AIFTA Certificate for Brunei Darussalam - Procedure, Documents and Fees

The ASEAN-India Free Trade Agreement (AIFTA) Certificate of Origin offers significant advantages for exporters and importers in Brunei Darussalam, facilitating trade between Brunei and India. Below are the key benefits:

• Boosts Brunei-India Trade: Under the AIFTA tax reduction plan, most of the products exported by the Brunei-based companies are guaranteed low taxes when imported to India. This cuts down costs and challenges in the Indian market, hence improving competition.
• Preferential Tariff Reductions: The Indian buyers get a right to a lower customs duty on the eligible goods imported from Brunei under the AIFTA tariff reduction scheme. This makes it cheaper and effective in increasing competition in the Indian market.
• Strengthens ASEAN-India Economic Ties: Brunei exporters have an excellent opportunity to gain better market access and reduce costs, which in turn have helped in lowering Brunei export prices, which are more attractive to the Indian buyers.
• Enhances Market Access for Brunei Exporters: India provides largely preferential market access to the exporters of Brunei that enables them to provide competitive prices in India that make the products from Brunei more appealing to the intended buyers in the Indian market.
• Encourages Foreign Investments in Brunei: These measures will make Brunei a more attractive gateway to the region’s manufacturing and distribution platforms via adopting lower import duties to foster trade between the two nations and the other members of ASEAN.

The AIFTA has impacted most of the sectors of Brunei Darussalam by positively offering trade advantage with India and decreasing most tariffs between ASEAN and India. Here are the key industries in Brunei that benefit from AIFTA:

• Oil & Gas Industry: From AIFTA, Brunei’s oil and gas sector gains lower import costs on the machines and equipment from India, increased energy-related investments, and better trade relations in the energy sector.
• Petrochemical Industry: The petrochemical sector has cheaper raw materials and industrial machinery for export from India in refining, chemicals, and the supply chain for increasing bilateral trade.
• Agriculture & Halal Food Industry: AIFTA promotes Brunei’s halal food and agricultural exportation by making tariffs lower, accessing the market, and increasing the demand for halal-certified foods and products in India.
• Fisheries & Aquaculture: Brunei stands to gain from a lower export tariff on fish and fishery products to India, cheaper fish feeds and aquaculture inputs, and increased market access to India.
• Manufacturing & Industrial Goods: Under AIFTA, Brunei enjoys preferential tariffs on exports to India, non-tariff for the import of necessary inputs for manufacturing, and better supply-side integration to support industrialization.
• Tourism & Hospitality: AIFTA is beneficial to the tourism industry in Brunei since it opens up the door for travel and business, connecting local and Indian investors in the hotels and resorts and hospitality fields.
• Financial Services & Banking: The financial sector gains from the increase in Foreign Direct Investment (FDI) and better internationalization of banking and insurance services, along with intensifying economic relations between India and Brunei.
• Logistics & Transportation: AIFTA also facilitates customs, reducing trade barriers affecting ships and aircraft, developing Brunei logistics infrastructure, and thereby enhancing the trade link between Brunei and India.

The eligibility requirements to issue an AIFTA Certificate of Origin under the ASEAN-India Free Trade Area (AIFTA) arrangement are as follows. The certificate confirms that the products exported comply with the requirements of origin to qualify for preferential tariff advantage.

Wholly Obtained or Produced Products

Products that are fully sourced or produced within the exporting country, such as naturally occurring minerals, cultivated crops, or items made solely from these materials, are considered wholly obtained or produced.

Not Wholly Obtained or Produced Products

For other goods, at least 35% Regional Value Content (RVC) is required, along with a Change in Tariff Classification (CTC) at the 6-digit Harmonized System (HS) code level. This means imported materials used must fall under a different tariff category than the final product.

Some products may have specific rules, so exporters should refer to the AIFTA agreement or relevant authorities for guidance.

Here is the list of documents required for an AIFTA Certificate of Origin for Brunei Darussalam:

• Application Form
• Manufacturing Cost Statement (MCS)
• Commercial Invoice
• Digital Signature Certificate (DSC)
• Importer Exporter Code (IEC) Certificate
• Supporting Documents (e.g., bills of materials, production records)
• AIFTA Certificate of Origin Form