# India EFTA TEPA 2026: What Swiss and Norwegian Investors Should Know

> Source: https://krystal7.com/insights/india-efta-tepa-swiss-norwegian-companies
> Publisher: Krystal7 Consultants (Krystal7 Innovations Private Limited), Gurugram, India
> Author: CA Nandini
> Published: 25 Feb 2026; updated 24 Oct 2026
> Summary: India EFTA TEPA has applied since 1 Oct 2025. See the tariff cuts, EUR.1 and origin declaration rules, the USD 100 billion goal and the Swiss DTAA.

*Written by CA Nandini Hasija, Krystal7 Consultants. Last updated 23 October 2026.*

## AI Overview Summary

- The India EFTA TEPA has applied since 1 Oct 2025 between India and Switzerland, Norway, Iceland and Liechtenstein. It was signed in New Delhi on 10 Mar 2024.
- India cuts duty on 82.7 percent of tariff lines covering 95.3 percent of EFTA exports. Many cuts phase in over 5, 7 or 10 years, and duty on gold is unchanged.
- An Indian importer claims TEPA duty with an approved exporter's origin declaration or an EUR.1 certificate, valid for 12 months, under Notification 59/2025-Customs (N.T.) and CAROTAR 2020.
- Article 7.1 sets an objective of USD 100 billion of EFTA FDI into India over 15 years and one million direct jobs. It does not bind any single company.
- TEPA does not change withholding tax. Dividends to a Swiss parent follow the Income Tax Act, 2025 and the India Switzerland DTAA, and India applies no MFN rate after the Nestle ruling.

**The India EFTA Trade and Economic Partnership Agreement (TEPA) has applied since 1 Oct 2025 between India and Switzerland, Norway, Iceland and Liechtenstein. India cuts duty on 82.7 percent of tariff lines covering 95.3 percent of EFTA exports. Make in India and PLI lines phase in over 5, 7 or 10 years. Article 7.1 sets an FDI objective of USD 100 billion over 15 years. Importers prove origin under Notification 59/2025-Customs (N.T.). Tax treaties are unchanged.**

This page is for Swiss, Norwegian, Icelandic and Liechtenstein groups that own or plan an Indian subsidiary. It covers the tariff offer, the origin rules, the investment chapter and services. It also covers how TEPA sits with the India Switzerland tax treaty after the MFN suspension.

## What is the India EFTA TEPA and when did it enter into force?

TEPA is a free trade agreement between India and the four EFTA states. It was signed in New Delhi on 10 Mar 2024 and entered into force on 1 Oct 2025. It has 14 chapters, including goods, rules of origin, services, investment promotion, intellectual property and sustainable development. It is India's first FTA with an investment and jobs objective.

The Ministry of Commerce announced the start date on 30 Sep 2025 in [PIB release 2173138](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2173138&reg=48&lang=2). EFTA and India issued a [joint communiqué on 1 Oct 2025](https://www.efta.int/media-resources/news/efta-india-trade-and-economic-partnership-agreement-enters-force-joint). The legal texts, annexes and schedules are on the [Ministry of Commerce TEPA page](https://commerce.gov.in/international-trade/trade-agreements/india-efta-tepa).

The first chapters cover general provisions, trade in goods, trade remedies, SPS measures, TBT and trade in services. Then come investment promotion, intellectual property, government procurement and competition. The last four cover sustainable development, dispute settlement, institutions and final provisions. Rules of origin and trade facilitation sit as annexes to the goods chapter.

EFTA is not a customs union, so each party has its own schedule of concessions. India's schedule is Annex 2.C, with a separate offer to Iceland, Norway and Switzerland in Appendices 2.C.1 to 2.C.3. The schedules of Iceland, Norway and Switzerland are Annexes 2.D, 2.E and 2.F. Switzerland and Liechtenstein share a customs territory, so they give joint concessions (EFTA chapter factsheet).

The combined GDP of India and the EFTA states is around USD 5.4 trillion (EFTA news, 8 Oct 2026).

## Which EFTA goods get lower Indian duty?

India offers concessions on 82.7 percent of its tariff lines, covering 95.3 percent of EFTA exports to India. More than 80 percent of imports from EFTA are gold, and the effective duty on gold is unchanged. For Make in India and PLI products, cuts phase in over 5, 7 or 10 years (PIB release 2173138).

