In a move, which could impact Indian textiles exporters, European Union is considering modelling its 'Rules of Origin' for imports on the lines of that present in the United States.
Speaking at India Textiles Summit in New Delhi, joint secretary K K Jalan said the new rules, which are being patterned on the US model will make it compulsory for the exporter to mention the place where the product was manufactured.
He said with the new rules a manufacturer in EU can source fabric from outside and put the made-in-EU label even with a minor value addition.
Pointing at the dynamic situation in the sector, he said the industry will have to gear itself to meet the new challenges, which are emerging with the change in polices of the importing countries.
Faced with the anti-subsidy case in EU, the government may consider re-shaping the Duty Entitlement Passbook Scheme so that India does not have to face such investigations.
He said though the scheme was only aimed at refunding the duty, which was paid by exporters, the scheme was being treated as subsidy by various countries.
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