REX self-certification system replaces EUR.1 for India–EU shipments.

A company that provides pharmaceutical manufacturing services on a contract basis. India has a large CMO sector (WHO-GMP and EUGMP certified) providing formulation, API synthesis, and packaging services for global pharma brands. EU pharma companies are increasingly engaging Indian CMOs for cost reduction (30–60% savings vs. European CMO rates) — facilitated under Vertical 15 (Pharma/Nutra CMO Outsourcing).

A Portuguese residency visa for self-employed professionals and entrepreneurs establishing businesses in Portugal. Unlike the (now-closed) Golden Visa real estate route, D2 requires a viable business plan demonstrating economic activity in Portugal. No minimum investment threshold — but requires business registration, a viable revenue projection, and typically demonstrated intent to reside. Vinod Kumar Jain and Amit Jain are D2 co-applicants, giving Global Nexus direct practitioner knowledge of the process.

A payment method where the seller's bank releases shipping documents to the buyer upon the buyer's acceptance of a time draft (promise to pay at a future date). Riskier than LC — the seller has shipped goods before receiving payment. Used only for established buyer–seller relationships with solid credit history. Typically structured as 30, 60, or 90 days after B/L date.

A payment method where the seller's bank releases shipping documents to the buyer only upon actual payment (sight draft). Safer than DA — buyer must pay to get documents (and thus goods). Does not provide the same security as an LC because there is no bank commitment to pay — the buyer could refuse payment and abandon the shipment.

India's primary trade policy and regulatory body under the Ministry of Commerce. Key DGFT functions relevant to exporters: IEC (Importer Exporter Code) issuance, REX registration, MEIS/RODTEP scheme administration, advance authorisation, EPCG licences, and Foreign Trade Policy implementation. All Indian exporters must have a valid IEC from DGFT before any export shipment.

An Incoterm where the seller bears all costs and risk until goods are delivered to the buyer's premises — including EU import duty and VAT. The most seller-favourable Incoterm from a buyer perspective (single all-inclusive price), but requires the Indian exporter to have an EU-registered entity or a customs agent with power of attorney for import declaration. Used in D2C/Amazon FBA arrangements where the Indian seller acts as the EU importer of record.

A unique identifier assigned by EU customs authorities to businesses involved in importing, exporting, or customs activities in the EU. EU importers must have an EORI number to file import declarations and pay customs duties. Non-EU businesses wishing to import directly into the EU must register for EORI in the first EU member state of import. Indian exporters who ship DDP must obtain an EU EORI number (typically via their EU customs agent).

EU Regulation 2023/1115 requiring due diligence for certain commodities and products associated with deforestation — soy, cattle, palm oil, wood, cocoa, coffee, rubber, and derived products (including leather and paper). Applicable from December 2024 (large operators) and June 2025 (SMEs). Indian exporters of leather goods, wood products, rubber, or palm oil derivatives must provide geolocation data and due diligence statements demonstrating the product did not originate from deforested land.

A preferential origin certificate enabling duty reduction under EU trade agreements. For India–EU trade under GSP (pre-FTA), EUR.1 was not used — GSP Form A was the preferential certificate. Under the India–EU FTA, the REX self-certification system will replace paper certificates for registered exporters. Non-REX exporters may still use EUR.1 for shipments below certain value thresholds.

An Indian government body promoting export of handicrafts — carpets, embroideries, furniture, art metalware, leather goods, jewellery. EPCH registration gives Indian handicraft exporters access to buyer databases, trade fair participation, and export promotion schemes. Relevant to Vertical 07 (Sustainable & Handicrafts) — EU premium retail buyers frequently require EPCH certification as part of sourcing standards.

Indian law governing cross-border capital flows, foreign currency receipts, and payments. Key FEMA provisions for Indian exporters: obligation to realise export proceeds within prescribed time (currently 9 months for goods, 15 months for services); repatriation of commission earned in foreign currency; documentation requirements for inward remittances (FIRC). Violations of FEMA attract penalties from the Enforcement Directorate.