The headline number is smaller than it looks. Take gold out and the share of non gold EFTA exports that gain a cut is not published in the official releases.

| India's TEPA offer | Figure | Source |
|---|---|---|
| Tariff lines with concessions | 82.7% | PIB 2173138, 30 Sep 2025 |
| Share of EFTA exports covered | 95.3% | PIB 2173138 |
| Gold in imports from EFTA | Over 80%, duty unchanged | PIB 2173138 |
| Staging for Make in India and PLI products | 5, 7 or 10 years | PIB 2173138 |
| Sensitive sectors kept out | Pharma, medical devices, processed food, dairy, soya, coal, some farm goods | PIB 2173138 |
| Products EFTA lists as gaining | Pharmaceuticals, machinery, watches, fertilisers, medicines, chemicals, minerals, fish | EFTA chapter factsheet |

The two official sources read differently on pharmaceuticals. PIB lists pharma and medical devices as protected. The EFTA factsheet lists pharmaceuticals among products whose Indian duty falls. Both can be true at line level, with some lines cut and others excluded. Check the eight digit line in India's schedule in Annex 2.C before you price a product.

Exporters of Swiss watches, chocolate and wine will want the year by year rates. The EFTA factsheet lists watches among the products whose Indian duty is removed, but gives no staging. Neither PIB nor EFTA publishes the rates for chocolate or wine. The rates sit in India's offer to Switzerland, Appendix 2.C.3, and its Attachment 1 for wine (HS 2204). Both are on the [Ministry of Commerce TEPA page](https://commerce.gov.in/international-trade/trade-agreements/india-efta-tepa). Read your line there before you price.

## What does EFTA offer on goods made in India?

EFTA states give concessions on 92.2 percent of their tariff lines, covering 99.6 percent of India's exports. That includes 100 percent of non agricultural products and concessions on processed farm goods (PIB release 2173138). Most Indian industrial goods already entered EFTA at zero duty.

The gains are on processed food, coffee, marine products and some farm lines. EFTA gives 0 percent duty on all coffee lines. TEPA locks in EFTA's existing 0 percent rate on leather and footwear. Gems and jewellery keep duty free access (PIB release 2173138).

If your Indian subsidiary exports to the Swiss or Norwegian parent, the duty saving at the EFTA border is modest for industrial goods. The bigger value is legal certainty. TEPA binds the zero rates, so an EFTA state cannot raise them without breaching the agreement.

The certificate of origin for Indian exports is the Indian one in Appendix 2.A.3. Indian authorised agencies issue it, or the exporter self declares it (Article 1 of the appendix).

## What is the USD 100 billion investment commitment?

Article 7.1 sets an objective for the EFTA states to raise FDI into India by USD 50 billion within 10 years of entry into force. A further USD 50 billion follows in the next 5 years. The aim is one million direct jobs in India. Portfolio investment does not count (PIB release 2173138).

The chapter relies on review rather than penalties. A sub committee reviews progress at regular intervals (EFTA chapter factsheet). If the target is not met after 15 years, India may start a three stage consultation. If India is still not satisfied, it may suspend concessions after a further grace period of three years. Any suspension must be proportionate and temporary.

| Stage | Period from 1 Oct 2025 | Milestone |
|---|---|---|
| First objective | 10 years, to 30 Sep 2035 | USD 50 billion of additional EFTA FDI |
| Second objective | Next 5 years, to 30 Sep 2040 | Another USD 50 billion, USD 100 billion in total |
| Review | Throughout | Sub committee reviews progress |
| Consultations | After 15 years, if the target is missed | Three stage consultation requested by India |
| Possible rebalancing | After a further 3 year grace period | India may suspend concessions, proportionately and temporarily |

The dates in the table are our arithmetic from the 1 Oct 2025 start. They are not printed in the agreement.

The Government launched an India EFTA Desk on 10 Feb 2025 as a single window for EFTA investors ([PIB release 2101431](https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2101431); PIB backgrounder, 11 Oct 2025). It focuses on renewable energy, life sciences, engineering and digital transformation, and supports joint ventures and SME partnerships.

## Does the investment commitment bind individual Swiss or Norwegian companies?

No. Article 7.1 is an objective of the EFTA states, measured in aggregate FDI flows. It places no investment duty on any company. The only consequence of a shortfall is India's right, after 15 years, consultations and a three year grace period, to suspend some trade concessions.

The EFTA governments promote investment through their own agencies. They do not direct private capital. The EFTA factsheet describes the chapter as built on historical trends, economic forecasts and expected spillovers from the agreement.

For a Swiss parent, the practical point is different. TEPA does not change how an investment enters India. The FEMA (Non Debt Instruments) Rules, 2019, sector caps and reporting rules apply as before. PIB reported Minister Piyush Goyal's assurance that 100 percent FDI is allowed in almost all sectors of interest (PIB release 2173968, 1 Oct 2025).

