Rules of Origin (RoO) are essential part of trade rules that become very important in the context of increasing globalisation of production process. Most industrial goods today incorporate inputs from a wide variety of countries (e.g. automobiles, electronic goods etc) and when traded it becomes important to determine their country of origin as tariffs depend on country of origin. International production networks (IPN) promote this new pattern of trade, such that goods travel across several locations before reaching final consumers. Consequently, trade in such products can grow without a commensurate increase in their final consumption as production networks are extended across space. Thus in short, RoO define nationality of traded products. Recognising the importance of the IPN, Asia is emerging as a global hub with rising regional trading agreements acting as facilitators in the process. Rules of origin in trade agreements (Free Trade Agreements or Preferential Trade Agreements) acts as a crucial factor in the case of fragmented trade compared with trading in conventional final products. Since value added at each stage of production is normally relatively little, this kind of trade presumably is more sensitive to trade costs and delays arising from rules of origin compliance. In such arrangements RoO try to ensure that tariff preferences are enjoyed only by member country imports and not outside imports.