Issued by an Indian bank when foreign currency is received via SWIFT. Required for: GST refund on export services, proof of export proceeds realisation under FEMA, commission receipt documentation for intermediaries, and RBI reporting. Must be obtained within 9 months of the shipment/invoice date. FIRC contains: remitter name, remitting bank, SWIFT reference, INR equivalent, date of credit.

The most widely used Incoterm in Indian export trade. The seller delivers goods to the named port of shipment and clears export customs — risk transfers when goods pass the ship's rail. Freight and insurance from the Indian port onward are the buyer's responsibility. FOB value is typically the basis for: commission calculation, export incentive claims, and FTA origin value content calculations.

A treaty between two or more countries eliminating or reducing tariffs and other trade barriers. Key FTA components: Schedule of Tariff Concessions (which duties are eliminated and on what timeline), Rules of Origin (which goods qualify for preferential rates), Trade Facilitation provisions (customs procedures, AEO), Services chapters (GATS Modes 1–4), Investment protection, IP (including GIs), and Government Procurement. The India–EU FTA (concluded 2026) is the most commercially significant FTA for Indian exporters to any single destination.

India's food regulatory authority. FSSAI registration/licence is mandatory for all food business operators in India, including exporters. EU importers of Indian food products typically require the FSSAI licence number on product labels and supporting documents. FSSAI has signed MRAs with several food safety authorities globally — facilitating mutual recognition of testing and certification.

EU Regulation 2016/679 governing the collection, processing, and transfer of personal data. Applies to any Indian company that: processes data of EU residents, offers goods/services to EU residents, or monitors the behaviour of EU residents. Key GDPR requirements for Indian IT service providers: Data Processing Agreements (DPAs) with EU clients, lawful basis for processing, data subject rights implementation, and cross-border transfer mechanisms (Standard Contractual Clauses or adequacy decision). India does not yet have an EU adequacy decision under GDPR.

A sign identifying a product as originating from a specific geographical area with qualities, reputation, or characteristics attributable to that origin. The India–EU FTA's GI chapter grants EU legal protection to 500+ Indian GIs — including Basmati rice, Darjeeling tea, Alphonso mango, Kolhapuri chilli, Kancheepuram silk, and Channapatna toys. EU-protected Indian GIs will have the same legal standing as Champagne, Parmigiano Reggiano, and Cognac — enforceable against imitation and misuse.

A set of regulations, codes of practice, and guidelines for the manufacture of pharmaceuticals, food, medical devices, and cosmetics. WHO-GMP: issued by Indian drug authorities for pharmaceutical manufacturers — the baseline for most global pharmaceutical exports. EUGMP: the EU-equivalent standard enforced by EMA and national competent authorities. Indian pharma manufacturers exporting to EU must hold both WHO-GMP and EU GMP certification (or operate under MRA provisions).

The world's leading processing standard for textiles made from organic natural fibres. Covers all stages of organic textile production from harvesting of raw materials to responsible manufacturing. EU sustainable fashion buyers, particularly German and Scandinavian brands, increasingly mandate GOTS certification for India-origin textiles. GOTS certification involves annual third-party audits of the entire supply chain.

A 6-digit (internationally standardised) or 8-digit (country-specific) numeric code classifying every tradeable product. The HS code determines: EU import duty rate, FTA staging schedule and preferential rate, applicable non-tariff measures (CE, REACH, MRL, EUDR), and statistical reporting obligations. Misclassification is the single most common cause of: duty overpayment, FTA preference denial, customs delays, and post-audit penalty. Every India–EU deal should begin with HS code verification by qualified customs professionals on both sides.