FDI counted towards the target is ordinary FDI. A share subscription by a Swiss parent in its Indian subsidiary is reported in Form FC-GPR within 30 days of allotment, like any other. Our [Switzerland to India company guide](/insights/register-a-company-in-india-from-switzerland) covers set up.

## How do the rules of origin work under TEPA?

Goods qualify if they are wholly obtained in a party or meet the product specific rule in Annexure A. Indian customs applies these rules through Notification 59/2025-Customs (N.T.) of 29 Sep 2025, in force from 1 Oct 2025. Proof is an approved exporter's origin declaration, an EUR.1 certificate, or an Indian certificate of origin, each valid for 12 months.

The notification sets out the Customs Tariff (Determination of Origin of Goods under the Trade and Economic Partnership Agreement between India and the EFTA States) Rules, 2025. CBIC made them under section 5(1) of the Customs Tariff Act, 1975. The notification is published in the Gazette of India and listed on [CBIC's tax information portal](https://taxinformation.cbic.gov.in/).

| Point | TEPA rule as notified in India | Rule in Notification 59/2025 |
|---|---|---|
| Value cap | Caps on non originating materials vary by product, for example 60% of the ex works price, often as an alternative to a tariff shift | Annexure A |
| Sector caps | 65% for pharmaceuticals (Chapter 30); 70% for some Chapter 32 goods; 80% for polished stones (71.03) | Annexure A |
| FOB basis | Cap is 5 percentage points lower than the ex works cap | Annexure A |
| Tolerance | Non originating materials up to 10% of FOB or ex works value | 5(2) |
| Cumulation | Inputs originating in any party count as originating | 7 |
| Direct consignment | Transit allowed only with no processing and under customs control | 13 |
| Proof of origin | Approved exporter declaration, EUR.1, or Indian certificate of origin | 14 |
| Validity | 12 months from completion or issue; late proof only in exceptional cases | 14(3), 15(4) |
| Records | Exporter and importer keep 5 years | 16 |
| Verification | Request within 5 years; acknowledgement within 45 days; reply generally within 10 months | 18 |

The Swiss customs circular confirms the EFTA side. Swiss exporters use an origin declaration or an EUR.1. Only approved exporters may make out an origin declaration. It must be in English, in the set wording, and electronically signed ([BAZG Circular R-30, 11 Aug 2025](https://www.bazg.admin.ch/dam/fr/sd-web/owg43YRAdZWp/circulaire-aele-inde-fr.pdf)).

Box 8 of the EUR.1 must show the six digit HS code and the origin criterion, "WO" or "PSR". For an origin declaration, Swiss customs recommends adding the six digit HS code on the commercial document to ease import into India.

The circular also says TEPA does not prohibit duty drawback. Swiss exporters may claim drawback on imported inputs and still certify origin. The Indian rules govern only the import side.

## How does an Indian subsidiary claim TEPA duty on imports from its EFTA parent?

The subsidiary claims at import in the bill of entry. It declares that the goods originate in an EFTA state, quotes the TEPA tariff notification serial, and enters the proof of origin details. Section 28DA of the Customs Act, 1962 and CAROTAR 2020 apply, as for every Indian FTA.

CAROTAR adds duties on the importer. It must hold the origin information in Form I and keep supporting papers for five years from the bill of entry (rule 4). If customs asks for information, the importer has 10 working days to reply (rule 5). These steps are set out in a [CBIC training deck on CAROTAR](https://bangalorecustoms.gov.in/wp-content/uploads/2024/02/CAROTAR-221023-1.pdf).

Customs may verify with the EFTA authority. Under Notification 59/2025, the exporting party acknowledges a request within 45 days and generally replies within 10 months. It confirms the authenticity of an origin declaration within 45 working days. Goods can be released during verification on payment of duty or against security.

Customs can refuse the preference if the proof is incomplete, altered without authentication or out of date (CAROTAR rule 3(2)). It can extend a refusal to identical goods from the same exporter (rule 7). Our guide to [rules of origin and CAROTAR](/insights/rules-of-origin-fta-carotar-importers) explains each step.

A practical point for groups: a Swiss parent that is not an approved exporter must use an EUR.1 for every shipment. Approved exporter status saves time on regular intercompany flows. Ask the parent's customs team whether it holds that status.

