SAFTA Certificate of Origin in India – A Complete Guide for Indian Exporters

As the world becomes more interconnected in a globalized world, free trade agreements (FTAs) now stand as the key pillar in removing hindrances and enabling freer trade flows. One such significant trade agreement is that of the South Asian Free Trade Area (SAFTA), which makes way for preferential tariff treatment between the nations of South Asia. For Indian exporters, having a SAFTA Certificate of Origin can make the trading routes with their regional countries smoother. This ultimate guide by Afleo, your compliance specialist, spells it all out for you about the SAFTA Certificate, from its purpose to the step-by-step registration process in India.

What is SAFTA (South Asian Free Trade Area)?

Background and Formation

SAFTA was signed in 2006 under the South Asian Association for Regional Cooperation (SAARC). The major objective is to foster economic cooperation and regional integration among South Asian countries through the liberalization of trade.

Participating Countries

SAFTA comprises the following eight SAARC member countries:

• Afghanistan
• Bangladesh
• Bhutan
• India
• Maldives
• Nepal
• Pakistan
• Sri Lanka

Objectives and Scope

The objectives of SAFTA include:

• Removal of trade barriers such as tariffs and quotas
• Strengthening economic collaboration and trust
• Promoting sustainable and equitable trade throughout the region

What is the SAFTA Certificate of Origin?

Definition and Legal Basis

The SAFTA Certificate of Origin is a formal certificate verifying the origin of a product in one of the SAFTA member countries and making it qualify for preferential tariff treatment under the agreement.

Role in International Trade

The certificate allows importers in SAFTA member countries to enjoy lower or nil customs duties, as long as the products are from another member of SAFTA.

Validity and Use Case

A SAFTA certificate is only valid for one consignment and should be produced at the time of customs clearance within the country of importation. It facilitates easier trade under the SAFTA tariff concessions.

Why is the SAFTA Certificate necessary for Indian Exporters?

Trade Benefits (Lower Tariffs)

Indian exporters can avail of lower duties or duty-free access, thereby making their products more competitive in the South Asian market.

Increased Market Access

SAFTA makes it easier to enter the markets of neighbouring countries such as Bangladesh, Nepal, and Sri Lanka-markets that are in great demand for Indian products.

Competitive Advantage in South Asia

With the SAFTA certificate, the exporter enjoys a cost advantage over non-SAFTA country exporters and is able to gain more market share.

Types of Certificate of Origin in India

Preferential vs Non-Preferential

• Preferential CoO: For products traded under FTAs such as SAFTA, ASEAN-India FTA, etc.
• Non-Preferential CoO: Certifies origin but does not provide tariff concessions; frequently demanded by importing nations for statistical purposes or protection of health and safety.

SAFTA vs SAPTA vs CEPA/CECA/FTA

• SAFTA: Free trade agreement between SAARC countries
• SAPTA: Its predecessor with restricted tariff cuts
• CEPA/CECA: Comprehensive Economic Partnership/Cooperation Agreements with single countries (e.g., Japan, Korea)

FTA: General term for free trade agreements between two or more nations

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SAFTA Registration Process in India (Step-by-Step Guide)

Step 1: Determine Eligibility Based on Product HS Code

Verify if your product is eligible under SAFTA concessions by determining the proper Harmonized System (HS) Code.

Step 2: Application Submission (Portal/Online Procedure)

Go to the CoO e-platform and register to submit and complete the SAFTA application form, choosing the proper FTA scheme.

Step 3: Document Verification & Clarifications

The issuing authority will examine the application and can call for clarifications or additional supporting documents for verification.

Step 4: Issuance of SAFTA Certificate

After approval, the certificate is electronically or manually issued, which needs to be communicated to the importer.

Pro Tip: Download Afleo’s SAFTA Registration Flowchart to map this process.

Documents Required for Applying for the SAFTA Certificate

• Import Export Code i.e. IEC Status needs to be active
• Commercial Invoice and Packing List
• Bill of Lading or Shipping Bill
• Manufacturing Declaration (Self-attested)
• Manufacturing Process Flow Chart
• Any other document as per the requirements of the certifying authority

SAFTA Certificate Fees in India

Government Charges

SAFTA Online Application Govt. fees are Rs. 708 /-per Certificate

Service Provider/Consultant Fees (Optional)

If you have decided to take the services of an export consultant such as Afleo, nominal service fees can be applicable for handling applications and documentation assistance.

Renewal Charges

As the SAFTA certificate is invoice-specific, there is no renewal charge. However, if your exporter registration lapses, it needs to be renewed independently.

Time Required to Obtain a SAFTA Certificate

Application Handling Time

Normal processing time is 1-2 working days if all documents are properly in place.

Certificate Dispatch Timeline

Normally issued within 48 hours, subject to any queries or clarifications raised.

Fast-track Options

Expedited processing on request is provided by some issuing agencies, particularly for expedited shipments.

Authorized Agencies for Issuing Certificates of Origin in India

• Directorate General of Foreign Trade (DGFT)
• Export Inspection Agency (EIA)
• Federation of Indian Export Organisations (FIEO)
• Chambers of Commerce & Industry (e.g., ASSOCHAM, FICCI)
• Marine Products Export Development Authority (MPEDA) – for seafood exporters

Here is a downloadable list of regional offices and their contact information.

Advantages of the SAFTA Certificate for Indian Exporters

• Reduced Custom Duties: Lowered tariffs enhance the price competitiveness.
• Accelerated Customs Clearance: Correct documentation guarantees smooth border clearance.
• Increase in Export Volume: Cost advantage and access to markets directly influence higher exports.

Other Major Free Trade Agreements India Signed

India has signed several FTAs apart from SAFTA, including:

• ASEAN-India FTA
• India-UAE CEPA
• India-Korea CEPA
• India-Japan CEPA
• India-Sri Lanka FTA
• India-Malaysia CECA
• India-Australia ECTA

Common Mistakes to Avoid While Applying for a SAFTA Certificate

• Filing Incorrect HS Codes: Results in rejection of tariff advantage.
• Lack of Supporting Documents: Results in processing delay.
• Misuse of Country of Origin: May lead to a penalty or certificate cancellation.
• Neglecting Changes in Trade Regulations: Keep yourself updated with the latest notifications.

SAFTA Certificate Validity, Renewal & Updates

• Validity: Generally, one shipment only.
• Requirement for New Certificate: Every invoice needs a different certificate.
• Requirements for Updates: When the product is re-exported or changed, an updated certificate is needed.

Is a Separate SAFTA Certificate Required for Every Invoice?

Yes, every invoice needs a different SAFTA certificate, even if the buyer or product is the same. This allows precise tracking and clearance at customs.

How to Track and Verify a SAFTA Certificate?

• Visit the DGFT Certificate of Origin portal for online verification.
• Use the tracking number provided at the time of application to verify the status.

Why Choose Afleo for SAFTA Registration?

PAN India Service

We provide hassle-free services in every Indian state with fast turnaround times.

Reasonable Charges

Clear-cut pricing with no extra fee-designed for SMEs and big exporters as well.

Export-Compliance Specialists

We have DGFT-certified experts with many years of experience in trade documentation.

24×7 Support & Free Consultation

Need help with filing? Our experts are available round-the-clock with real-time assistance via chat, email, and phone.

“Thanks to Afleo’s expert guidance, we were able to expand our exports to Nepal and Bangladesh with minimal effort.” – Rohit K., Textile Exporter