The world's largest business organisation, developing internationally recognised commercial rules. Key ICC frameworks for India–EU trade: Incoterms® 2020 (delivery terms standard), UCP 600 (rules governing Letters of Credit), URDG 758 (rules governing demand guarantees). ICC also administers one of the world's most established international arbitration institutions — ICC International Court of Arbitration — recommended governing body for India–EU commercial contract disputes.

A 10-digit identification number mandatory for all businesses involved in importing or exporting from India. Issued by DGFT. Required for: customs clearance, obtaining REX registration, claiming export incentives, opening foreign currency accounts, and FIRC issuance. IEC is permanent — no renewal required — but must be updated with current business details annually. Non-resident Indians (NRIs) and foreign companies can also obtain IEC for India trade operations.

A stronger form of non-circumvention protection used in complex multi-party transactions (particularly commodity trading and business brokerage). Unlike a standard NCNDA, an IMFPA: specifies the exact commission amount (not just a percentage), names all fee recipients, is governed by international banking law (UCP 600), and is transmittable via SWIFT. Used by Global Nexus in high-value mandates where multiple intermediaries are involved.

Standardised trade terms published by the ICC defining: who arranges freight, who bears freight cost, who carries insurance, and at what point risk transfers from seller to buyer. Incoterms 2020 has 11 terms: any mode (EXW, FCA, CPT, CIP, DAP, DPP, DDP) and sea/inland waterway only (FAS, FOB, CFR, CIF). Correct Incoterm selection is critical for: insurance coverage, customs valuation, LC document requirements, and commercial contract enforceability.

A commitment by a bank (issuing bank) to pay a seller a specified amount upon presentation of stipulated documents within a specified time. Types: Irrevocable LC (cannot be cancelled without all parties' consent — standard), Confirmed LC (confirmed by a bank in the seller's country, providing additional payment security), Revolving LC (replenishes automatically — used for regular shipments), Red Clause LC (allows advance payment before shipment), Standby LC (used as guarantee rather than payment mechanism). Governed by ICC UCP 600.

An international arbitration institution offering commercial arbitration, mediation, and adjudication. Commonly specified in India–UK commercial contracts as the dispute resolution venue. For India–EU contracts, ICC (Paris) or LCIA (London) are both widely acceptable — post-Brexit London remains a respected arbitral seat, though Lisbon, Singapore, and Geneva are increasingly used for India–EU bilateral agreements.

A non-binding document recording the parties' intention to enter into a formal commercial relationship. MOUs are signed before full due diligence is completed and before a binding contract is executed. Key MOU provisions: scope of cooperation, exclusivity (if any), confidentiality, and governing law for any disputes arising from the MOU itself. An MOU does not create enforceable commercial obligations — it establishes a framework for negotiating a binding agreement.

EU-mandated maximum concentrations of pesticide residues permitted in food and agricultural products. EU MRLs are set by EFSA (European Food Safety Authority) under Regulation (EC) No. 396/2005. EU MRLs are typically significantly stricter than Indian domestic MRLs — the default EU MRL for unauthorised pesticides is 0.01 mg/kg (essentially zero). Indian agro exporters must test all export consignments against EU MRL limits before shipment — failure to comply leads to RASFF (Rapid Alert System for Food and Feed) notification, shipment rejection, and potential wholesale import ban.

An Indian accreditation body for hospitals and healthcare organisations. NABH accreditation is the Indian equivalent of JCI (Joint Commission International) — the primary quality credential for Indian hospitals seeking to attract international medical tourism patients. EU health insurers and medical tourism facilitators increasingly require NABH accreditation as a minimum for hospital empanelment.

The foundational legal document protecting commercial intermediaries. Non-Circumvention: parties agree not to bypass the intermediary and deal directly with introduced counterparties. Non-Disclosure: all commercially sensitive information (prices, client identities, product specs) is confidential. Non-Competition: parties agree not to compete in the same vertical/territory during the agreement term. Global Nexus requires NCNDA execution before any principal identity is disclosed.

