South Asian businesses can now trade more efficiently and cost-effectively thanks to the South Asian Free Trade Area (SAFTA). The SAFTA Certificate of Origin is a key requirement for accessing SAFTA benefits. The document certifies that a member country’s exports qualify for preferential tariff treatment.
A detailed overview of the SAFTA Certificate is provided in this article. We cover the meaning, eligibility, benefits, documentation, application process, fees, timelines, and why RegisterAdda is the best platform for obtaining one.
Table of Contents
What is SAFTA?
The SAFTA is a legal agreement signed by the SAARC (South Asian Association for Regional Cooperation) countries to encourage and sustain mutual trade and economic cooperation. From 1st January 2006, it came into effect with the aim of reducing trade barriers and customs duties among South Asian countries. The Member of SAARC countries under the SAFTA are – India, Afghanistan, Bangladesh, Bhutan, Pakistan, Maldives, Nepal and Sri Lanka. As per the SAFTA agreement, these countries agreed to reduce trade barriers and tarris for hassle-free trade within these regions.
What is a SAFTA Certificate of Origin?
A SAFTA Certificate of Origin certifies that goods being exported were entirely acquired or sufficiently manufactured in the exporting country, therefore qualifying for tariff concessions under the SAFTA agreement. To reduce or zero customs duties, promote regional trade and verify the origin of goods under the preferential trade arrangements are the key purposes of the SAFTA Certification.
Eligibility for SAFTA Certificate
- The Goods must have originated in India.
- Exported goods destinations must be SAFTA member countries.
- Minimum percentage of the product’s value that should originate within India.
- Goods directly shipped from India to the SAFTA Country without transiting by non-SAFTA nations.
Advantages of SAFTA Certificate
Obtaining a SAFTA Certificate offers numerous benefits to exporters and importers in the region:
Obtaining SAFTA Certificate has multiple advantages such as –
- Taxes on imports from SAFTA nations may be reduced or eliminated, which encourages cost-effective trade.
- The competitive pricing helps them expand into neighboring south Asian countries with these benefits.
- SAFTA Registration aids to simplify the process of documentation at customs, also encourage faster clearances and reducing inspection time.
- Business with SAFTA certification which is issued by the DGFT helps to build trust of the exporter and also builds long-term trade relationships.
- SAFTA also encourages economic interdependence and cooperation among SAARC nations, improving geopolitical and trade stability.
Documents Required for SAFTA Certificate
Get the list of documents required for SAFTA Certificate here –
- 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
Note: The exact documentation can vary according to the country and their certifying authorities.
SAFTA Certificate Application Process
SAFTA Certification stepwise process is as follow:
Step 1: Register as an Exporter
Before going to register for SAFTA, the applicant needs a valid IEC and is registered with your concerned authority.
Step 2: Prepare Supporting Documents
If you have IEC or done with this registration you need to prepare supporting documents such as invoice, shipping bills, manufacturing and packing list.
Step 3: Submit Application
Submit an application for the SAFTA Certificate to an authorized agency (DGFT/FIEO/Chamber of Commerce). This can be done online through platforms like the Common Digital Platform for Certificate of Origin in India.
Step 4: Verification of Origin
The authority reviews the documents and may inspect the manufacturing process to confirm the origin criteria are met.
Step 5: Issuance of Certificate
Once verified, the SAFTA Certificate of Origin is issued and can be presented to the customs authorities of the importing country to claim tariff benefits.
Timeline to Obtain SAFTA Certificate
The typical processing time is 2 to 5 working days, depending on the completeness of documentation and the certifying body’s internal processes.
For urgent cases, some agencies offer expedited processing.
Fees for SAFTA Certificate
Here is the fees for SAFTA Certificate given below:
| Government Fees | ₹736/- |
| One-Time Registration fees | ₹500/- |
| Application Fees | ₹2000/- |
| Total Charges | ₹3236/- |
Penalties for Misuse or False Declaration
False declaration or misuse of the SAFTA Certificate can result in:
- Revocation of certificate
- Blacklisting of the exporter
- Legal action under customs or foreign trade laws
- Loss of benefits under the SAFTA agreement
Hence, it is critical to ensure accuracy and authenticity of all submissions.
FAQs on SAFTA Certificate
1. Is a SAFTA Certificate mandatory for all exports to SAARC countries?
No, it is only mandatory if you wish to avail preferential tariff benefits under the SAFTA agreement.
2. Can I apply for the certificate online?
Yes. Many authorized bodies provide online portals to apply for and download the certificate.
3. Can a third-party exporter apply for the SAFTA certificate?
Yes, but they must demonstrate manufacturing linkage and meet origin criteria.
4. Is SAFTA different from SAPTA?
Yes. SAPTA (South Asian Preferential Trading Arrangement) was an earlier, less comprehensive agreement. SAFTA replaced it for deeper trade liberalization.
5. What happens if customs reject the certificate?
You may appeal the decision or submit additional proof. Working with experienced consultants can help avoid such scenarios.