CEPA Registration Certificate - Process, Fees, Eligibility, etc.

Exporters seeking to benefit from the free trade agreement between India and UAE through CEPA registration certification must understand the following. The CEPA certificate, along with the Certificate of Origin (COO), plays a central role in certifying export goods for duty-free exports, lower tariffs, and easier access to the service market. Here, we focus on the requirements to acquire the CEPA certificate, the advantages of the CEPA Agreement, and the key procedures and documents needed to facilitate seamless import and export between India and the UAE. Bizfoc guides you through the CEPA Registration process hassle-free.

What is a CEPA Certificate?

A CEPA certificate, or Certificate of Origin (COO), is a document that certifies the origin of goods exported from India to the United Arab Emirates (UAE) under the Comprehensive Economic Partnership Agreement (CEPA). The CEPA is a free trade agreement that came into effect on May 1, 2022 and provides benefits such as duty-free exports, reduced tariffs, and easier market access for service providers.
The COO is required for customs clearance in the importing country and can be issued by government agencies like the DGFT, the Spices Board of India, and other authorized legal entities.

Benefits of CEPA Agreement

• Boosting trade agreements by eliminating tariffs on a wide range of goods, increasing import/export competition between countries.
• Stimulating economic growth by providing easy access to markets, encouraging investment, and fostering innovation in countries.
• Creating job opportunities by attracting investments and expanding industries.
• Encouraging cross-border transactions between countries.
• An effective mechanism for joint administration and resolution of disputes.

CEPA Rule of Origin (RoO)

As per the CEPA Agreement between India-UAE, products are deemed originating from a party country based on specified criteria:

• Whole Added Criteria
• Value-added criteria for products
• Change in headings and subheadings in the Harmonized System (HS) chapter
• Final manufacturing must be done in the exporting country before export
• Sharing detailed product information with authorities to comply with preferential treatment
• The product must undergo sufficient work or production per the Product-Specific Rules (PSR) agreed under CEPA

Note: Lower value addition requirements apply only to the ornaments and jewelry sector.

Proof of Origin

Proof of origin can be provided through:

• Entirely digitalized certificates issued by authorized government bodies
• Documented certificate of origin or CEPA registration in electronic or hard copy format issued by a government-authorized body
• Certificate of origin or declaration by an approved exporter as per the rules

Eligibility of Product under CEPA Certificate Agreement

A product will qualify for preferential treatment under CEPA if it meets the following requirements:

• Wholly obtained or produced products, such as live animals, agricultural products, animal-based and marine animal-based products, products based on natural resources, and products made exclusively within the territory of the exporting country
• Products that have undergone adequate production work in compliance with Product Specific Rules

Note: Exporters must present a Certificate of Origin to ensure their products are eligible for preferential treatment under the trade agreements between the nations.

Required Documents for CEPA Registration

• Commercial Invoice
• DSC Software
• Mobile Number and Email Address
• DGFT Login
• Organization-based Digital Signature Certificate
• Updated Import Export Code
• Product Description
• Purchase Order from the importer company
• Manufacturer Exporter Declaration on company letterhead
• Purchase Bills detailing quantity and origin of raw materials and consumables used in export products

How to Get a CEPA Certificate?

The process of acquiring a CEPA Certificate involves the following steps:

1. Account Creation: You'll need to create an account on the DGFT (Director General of Foreign Trade) portal using a Digital Signature Certificate (DSC) or any other authorized government portal login.
2. Documentation: Submit relevant documentation to support the authenticity of your products along with verifiable documents at the time of application.
3. Verification and Authorization: The issuing authority will assess your application and documents. They may conduct a verification process to confirm the origin of your products.
4. Certification: Upon successful verification and approval, you'll be issued a CEPA Certificate (Certificate of Origin) in English containing details about your product and exporting company.

Fees and Validity of CEPA Registration Certificate

Validity: The CEPA Certificate is valid for 12 months from the date of issuance. Exporters can apply for re-issuance after expiry.

Penalty for Non-Compliance with CEPA Agreement

The CEPA (Comprehensive Economic Partnership Agreement) itself does not include fines for non-adherence to the established measures. It primarily aims at facilitating trade opportunities between India and the UAE.

However, there are some penalties for failure to meet the conditions attached to availing such benefits:

• Loss of Duty Benefits: The first one is to lose the preferential import duty rate under CEPA for the exports of your products to the UAE. You would be obligated to pay the previously established standard duty rates.
• Potential Legal Action:In some circumstances, for the concrete violation and severity of it, Indian authorities may file a legal case against the individual. This may include penalties in the form of fines or otherwise as prescribed by law under the trade arrangements outside CEPA.

To obtain the Certificate of Origin and to claim the duty exemptions, parties must adhere to the terms of the CEPA agreement. This is crucial for facilitating the export process and eliminating any potential problems.

Why Choose Bizfoc for CEPA Registration?

BizFoc is a one-stop solution that you can trust to register your company under India UAE CEPA. Our team of qualified chartered accountants, lawyers, and company secretaries is a specialist in business incorporation services. We simplify the process, advise on business requirements, and support business beyond the start. We get your name applied within 4 hours of our engagement, and our success rate for name reservations stands at 98.5%. Start now with BizFoc as your trusted business partner for all your legal and business registration services!

Conclusion

In summary, obtaining the CEPA certificate is crucial for exporters aiming to maximize the advantages of the CEPA agreement. From increasing economic growth to promoting innovation and creating employment opportunities, the CEPA framework aims to provide positive trade relations between India and the UAE. Compliance with the requirements of the certificate is equally beneficial for passing customs and obtaining preferences in terms of non-tariff customs preferences and access to the market. Subsequently, firms will be able to avoid various pitfalls of export trade and maximize their efficiency according to the CEPA agreement by adhering closely to the procedures and criteria described above. Get in touch with Bizfoc now and leave the hassle of exports and unlocking of new UAE market to us. We have professional staff to help your business and guide it to the best of the agreement of CEPA.

Frequently Asked Questions (FAQs) on CEPA Registration Certificate