What is CEPA and Why It Matters to Indian Exporters?
The India-Korea Comprehensive Economic Partnership Agreement (CEPA), signed in 2009 and implemented in 2010, is a bilateral trade agreement that offers preferential treatment to Indian goods and services exported to South Korea. Unlike a standard Free Trade Agreement (FTA), CEPA is broader in scope-covering trade in goods, services, investment, and economic cooperation.
Why Indian Exporters Must Pay Attention to CEPA?
Under CEPA, thousands of Indian products are eligible for preferential tariff rates when exported to South Korea. However, to avail these tariff concessions, it is mandatory to submit a Certificate of Origin (CoO) issued under the India-Korea CEPA framework.
This is where Afleo plays a crucial role-we assist Indian exporters in obtaining CoO seamlessly and compliantly, ensuring their goods qualify for duty benefits in Korea.
Afleo: Helping Indian Exporters Obtain Certificate of Origin (CoO) Under CEPA
Indian exporters must submit a CoO to prove the origin of goods to avail tariff concessions under CEPA. Afleo is a DGFT-authorized consultant, offering end-to-end support for:
- Preparing CoO applications
- Digital submission on the DGFT portal
- Liaisoning with relevant authorities
- Ensuring accurate product classification and documentation
Whether you’re exporting textiles, pharmaceuticals, auto components, chemicals, or engineering goods, we ensure your CoO is processed swiftly-saving time, cost, and risk of rejection.
Key Provisions of India-Korea CEPA Benefiting Indian Exporters
Here are the specific CEPA benefits from an Indian exporter’s perspective:
-
Tariff Concessions:
Over 85% of Indian exports get duty relief in Korea (e.g., textiles, pharma, auto parts). -
Reduced Trade Barriers:
CEPA simplifies Korean regulatory requirements for Indian goods. -
Greater Market Access:
Especially for MSMEs seeking new international markets. -
Ease of Doing Business:
Through mutual recognition of standards and streamlined customs clearance.
But remember-these benefits are only unlocked if your shipment is backed by a valid CoO under CEPA.
Top Indian Products Benefiting Under CEPA
| Sector | CEPA Benefit Summary |
|---|---|
| Textiles | Reduced Korean tariffs; faster market entry |
| Pharmaceuticals | Regulatory ease for generic drug exporters |
| Auto Components | Higher demand from Korean automotive brands |
| Chemicals | Liberal access and stable regulatory framework |
| Engineering Goods | Tariff-free trade opportunities for components |
How to Get a Certificate of Origin (CoO) for CEPA Exports?
- Check HS Code Eligibility: Ensure your product falls under India-Korea CEPA tariff schedule.
- Submit Application: Apply via DGFT portal with supporting documents (invoice, packing list, etc.)
- Verification & Approval: Authorities verify product origin, classification, and trade route.
- Issuance of CoO: Afleo assists in the entire process for smooth issuance.
Need help? Contact Afleo – your CoO issuance partner under CEPA.
Common Mistakes Exporters Make Without Expert Help
- Wrong product HS code classification
- Submitting incomplete or non-compliant documents
- Failing to understand Korean-specific import conditions
- Delays in CoO issuance = missed shipments and duty loss
Afleo mitigates these risks with expert guidance.
2025 CEPA Modernization: New Opportunities for Indian Exporters
The ongoing 2025 CEPA review includes updates that will further benefit Indian exporters:
- Digital trade facilitation: Paperless CoO and e-customs in focus
- Green exports: Preferential access for sustainable products
- Greater MSME inclusion: Streamlined CoO for small-scale exporters
- Eased professional services movement: Better terms for IT & consulting firms
Staying compliant today ensures you’re ready for CEPA 2.0.