A negotiable Bill of Lading issued for sea freight shipments. The OBL is a document of title — whoever holds the original endorsed OBL has the right to claim the goods at the destination port. For LC transactions, the original OBL set (typically 3 originals) is presented to the bank along with other LC-stipulated documents. One original is sent to the consignee; the others are retained by the bank and shipper. Telex Release (surrender at origin, release at destination without physical OBL) is increasingly used to avoid physical courier delays.

Physical verification of goods before loading at origin port, conducted by an independent inspection company (SGS, Bureau Veritas, Intertek, QIMA). A PSI report confirms: quantity matches purchase order and packing list, quality meets specification, packaging is adequate for ocean transit, and documentation is correct. Typically costs 0.2–0.5% of FOB value (minimum INR 15,000–25,000). Strongly recommended for all first orders and high-value shipments. Global Nexus coordinates PSI as part of trade facilitation mandates.

A preliminary invoice issued by the seller to the buyer before shipment, typically used for: LC application (the buyer presents the PI to their bank to arrange LC), price confirmation and commercial negotiation, import licence applications, and advance payment requests. A proforma invoice is not a final commercial document — the confirmed commercial invoice is issued after shipment. Proforma invoices must include: HS code, unit price, total value, Incoterms, payment terms, and origin country.

EU Regulation (EC) No. 1907/2006 governing chemicals manufactured in or imported into the EU. REACH registration is required for substances imported into the EU at >1 tonne/year. Indian chemical exporters must: register substances (or access an existing registration via Letters of Access), provide MSDS (Safety Data Sheets) in the language of destination EU member state, and comply with Substances of Very High Concern (SVHC) restrictions. REACH compliance is the primary non-tariff barrier for Indian specialty chemical exporters.

A self-certification system for preferential origin claims under EU trade agreements. REX-registered Indian exporters can self-certify origin directly on commercial invoices, replacing the traditional Certificate of Origin (Form A or EUR.1) from a Chamber of Commerce. REX registration is with DGFT India — takes 4–6 weeks. The India–EU FTA will use REX as the primary origin certification mechanism. REX statements must include the exporter's REX number and the prescribed declaration text.

Criteria that determine whether a product is considered "originating" in a particular country for the purpose of claiming preferential tariff treatment under an FTA. ROO tests vary by product (HS chapter) and agreement. Primary tests: Wholly Obtained (entirely produced in the country), Change of Tariff Classification (CTC — final product must be in different HS heading than imported inputs), Regional Value Content (RVC — percentage of value-added in the claiming country), and Specific Manufacturing Process (specific operations required). Correct ROO compliance is essential — incorrect preference claims lead to post-audit duty recovery, penalties, and customs blacklisting.

The standard EU customs declaration form used for goods import, export, and transit within the EU. Also known as the H1 form for imports. The SAD contains: goods description and HS code, customs value, origin, Incoterms, importer and exporter EORI numbers, and the applicable customs procedure. For FTA preference claims, the SAD references the origin declaration or certificate. Filed electronically through EU member states' customs IT systems (AES/AIS in most EU countries).

A secondary payment mechanism — a bank's commitment to pay a beneficiary if the applicant fails to fulfil an obligation. Unlike a commercial LC (primary payment mechanism), an SBLC is drawn only if the underlying contractual obligation is not met. Commonly used in commodity trade and long-term supply agreements as a performance guarantee. Governed by ICC ISP98 (International Standby Practices) or UCP 600. Issued via SWIFT MT760.

One of the world's leading inspection, verification, testing, and certification companies. SGS provides pre-shipment inspection (PSI), quality verification, laboratory testing (including EU MRL testing for agro products), and certification services for India–EU trade. Alternative to SGS: Bureau Veritas, Intertek, QIMA, TÜV. Global Nexus coordinates PSI through SGS and Bureau Veritas as standard for first-order mandates.