## What does the TEPA services chapter offer?

India commits in 105 services subsectors. Switzerland commits in 128, Norway in 114, Iceland in 110 and Liechtenstein in 107 (PIB release 2173138). TEPA improves access for digital delivery, commercial presence and temporary entry of key staff, and provides for recognition of professional qualifications.

| Party | Services subsectors committed | Notes |
|---|---|---|
| India | 105 | Commitments to all four EFTA states |
| Switzerland | 128 | Highest number among EFTA states |
| Norway | 114 | Includes maritime interest |
| Iceland | 110 | |
| Liechtenstein | 107 | |

The services chapter builds on GATS. It has annexes on financial services, telecom, movement of natural persons, recognition of qualifications and maritime personnel (EFTA chapter factsheet). Mutual recognition is planned for nursing, chartered accountancy and architecture (PIB release 2173138).

For an Indian subsidiary, the services chapter matters when staff travel to the EFTA parent. The movement of natural persons annex gives more certainty on entry and temporary stay. Domestic visa and work permit rules still apply in each EFTA state.

Services exports from the Indian subsidiary to the parent stay zero rated under GST if they meet the export of services test. TEPA does not change that.

## What changes for an EFTA parent with an Indian subsidiary?

Three things change. Imports from the EFTA parent can pay lower basic customs duty if the origin proof is in order. The Indian subsidiary must run an origin file under CAROTAR. Exports to the parent gain bound zero duty and clearer staff mobility.

| Area | Change under TEPA | What to do |
|---|---|---|
| Imports from the parent | Lower basic customs duty on qualifying lines, often staged | Map each HSN code to Annex 2.C and its staging |
| Origin proof | Origin declaration by an approved exporter, or EUR.1 | Confirm the parent's approved exporter status |
| Origin file in India | Form I information and five year records | Keep a bill of materials and cost sheet per product |
| Landed cost | Lower duty changes the subsidiary's margin | Review transfer prices for the year of each cut |
| Exports to the parent | Zero duty bound on industrial goods | Obtain Indian certificates of origin where needed |
| Investment | Article 7.1 objective, no company obligation | Report FDI as usual under FEMA |
| Professional services | Recognition talks for nursing, accountancy, architecture | Watch for any recognition agreement before relying on it |

The transfer pricing effect is easy to miss. If customs duty falls and the transfer price stays the same, the Indian distributor's margin rises. Revisit the benchmark in the year of the cut. Our page on [transfer pricing documentation](/insights/transfer-pricing-documentation-requirements-in-india) covers the file.

A Swiss parent that sends managers to India should still watch permanent establishment risk. TEPA does not change that test. See our note on [permanent establishment risk](/insights/how-to-avoid-permanent-establishment-risk-in-india).

For the setup itself, our country guides cover the process, cost and timeline for a parent in Switzerland, [Norway](/insights/register-a-company-in-india-from-norway), [Iceland](/insights/register-a-company-in-india-from-iceland) and [Liechtenstein](/insights/register-a-company-in-india-from-liechtenstein).

## How does TEPA sit with the India Switzerland DTAA after the MFN suspension?

TEPA is a trade agreement and does not change withholding tax. Dividends, interest and royalties from an Indian subsidiary to a Swiss parent follow the Income Tax Act, 2025 and the India Switzerland DTAA. India applies no lower MFN rate, because the Supreme Court held in Nestle SA that MFN needs a Government notification.

The background runs as follows. The protocol to the India Switzerland DTAA has an MFN clause. Nestle SA, a Swiss company, argued that India's later treaties with Lithuania and Colombia cut its dividend rate. On 19 Oct 2023 the Supreme Court held that the MFN benefit needs a notification under section 90(1) of the Income Tax Act, 1961. That is now section 159 of the Income Tax Act, 2025. It also held that the third country must have been an OECD member when India signed with it.

Switzerland had applied the MFN rate on its side. On 11 Dec 2024 the Swiss Federal Department of Finance said it would stop applying the MFN clause from 1 Jan 2025, citing lack of reciprocity. Swiss tax on dividends due to Indian residents from that date is capped at 10 percent instead of 5 percent ([Swiss notice of 11 Dec 2024](https://www.estv.admin.ch/dam/en/sd-web/bifa29jbp2im/int-laender-indien-suspension-mfn-en.pdf)). The notice says the step does not affect the free trade agreement or Swiss investments in India.

| Treaty partner | Dividend withholding rate an Indian subsidiary applies (%) | MFN position | Notes |
|---|---|---|---|
| Switzerland | 10% under the DTAA | India applies no MFN rate; Switzerland suspended its MFN application from 1 Jan 2025 | Relevant to Swiss parents and to Indian groups with Swiss subsidiaries |
| Norway | 10% under the DTAA | No MFN issue in India's practice | |
| Iceland | 10% under the DTAA | No MFN issue in India's practice | |
| Liechtenstein | Domestic rate under section 207 of the Income Tax Act, 2025 (old section 115A), plus surcharge and cess | Not applicable | No comprehensive DTAA in the Income Tax Department's treaty rate table |

The Income Tax Department's table of [tax rates under DTAAs](https://www.incometaxindia.gov.in/w/%E2%80%8Btax-rates-dtaa-v.-income-tax-act) shows a 10 percent dividend rate for Switzerland, Norway and Iceland. It lists no entry for Liechtenstein. The Swiss notice of 11 Dec 2024 confirms the 10 percent Swiss rate from its side.

