FTA TARIFF BENEFIT CALCULATOR
Worksheet for India-EU Trade
This worksheet enables Indian exporters and EU buyers to calculate the financial benefit of preferential tariff rates under the India-EU FTA (or current EU GSP), compare the duty saving against compliance costs, and determine the net commercial gain per shipment and per annum. Complete one worksheet per product / HS code.
PART A — PRODUCT AND TRANSACTION DETAILS
PART B — CURRENT DUTY POSITION (WITHOUT FTA)
PART C — FTA TARIFF BENEFIT CALCULATION
PART D — ORIGIN COMPLIANCE COSTS
To claim FTA preferential rates, the goods must qualify under the applicable Rules of Origin. There are costs associated with establishing and maintaining origin compliance. Estimate these below:
PART E — NET BENEFIT CALCULATION
PART F — COMPETITIVE IMPACT ANALYSIS
The duty saving may be passed to the buyer (as a price reduction) or retained by the exporter (as margin improvement). Assess the competitive impact:
PART G — SECTOR-SPECIFIC NOTES AND KNOWN SENSITIVITIES
Record any sector-specific considerations that may affect the FTA tariff benefit for this product:
PART H — REFERENCE TOOLS
- Use the following official tools to complete this worksheet accurately:
- EU Access2Markets: trade.ec.europa.eu/access-to-markets — tariff rates, rules of origin, and import requirements for all EU member states and all products.
- EU TARIC: ec.europa.eu/taxation_customs/dds2/taric — detailed EU tariff database including anti-dumping and other measures.
- ECGC Country Risk Classification: ecgc.in — for buyer country risk assessment.
- ECHA Candidate List (REACH): echa.europa.eu — for SVHC check on product.
- EU Pesticides Database: ec.europa.eu/food/plant/pesticides — for MRL check on agricultural products.
- India DGFT Tariff Schedule: dgft.gov.in — for India's concession schedule under the FTA (once concluded).
- WITS (World Integrated Trade Solution): wits.worldbank.org — for bilateral trade flow data and competitor duty rates.
PART I — SUMMARY AND RECOMMENDATION
Doc 48 — FTA Tariff Benefit Calculator Worksheet — Neutral Template
| Product Description | |
|---|---|
| HS Code (8-digit EU CN) | |
| Country of Origin | India |
| Country of Destination (EU) | |
| Annual Export Volume (units / kg / other) | |
| Unit of Measure | |
| Invoice Currency | |
| Average Unit CIF Value (to EU port) | |
| Annual CIF Value of Exports (A) |
| EU MFN Duty Rate for HS Code | _____% |
|---|---|
| Duty Basis | Ad valorem (% of CIF value) / Specific (per unit) / Mixed — delete as applicable |
| Annual MFN Duty Payable (B) | (A) × MFN rate = ___________________ |
| Current GSP Rate (if applicable) | _____% (check eu.access2markets for current GSP rate for this HS code) |
| Annual Duty Under GSP (C) | (A) × GSP rate = ___________________ |
| Current Annual Duty Saving from GSP (D = B − C) | |
| Is this HS code graduated from GSP for India? | Yes / No (if Yes, no GSP benefit — use MFN as baseline) |
| Expected FTA Preferential Rate (Year 1) | _____% (from FTA tariff schedule — check official text) |
|---|---|
| Expected FTA Preferential Rate (Year 5) | _____% |
| Expected FTA Preferential Rate (Year 10 / Full Phase-Down) | _____% |
| Annual Duty Under FTA (Year 1) (E) | (A) × FTA Year 1 rate = ___________________ |
| Annual Duty Under FTA (Year 10) (F) | (A) × FTA Year 10 rate = ___________________ |
| Annual Duty Saving vs. MFN (Year 1) (G = B − E) | |
| Annual Duty Saving vs. MFN (Year 10) (H = B − F) | |
| Annual Duty Saving vs. GSP (Year 1) (I = C − E) | (additional saving over current GSP position) |
| Annual Duty Saving vs. GSP (Year 10) (J = C − F) |
| Does the product qualify under likely FTA Rules of Origin? | Yes / No / Uncertain — see origin analysis below |
|---|---|
| Origin Analysis — Method Applied | Wholly Obtained / Change of Tariff Classification / Value Added Test / Specific Process |
| Current Value Added in India (% of ex-works price) | _____% |
| Required Value Added under FTA (if RVC rule applies) | _____% |
| Origin gap (shortfall, if any) | _____% — sourcing changes required: ___________________ |
| Cost of REX registration (one-time) | Minimal — typically < INR 5,000 |
| Cost of origin record-keeping and documentation (annual estimate) | |
| Cost of legal / customs adviser review of origin determination (one-time) | |
| Cost of sourcing changes required to achieve origin compliance (if any) | |
| Total Annual Compliance Cost (K) |
| Net Annual Benefit vs. MFN (Year 1) = G − K | |
|---|---|
| Net Annual Benefit vs. MFN (Year 10) = H − K | |
| Net Annual Benefit vs. GSP (Year 1) = I − K | |
| Net Annual Benefit vs. GSP (Year 10) = J − K | |
| Benefit as % of Annual Invoice Value (Year 10) | (H − K) / A × 100 = _____% |
| Is the FTA preferential rate commercially worthwhile to claim? | Yes / No / Marginal |
| Current landed cost to EU buyer (CIF + MFN duty) | |
|---|---|
| Landed cost under FTA (Year 10) | |
| Reduction in landed cost | _____% |
| Nearest competing origin country | |
| Competing country's current duty rate in EU | _____% (MFN / FTA with EU / GSP) |
| India's competitive position vs. competitor after FTA | Better / Equal / Worse — by _____% |
| Recommended commercial strategy | Pass saving to buyer (volume growth) / Retain as margin / Split |
| Is this product in a sensitive sector (textiles, agri, auto)? | Yes / No — if yes, longer phase-down expected |
|---|---|
| Anti-dumping duty currently applicable? | Yes / No ADD rate: _____% (Note: ADD is separate from MFN duty and is not affected by FTA preferences) |
| Tariff Rate Quota (TRQ) applicable? | Yes / No Quota volume: ___________________ |
| SPS or regulatory measures affecting market access? | Yes / No Details: ___________________ |
| CBAM applicability (for steel, aluminium, cement, etc.)? | Yes / No Estimated CBAM cost: ___________________ |
| Other notes |
| Product / HS Code: _____________________________________________ |
|---|
| Annual CIF Value: _____________ MFN Duty Saving (Year 10): _____________ Net Benefit after Compliance Cost: _____________ |
| Origin qualification: Confirmed / Requires sourcing change / Cannot qualify |
| Recommendation: Claim FTA preference / Continue on GSP / MFN (preference not worthwhile) / Further analysis needed |
| Next Action: _____________________________________________ |
| Date of Analysis: _____________ Completed by: _____________________________________________ |