SAFTA Certificate - Process, Importance, Documents, Benefits & Others Overview

The SAFTA Certificate is important for both importers and exporters as it not only helps them in trade but also gives preferential treatment and several other benefits like reduction or no customs duties on products listed under the SAFTA agreement at all. Therefore, acquiring a SAFTA RCMC Certificate is not just necessary but also important for businesses looking forward to expanding their business and market reach in the South Asian region. Under the right guidance with experienced experts like Bizfoc, one can easily secure a SAFTA license smoothly and efficiently. Contact us today and get your certificate as early as you can!

What is a SAFTA Certificate?

The SAFTA certificate is a certificate of origin issued by DGFT for importers and exporters of India. This certificate could add a commercial invoice to show the country of origin of goods.

A SAFTA Agreement is a regional free trade agreement among South Asian Association for Regional Corporation (SAARC) countries, it includes members of eight major countries including India. The SAARC's members are the Islamic Republic of Pakistan, the People's Republic of Bangladesh, the Democratic Socialist Republic of Sri Lanka, the Kingdom of Bhutan, the Republic of the Maldives, the Kingdom of Nepal, and the Republic of India.

Under the terms mentioned in the SAFTA agreement, the countries agreed on reducing or eliminating tariffs on goods and services, fascinating and cost-effective cross-border trade. Additionally, SAFTA contains provisions for origin guidelines, dispute resolution procedures, and safeguard measures. To supervise its execution and handle any potential problems, the agreement also calls for the formation of an expert committee.

SAFTA is an abbreviation used for the South Asian Free Trade Area, was signed in 2004 and came into force on January 1st, 2006, categorizing India and Pakistan as Nor-Least Developed Contracting (NLDC) States and Bangladesh, Maldives, Bhutan, and Nepal categorized as Least Developed Contracting (LDC) States. On the other hand, Afghanistan was designated as an LDC under SAFTA after joining SAARC in 2007.

Benefits of the SAFTA Certificate Registration

The SAFTA (South Asian Free Trade Area) Certificate offers various key benefits, which are mentioned below:

• Aids in preventing shipment issues.
• Boosts foreign investment among members of countries in SAARC.
• Elevate the company's reputation and credibility.
• For items of Indian origin to be eligible for incentives in the country of export, exporters must assert their claim.
• Access to a broader market within South Asia.
• By reducing tariffs and trade barriers, it has improved integrity and transparency among countries for the benefit of South Asian people.

Importance of the SAFTA Certificate

Acquiring a SAFTA Certificate of Origin is important due to several reasons discussed here:

• The Certificate of Origin needs to be attached by importers and exporters to the commercial invoice. A SAFTA Certificate is a legally binding document that verifies the origin of products being imported into the countries that are importing them.
• The exporter can apply for tax exemptions if they have a SAFTA license. A business is often excluded from charging GST if an exporter includes a certificate of origin or SAFTA Certificate Online with their bill or invoice.
• The SAFTA Certificate is required for exporters to be eligible for any benefits granted to items of Indian origin (made in India) in the country of exportation.
• An exporter with SAFTA certification benefits from increased sales as well as market preference. If the exporter does not include GST in the selling price of the exported products, the importer from another country will save money. International importers will give preference to an exporter with "Base Price + No Tax" terms.

Types of SAFTA Certificate

There are mainly two main categories of SAFTA Certificate or Certificate of Origin, both of which are mentioned below -

Preferential Scheme: Exporters must get a SAFTA Certificate Online relevant to the preferential scheme and adhere to the Rules of Origin specified in their preferential certificates to secure a tariff exemption for goods shipped.

Non-Preferential Scheme: Non-Preferential Certificates of Origin do not grant the holder a reduction in tariffs; rather, they are used to demonstrate the place of manufacture.

Prerequisite for the SAFTA Certificate for Export

The below-listed requirements are needed before the submission of the application for the SAFTA Certificate. So one must acquire them on priority:

• IEC Code Registration
• Registered office details like the company’s name, partner’s name, directors, managing directors or proprietors, email ID, mobile number, and address.
• Details about each branch or unit, including its address and GST number.
• DSC of directors
• Details of trade agreement, issuing agency, regional office, and issuing office
• Invoice number

Documents Required for SAFTA Certificate

For the smooth acquisition of the SAFTA Certificate, Indian exporters must gather the following documents:

• Import-Export Code (IEC) Certificate
• Certificate of registration of company or organization
• Details of each director, partner, or proprietor
• Exporter details
• Commercial Invoice
• Bill detailing the quantity or country of origin of materials or consumables used in export goods
• Declaration from the manufacturer on the letterhead
• Product details
• Details of Raw materials
• Description of goods
• Purchase order from the importer
• Digital signature of Organization
• DSC Software
• Cost statements
• CUSDECS and Imports Invoice for confirming imported raw materials

