In a move that could impact Indian textile exporters, the European Union is considering modelling its ‘rules of origin’ for imports on the US lines.

Speaking at India textiles summit here, joint secretary KK Jalan said the new rules which are being patterned on the US model will make it compulsory for the exporter to mention 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 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 the EU, the government may consider re-shaping the duty entitlement passbook scheme so that India does not have to face such investigations.