So for a Swiss parent with an Indian subsidiary, the MFN suspension changes nothing on the Indian side. India was already applying the treaty rate. The suspension matters to Indian companies that hold Swiss subsidiaries, because Swiss withholding on their dividends rose from 1 Jan 2025.

To claim the treaty rate, the Swiss parent gives a tax residency certificate and Form 41 (old Form 10F). Section 159(8) and rule 75 govern the form. See our pages on [Form 10F and the TRC](/insights/form-10f-and-tax-residency-certificate-india) and [dividends to a foreign parent](/insights/dividend-from-indian-subsidiary-to-foreign-parent). Our [MFN clause note](/insights/mfn-clause-india-tax-treaties-nestle-ruling) covers the Nestle ruling in more depth.

## What does TEPA not change?

TEPA leaves Indian FDI rules, tax treaties, GST and the Companies Act as they are. It cuts basic customs duty on qualifying goods and binds services commitments. Annual compliance for a Swiss or Norwegian owned subsidiary stays the same, from ROC filings to transfer pricing.

FDI entry stays under the FEMA (Non Debt Instruments) Rules, 2019 and the consolidated FDI policy. Most sectors are on the automatic route. See our page on [FDI automatic route sectors](/insights/fdi-automatic-route-sectors-in-india).

GST stays the same. IGST is still payable on imports on the assessable value plus customs duty. The Social Welfare Surcharge falls with basic duty, because it is a percentage of it.

Transfer pricing and customs valuation of related party imports apply as before. So does the resident director rule in section 149(3) of the Companies Act, 2013. TEPA has no investor state dispute settlement chapter in its list of chapters. Protection of an Indian investment rests on Indian law and the courts.

## What changed in 2025 and 2026

| Date | Before | After | Instrument or source |
|---|---|---|---|
| 1 Jan 2025 | Switzerland applied a 5% MFN rate on dividends to Indian residents | Swiss tax capped at the 10% treaty rate | Swiss Federal Department of Finance notice, 11 Dec 2024 |
| 10 Feb 2025 | No dedicated investor desk | India EFTA Desk launched as a single window | PIB 2101431 |
| 1 Oct 2025 | TEPA signed but not applied | TEPA in force; Indian origin rules apply | Notification 59/2025-Customs (N.T.); PIB 2173138 |
| 10 Mar 2026 | TEPA in force for five months | Government marks two years since signing | PIB 2237451 |
| 7 Oct 2026 | No anniversary review | Prosperity Summit in New Delhi marks one year in force | EFTA news, 8 Oct 2026 |

## What has happened since

This page first went up on 25 Feb 2026. These events came after that date.

1. On 10 Mar 2026 the Government marked two years since signing. It repeated the USD 100 billion objective and listed export sectors such as pharmaceuticals, textiles and marine products. See [PIB release 2237451](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2237451&reg=3&lang=1). It did not report investment received.
2. On 15 Jul 2026 the India UK CETA entered into force, according to [PIB release 2285085](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2285085&lang=1&reg=3). A group with UK and Swiss entities now has two preference routes into India.
3. On 7 Oct 2026 EFTA and India marked the first year of TEPA at the second Prosperity Summit in New Delhi. EFTA companies announced investment plans, but EFTA published no flow figures ([EFTA news, 8 Oct 2026](https://www.efta.int/media-resources/news/efta-and-india-celebrate-one-year-trade-and-economic-partnership-agreement)).
4. On 23 Oct 2026 we found no official figure for FDI counted under Article 7.1. PIB release 2237451 and EFTA's news of 8 Oct 2026 give the objective but no inflow figures. Watch DPIIT's quarterly FDI factsheets, which report equity inflows by source country.

## Worked example

A Swiss parent sells precision components to its Indian subsidiary. Assume the product specific rule caps non originating materials at 60 percent of the ex works price. These figures are for the arithmetic only.

Origin test on the ex works basis:

1. Ex works price per unit: CHF 100.
2. Non originating materials (steel from outside EFTA and India): CHF 55.
3. Share: 55 divided by 100 = 55 percent. That is under 60 percent, so the part qualifies.