How to apply for SAFTA Certificate in India

The following steps are included in the SAFTA certificate registration process:

1. Step 1: Acquiring an IEC Code
   Getting the IEC Code is the first step towards the SAFTA Registration process. Setting an account using organization-based DSC (integrated IEC). All import and export operations in India require the IEC code, a 10-digit PAN-based code. Via IEC, all of the data will be retrieved.
2. Step 2: Eligibility for Applying
   Verify whether the exported items are eligible for preferential treatment under the terms of the SAFTA agreement. The requirements that must be fulfilled, which differ based on the kind of product, for items to be deemed to originate from a SAFTA member country are outlined in the SAFTA agreement.
3. Step 3: Submission of Application Form
   The exporters should fill in the necessary details and complete the form to obtain a certificate of origin authorized under the SAFTA trade agreement.
4. Step 4: Document Verification
   Once the exporter successfully uploads the documents, the organization verifies them and grants the SAFTA Certificate after approval.
5. Step 5: Submitting Fees
   Make the payment of the required fees after applying.
6. Step 6: Granting License
   SAFTA Certificate may arrive within 2 to 3 working days after issuance.

Fees for Obtaining an SAFTA Certificate

The general fee structure for acquiring your SAFTA Certificate is mentioned as follows:

• Government Fees Required: ₹ 736/-
• One-time registration Fees: ₹ 500/-
• Application Fees: ₹ 2000/-
• Total Charges: ₹ 3236/-

Time taken in obtaining SAFTA Certificate

Once the items meet the requirements for qualifying as origin goods under the terms of the SAFTA agreement, the SAFTA Certificate is typically issued within two to three working days of the date of shipment or at the time of export.

In case, due to extraordinary circumstances, a Certificate of Origin cannot be granted, it may be issued retroactively, provided that it is issued no later than 45 days after the date of shipment and explicitly states "ISSUED RETROSPECTIVELY" on the certificate.

Other Free Trade Agreements

There are multiple options from where one can generate a certificate of origin from India for import benefits to importing countries under a Free or Preferential Trade Agreement:

• ICPTA - India Chile Preferential Trade Agreement
• SAFTA - South Asia Free Trade Agreement
• SAPTA - SAARC Preferential Trade Agreement
• IKCEPA - India Korea Comprehensive Economic Partnership Agreement
• IJCEPA - India-Japan Comprehensive Economic Partnership Agreement
• ISFTA - India Sri Lanka Free Trade Agreement
• AIFTA - ASEAN India Free Trade Agreement
• APTA - Asia Pacific Trade Agreement
• GSP - Generalized System of Preferences
• GSTP - Global System of Trade Preferences
• IMCECA - India Malaysia Comprehensive Economic Cooperation Agreement
• ISCECA - India Singapore Comprehensive Economic Cooperation Agreement

Authorized Agencies Issuing Certificates of Origin in India

Here is a list of authorized agencies issuing certificates of origin in India for various trade agreements:

• Asia Pacific Trade Agreement (APTA) - Export Inspection Council (EIC); Export Development Authorities; Development Commissioners of EPZs and SEZs; FEIO
• Global System of Trade Preferences (GSTP) - EIC for all products; Tobacco Board, Gunter for Tobacco and Tobacco Products
• India Afghanistan PTA - EIC
• India ASEAN Trade in Goods Agreement - EIC
• India-Chile PTA - EIC
• India-Japan CEPA - EIC
• India-Mercosur PTA - EIC
• India-Singapore CECA - EIC
• India-South Korea CEPA - EIC
• South Asia Free Trade Agreement (SAFTA) - EIC

Why Choose BizFoc?

Choosing Bizfoc for your SAFTA Certificate can be a wise choice, and here’s how it can help make the SAFTA registration process smoother and more efficient. Below mentioned are the reasons to choose Bizfoc:

• Expert Guidance and Experienced Personnel
• Streamlined Process
• Personalized Service
• Accuracy and Efficiency
• Compliance Fulfillment
• Support of Experts

Conclusion

In conclusion, obtaining a SAFTA (South Asian Free Trade Area) Certificate of Origin is necessary as it verifies that the goods are produced or significantly processed in India, thus qualifying for trade benefits under the SAFTA agreement. The South Asian Free Trade Area (SAFTA) registration agreement focuses on enhancing economic integration and boosting trade among South Asian nations. Without a Certificate of origin, one cannot operate its Import and Export business. To avail of the benefits of FTA (Free Trade Agreement) get your SAFTA RCMC Certificate through the online SAFTA Certificate procedure and also get a Certificate of Origin with the help of Bizfoc!

Frequently Asked Questions (FAQs)