An electronic funds transfer used for international payments — colloquially referred to as a "bank wire" or "SWIFT payment." The most common payment method for established India–EU trading relationships. TT advance (partial or full pre-payment before shipment) is used when the buyer has a track record with the seller. TT after BL copy (30–50% advance, balance against scan of B/L) is a common compromise for first orders where the buyer will not agree to full advance. Governed by SWIFT messaging standards (MT103 for customer payments).

ICC rules governing Letters of Credit, in force since 2007. UCP 600 contains 39 articles defining: definitions (complying presentation, negotiation, honour), bank roles (issuing, confirming, nominated, advising), document requirements, timing, and dispute resolution. All commercial LCs should state "Subject to UCP 600" — without this, interpretation of LC terms and dispute resolution become significantly more complex.

ICC rules governing demand guarantees and standby letters of credit. Governs: advance payment guarantees, performance bonds, bid bonds, and payment guarantees used in India–EU trade and project contracts. URDG 758 provides certainty of terms internationally — recommended for any guarantee instrument issued in connection with an India–EU commercial contract.

A bank account held by a domestic bank on behalf of a foreign bank — the mirror image of a "nostro" account. Relevance: India's INR internationalisation initiative enables EU banks to hold INR Vostro accounts with Indian banks, enabling EUR-INR bilateral trade settlement without routing through USD correspondent banks. This reduces FX conversion costs and speeds settlement for India–EU trade conducted in INR.

An indirect consumption tax applied at each stage of the supply chain, with the final burden borne by the end consumer. EU VAT applies to imports of goods into the EU — Indian exporters selling DDP must account for EU VAT at the applicable rate (5–27% depending on member state and product category). For B2B sales (EU buyer has VAT registration), the buyer typically accounts for VAT via the reverse charge mechanism. For B2C DDP sales (Amazon FBA), the Indian seller must register for EU VAT in each country of sale.

An internationally recognised standard for pharmaceutical manufacturing issued by WHO. WHO-GMP certification (issued by CDSCO India following inspection) is the primary quality credential for Indian pharmaceutical manufacturers seeking to export to regulated markets (EU, USA, Canada, Australia, Japan). EU pharma importers require either WHO-GMP or EUGMP certification — many Indian manufacturers hold both. WHO-GMP inspection cycles: typically every 2–3 years.

The international body governing global trade rules. WTO membership obligates countries to: apply Most Favoured Nation (MFN) tariffs to all WTO members equally, notify all trade measures and FTAs, and resolve trade disputes through the WTO Dispute Settlement Body. The India–EU FTA is notified to the WTO under GATT Article XXIV (covering goods) and GATS Article V (covering services) as exceptions to MFN obligations.

The global equivalent of NABH — an international healthcare accreditation body that certifies hospitals meeting rigorous quality and patient safety standards. JCI accreditation is the gold standard credential for Indian hospitals seeking to attract international medical tourism patients from Europe, the Americas, and the Middle East. Accredited Indian hospitals: Apollo, Fortis, Manipal, Max, Narayana Health. EU health insurers and medical tourism facilitators require JCI accreditation as a minimum qualification for empanelment.

Japan's government body promoting bilateral trade and investment. JETRO maintains offices in India and provides market intelligence, buyer databases, and matchmaking services for Indian exporters targeting Japan. Relevant for exporters of engineering goods, textiles, chemicals, and pharmaceuticals. JETRO-facilitated introductions carry credibility with Japanese corporate buyers who value institutional intermediation.

A mandatory due diligence process for verifying the identity, legitimacy, and financial background of a counterparty before entering a commercial relationship. In trade intermediation, KYC applies to: the Indian manufacturer (verifying IEC, GST, business registration, export references), the EU buyer (verifying EORI, company registration, financial standing), and in regulated sectors (pharma, chemicals), regulatory licences. KYC documentation protects the intermediary from unknowingly facilitating transactions with sanctioned entities or fraudulent counterparties.