Origin test on the FOB basis:

1. FOB value per unit: CHF 104.
2. FOB cap: 60 less 5 = 55 percent.
3. Share: 55 divided by 104 = 52.9 percent. That is under 55 percent, so the part still qualifies.

If the steel price rises and non originating materials reach CHF 62, the ex works share is 62 percent. The part fails the 60 percent cap and pays standard duty.

Duty saving. Annual imports are INR 5,00,00,000 in assessable value. Assume standard basic customs duty of 7.5 percent and a TEPA rate of 0 percent once staging ends. Assume a Social Welfare Surcharge of 10 percent of basic duty.

1. Basic customs duty saved: 7.5 percent of INR 5,00,00,000 = INR 37,50,000.
2. Surcharge saved: 10 percent of INR 37,50,000 = INR 3,75,000.
3. Total cost saving a year: INR 41,25,000.
4. IGST paid at import falls by 18 percent of INR 41,25,000 = INR 7,42,500. That IGST was creditable, so it is a cash flow gain, not a cost saving.

Dividend. The subsidiary declares a dividend of INR 2,00,00,000 to the Swiss parent. At the 10 percent treaty rate, tax withheld is INR 20,00,000.

The parent needs a Swiss TRC and Form 41. The bank remits after Forms 145 and 146, because dividends are not on the rule 220 exempt list. Tribunals have held that surcharge and cess do not apply on top of a treaty rate. This is case law practice, not a rule in the Act.

## Common mistakes

1. Assuming every Swiss product enters India duty free. Fix: check the line in Annex 2.C; gold, pharma and medical device lines may be excluded or staged.
2. Using an origin declaration from a parent that is not an approved exporter. Fix: confirm approved exporter status, or obtain an EUR.1.
3. Relying on proof older than 12 months. Fix: diarise the completion date and ask for fresh proof before it lapses.
4. Leaving out the six digit HS code. Fix: ask the parent to show it on the EUR.1 and on the commercial document.
5. Keeping no Form I file. Fix: hold the bill of materials and cost data that support the rule for five years.
6. Treating Article 7.1 as a company obligation. Fix: plan investment on commercial grounds; the target binds states in aggregate.
7. Applying a 5 percent MFN dividend rate. Fix: apply the DTAA rate; we have seen no Indian notification of an MFN rate for Switzerland.
8. Forgetting the margin shift. Fix: reprice intercompany sales or reset the distributor margin when duty falls.

## Checklist

1. List every product the Indian subsidiary imports from EFTA states, with its eight digit HSN code and annual value.
2. Find each line in India's schedule in Annex 2.C and note its TEPA rate and staging.
3. Identify the product specific rule for each line in Annexure A of Notification 59/2025-Customs (N.T.).
4. Run the ex works or FOB value test on the parent's cost data.
5. Confirm whether the parent is an approved exporter, and agree the proof it will issue.
6. Brief the customs broker to declare origin and enter proof details in the bill of entry.
7. Build a Form I file for each product line and keep it for five years.
8. Review transfer prices for each year in which a duty cut takes effect.
9. Collect the parent's TRC and Form 41 before the first dividend or royalty payment.
10. Register Indian export flows on DGFT's platform if the subsidiary ships to EFTA states.

If you want help with the line by line mapping or the origin file, our [foreign subsidiary team](/services/foreign-subsidiary.html) can do it.

## Key terms

- **Trade and Economic Partnership Agreement (TEPA)**: The free trade agreement between India and the four EFTA states, in force since 1 Oct 2025. It covers goods, rules of origin, services, investment promotion, intellectual property and sustainable development. Indian customs applies it through tariff notifications and Notification 59/2025-Customs (N.T.). (https://krystal7.com/glossary#trade-and-economic-partnership-agreement)
- **European Free Trade Association (EFTA)**: The trade bloc of Iceland, Liechtenstein, Norway and Switzerland. It negotiates trade agreements jointly but is not a customs union, so each state has its own tariff schedule, except Switzerland and Liechtenstein, which share a customs territory and give joint concessions. (https://krystal7.com/glossary#european-free-trade-association)
- **Approved exporter**: An exporter authorised by EFTA customs to make out an origin declaration on a commercial document instead of obtaining an EUR.1 certificate. Under TEPA only approved exporters in EFTA states may use an origin declaration, which Indian customs accepts as proof of origin under Notification 59/2025-Customs (N.T.). (https://krystal7.com/glossary#approved-exporter)
- **EUR.1 movement certificate**: A certificate of origin issued by the customs authority of an EFTA state for goods that meet TEPA origin rules. Exporters who are not approved exporters use it. Indian importers rely on it, within its 12 month validity, to claim the preferential duty at customs. (https://krystal7.com/glossary#eur-1-movement-certificate)
- **Value of non originating materials (VNM)**: A rule of origin test that caps the value of non originating inputs as a percentage of the ex works price or FOB value of the product. Under TEPA the cap varies by product, for example 60 or 65 percent of the ex works price, and the cap on an FOB basis is 5 percentage points lower. (https://krystal7.com/glossary#value-of-non-originating-materials)
- **Most Favoured Nation (MFN) clause**: A clause, usually in a DTAA protocol, promising a treaty partner any lower withholding rate India later gives another country. After the Supreme Court ruling in Nestle SA (19 Oct 2023), India applies such a rate only once the Government notifies it under section 90 of the Income Tax Act, 1961, now section 159 of the Income Tax Act, 2025. (https://krystal7.com/glossary#most-favoured-nation-clause)
- **India EFTA Desk**: A single window launched by the Government of India in February 2025 to help businesses from EFTA states invest in India. It supports investors in sectors such as renewable energy, life sciences, engineering and digital transformation, and promotes joint ventures and SME partnerships. (https://krystal7.com/glossary#india-efta-desk)

## Frequently Asked Questions

### When did the India EFTA TEPA come into force?

TEPA entered into force on 1 Oct 2025. India and the four EFTA states signed it in New Delhi on 10 Mar 2024. The Ministry of Commerce announced the start date on 30 Sep 2025 in PIB release 2173138. CBIC notified the origin rules as Notification 59/2025-Customs (N.T.) on 29 Sep 2025, effective 1 Oct 2025.

### Which countries are covered by TEPA?

TEPA covers India and the four EFTA states: Switzerland, Norway, Iceland and Liechtenstein. EFTA is not a customs union, so each state has its own schedule. Switzerland and Liechtenstein share a customs territory and give joint concessions. EU member states are not covered; their trade with India falls under the separate [India EU FTA](/insights/india-eu-fta-european-companies-india).

### How much does India cut duty under TEPA?

India offers concessions on 82.7 percent of tariff lines, covering 95.3 percent of EFTA exports. Over 80 percent of imports from EFTA are gold, and the effective duty on gold is unchanged. Cuts on Make in India and PLI products phase in over 5, 7 or 10 years. Check each line in Annex 2.C.

### What proof of origin does an Indian importer need under TEPA?

For goods from EFTA, the importer needs an origin declaration by an approved exporter or an EUR.1 movement certificate. Both are valid for 12 months from completion under rule 14 of Notification 59/2025-Customs (N.T.). The importer enters the details in the bill of entry and keeps the Form I file under CAROTAR 2020.

### Can any Swiss exporter make an origin declaration?

No. Under TEPA only approved exporters in EFTA states may make out an origin declaration. Other exporters must use an EUR.1 certificate issued by customs. Swiss Circular R-30 of 11 Aug 2025 says the declaration must be in English, in the set wording, and electronically signed.

### What is the rule of origin threshold under TEPA?

It depends on the product. Many rules in Annexure A cap non originating materials as a share of the ex works price, for example 60 percent. Pharmaceuticals in Chapter 30 use a tariff shift or a 65 percent cap. When the test uses FOB value, the cap is 5 percentage points lower. Some lines use a tariff shift rule instead.

### Does the USD 100 billion commitment bind our company?

No. Article 7.1 is an objective of the EFTA states. It aims to raise FDI into India by USD 50 billion in 10 years and another USD 50 billion in the next 5. Portfolio investment is excluded. If the target is missed, India may consult after 15 years and suspend concessions only after a three year grace period.

### Does TEPA change dividend withholding from India to a Swiss parent?

No. TEPA is a trade agreement. Dividend withholding follows the Income Tax Act, 2025 and the India Switzerland DTAA. The parent claims the treaty rate with a tax residency certificate and Form 41 under section 159(8). After the Nestle SA ruling, an MFN rate needs a notification, and we have seen none for Switzerland.

### What did Switzerland's MFN suspension change?

On 11 Dec 2024 Switzerland announced it would stop applying the MFN clause of the DTAA protocol from 1 Jan 2025. It cited lack of reciprocity. Swiss tax on dividends to Indian residents rose from 5 percent to the 10 percent treaty cap. India's withholding on payments to Swiss companies did not change, because India never applied the MFN rate.

### Does TEPA include investment protection?

TEPA's list of 14 chapters has an investment promotion chapter but no investment protection or investor state dispute settlement chapter. Disputes under TEPA are between states, through consultations and arbitration under Chapter 12. A Swiss investor's protection in India rests on Indian law and the Indian courts.