An international certification scheme preventing the trade in conflict diamonds. Required for all rough diamond exports from India and imports into the EU. The Kimberley Process Certificate accompanies every rough diamond shipment, certifying that the diamonds are conflict-free. India's Gems & Jewellery Export Promotion Council (GJEPC) administers KP compliance for Indian exporters. Belgium (Antwerp) and Israel are the primary EU import hubs for rough diamonds.

An Indian government regulatory order mandating that specified products meet BIS (Bureau of Indian Standards) standards before they can be imported into India. India has issued QCOs for 700+ product categories including steel, chemicals, electronics, construction materials, medical devices, and textiles. QCOs function as non-tariff barriers — even products with zero import duty may be blocked if they do not hold BIS certification. EU exporters targeting India must assess QCO applicability before market entry planning. The QCO list is expanding rapidly under the Make in India policy framework.

An EU-mandated individual responsible for certifying that each batch of a medicinal product has been manufactured in compliance with EU GMP and the terms of the marketing authorisation. Every EU-placed medicinal product must be certified by a QP who holds the required qualifications under the EU Medicinal Products Directive. For Indian pharmaceutical exports to the EU, the QP is typically employed by the EU marketing authorisation holder or an EU-based batch release laboratory. QP services cost approximately €60,000–150,000 per year — a significant regulatory overhead for Indian pharma companies entering the EU market.

A global quality control and compliance solutions provider offering pre-shipment inspection, factory audits, and laboratory testing for supply chains. QIMA operates extensively in India and is frequently engaged by EU buyers to verify Indian supplier quality before shipment. Alongside SGS, Bureau Veritas, and Intertek, QIMA is one of the four primary inspection agencies used in India–EU trade facilitation mandates. Cost: typically 0.2–0.5% of shipment FOB value.

An Incoterm where the seller makes goods available at their premises (factory, warehouse) — the buyer bears all costs and risks from that point. EXW places maximum responsibility on the buyer: they arrange inland transport, export customs clearance, freight, insurance, and import clearance. Rarely used for India–EU exports because Indian export customs (Shipping Bill) must be filed in the seller's name, creating legal complications when using EXW. FCA (Free Carrier) is the recommended alternative for most India–EU export scenarios.

Rules of Origin requirements in textile FTAs specifying the point at which production must begin in the exporting country to qualify for preferential tariff treatment. Yarn Forward: the yarn used to make the fabric must originate in the exporting country — the most stringent standard. Fabric Forward: the fabric (woven or knit) used to make the garment must originate in the exporting country — intermediate standard. Fibre Forward: the fibre used to spin the yarn must originate — the most stringent. The India–EU FTA is expected to use Fabric Forward for most garment categories (HS 61–62). Critical for Indian garment exporters using imported Chinese or Bangladeshi fabric — they may not qualify under Fabric Forward ROO even if cutting and sewing is done in India.

A product classification line in an FTA schedule where the import duty is reduced to zero — either immediately upon FTA entry into force, or at the end of the staging period. The India–EU FTA eliminates duty on 85–90% of bilateral tariff lines. "Immediate zero" lines (approximately 30% of the schedule) enjoy zero duty from Day One of FTA implementation. "Staged zero" lines phase to zero over 3, 5, 7, or 10 years. Indian exporters should identify whether their specific HS code is in the immediate zero or staged category — the commercial strategy differs significantly.

Under India's GST framework, exports of goods and services are zero-rated — meaning GST is levied at 0% on the export supply, and the exporter can claim refund of input tax credits accumulated on purchases. Two mechanisms: (a) Export under LUT (Letter of Undertaking) — export without paying IGST, then claim ITC refund; (b) Export on payment of IGST — IGST paid on export, then claimed as refund from GST department. Most exporters use the LUT route. FIRC (Foreign Inward Remittance Certificate) from the receiving bank is required to process GST refund claims on export services.