### Does TEPA help Indian professionals work in Switzerland or Norway?

TEPA gives more certainty on temporary entry of key staff under its annex on movement of natural persons. It also provides for mutual recognition talks for nursing, chartered accountancy and architecture. Domestic visa and work permit rules in each EFTA state still apply. Check the state's schedule in Annex 6.F before a secondment.

### Do CAROTAR rules apply to TEPA imports?

Yes. CAROTAR 2020 applies to every preferential claim in India under section 28DA of the Customs Act, 1962. The importer holds Form I information, keeps records for five years and replies to customs within 10 working days. Where CAROTAR conflicts with the TEPA origin rules, the agreement's rules prevail under CAROTAR rule 8(3).

### Can Indian exporters use TEPA for exports to EFTA?

Yes. Indian exporters prove origin with a certificate of origin in the Appendix 2.A.3 format. Indian authorised agencies issue it, or the exporter self declares it. It must be issued within 5 working days of export, or retrospectively within one year marked "ISSUED RETROSPECTIVELY". Exporter and issuer keep copies for five years.

## Sources

- Press Information Bureau, India EFTA TEPA to come into effect on 1 Oct 2025 (release 2173138), 30 Sep 2025, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2173138&reg=48&lang=2
- Press Information Bureau, India EFTA TEPA comes into force with USD 100 billion investment objective (release 2173968), 1 Oct 2025, https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2173968
- Press Information Bureau, India EFTA Trade Pact backgrounder (release 2177724), 11 Oct 2025, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2177724&reg=48&lang=2
- Press Information Bureau, Inauguration of the India EFTA Desk (release 2101431), 10 Feb 2025, https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2101431
- Press Information Bureau, India UK CETA and Agreement on Social Security enter into force (release 2285085), 15 Jul 2026, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2285085&lang=1&reg=3
- Press Information Bureau, India EFTA TEPA marks two years (release 2237451), 10 Mar 2026, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2237451&reg=3&lang=1
- Press Information Bureau, India's achievements in FTAs for 2025-26 (release 2236134), 6 Mar 2026, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2236134&reg=3&lang=1
- EFTA, EFTA India TEPA enters into force, joint communiqué, 1 Oct 2025, https://www.efta.int/media-resources/news/efta-india-trade-and-economic-partnership-agreement-enters-force-joint
- EFTA, EFTA and India celebrate one year of TEPA, 8 Oct 2026, https://www.efta.int/media-resources/news/efta-and-india-celebrate-one-year-trade-and-economic-partnership-agreement
- EFTA, EFTA India TEPA chapter by chapter factsheet, https://www.efta.int/sites/default/files/documents/legal-texts/free-trade-relations/india/EFTA-India%20Trade%20and%20Economic%20Partnership%20Agreement%20-%20Chapter%20by%20Chapter%20Factsheet.pdf
- EFTA, TEPA Appendix 2.A.3 to the Rules of Origin Annex, Certificate of Origin, https://www.efta.int/sites/default/files/documents/legal-texts/free-trade-relations/india/2.A.3%20to%20RoO%20Annex%20-%20%20Origin%20Certification.pdf
- Ministry of Commerce and Industry, India EFTA TEPA legal texts, annexes and schedules, 10 Mar 2024, https://commerce.gov.in/international-trade/trade-agreements/india-efta-tepa
- Federal Office for Customs and Border Security (Switzerland), Circular R-30 on the EFTA India agreement, 11 Aug 2025, https://www.bazg.admin.ch/dam/fr/sd-web/owg43YRAdZWp/circulaire-aele-inde-fr.pdf
- CBIC, Notification No. 59/2025-Customs (N.T.), TEPA origin rules, 29 Sep 2025, in force 1 Oct 2025, Gazette of India; listed on CBIC's tax information portal, https://taxinformation.cbic.gov.in/
- Income Tax Department, Tax rates under DTAAs compared with domestic rates (dividend rates for Switzerland, Norway and Iceland), accessed 23 Oct 2026, https://www.incometaxindia.gov.in/w/%E2%80%8Btax-rates-dtaa-v.-income-tax-act
- CBIC, Training presentation on section 28DA and CAROTAR 2020 (hosted by Bengaluru Customs), https://bangalorecustoms.gov.in/wp-content/uploads/2024/02/CAROTAR-221023-1.pdf
- Swiss Federal Department of Finance (State Secretariat for International Finance), Suspension of the MFN clause in the Switzerland India DTA, 11 Dec 2024, https://www.estv.admin.ch/dam/en/sd-web/bifa29jbp2im/int-laender-indien-suspension-mfn-en.pdf
- Supreme Court of India, Assessing Officer v Nestle SA (2023 INSC 928), judgment of 19 Oct 2023

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