AIFTA Registration Certificate in India - AIFTA Certificate of Origin

Here’s a complete list of documents you need to submit for India-ASEAN Free Trade Agreement (AIFTA) Registration.

The ASEAN-India Free Trade Agreement (AIFTA) enables the import and export of certain goods between India and ASEAN countries at preferential rates of duty. To claim these preferential rates, exporters must obtain a Certificate of Origin (COO) that verifies that their goods meet the origin criteria specified in the agreement.

There are two types of schemes associated with the AIFTA COO: preferential and non-preferential schemes. Under the preferential scheme, eligible goods exported to ASEAN countries attract lower or zero tariff rates. The AIFTA CoO is required to claim these preferential rates. Whereas the non-preferential scheme applies to goods traded between India and ASEAN countries that are not covered under the preferential scheme. The non-preferential scheme is mainly used for statistical purposes and to enforce trade regulations. In such cases, a COO is also required, but it is not needed to claim preferential tariff rates. The Certificate of Origin for AIFTA is issued on Form AI. Exporters must present a valid Form AI at the customs authorities of the importing ASEAN country to claim preferential tariff treatment. Form AI is distinct from Form A used under Generalised System of Preference (GSP) and other CoO forms used under different trade agreements. Under AIFTA, the Certificate of Origin (Form AI) can be accepted by importing country customs even when the commercial invoice is issued by a company in a third country (not necessarily the exporting country). This facilitates complex multi-party trade transactions common in ASEAN supply chains.

AIFTA Registration in India offers significant trade benefits, including reduced customs duties and seamless access to ASEAN markets:

• Access to 10 ASEAN markets at reduced or zero duty
• 75% of goods at eliminated duty
• Regional Cumulation, inputs from any ASEAN country count towards RVC
• Third-party invoicing flexibility (Certificate of Origin (Form AI) can be accepted by importing country customs even when the commercial invoice is issued by a company in a third country)

To qualify for preferential tariff treatment under AIFTA, exported goods must satisfy the following Rules of Origin (ROO) criteria:

• Wholly Obtained Products: Goods entirely grown, harvested, extracted, or manufactured in India qualify directly without any additional conditions.
• Substantially Transformed Products: For goods manufactured using imported inputs, both of the following conditions must be satisfied simultaneously:
• Regional Value Content (RVC): At least 35% of the FOB value of the exported product must originate from within the ASEAN-India region — this includes inputs sourced from India or any of the 10 ASEAN member countries.
• Change in Tariff Classification (CTC): Non-originating materials used in production must have undergone a change at the 6-digit level of the Harmonised System (HS code) during manufacturing in India.

Note: A key advantage of AIFTA's RVC criterion is Regional Cumulation raw materials and components sourced from any ASEAN member country (not just India) count towards the 35% threshold. This makes qualification easier compared to purely bilateral FTAs where only domestic inputs count.

Not all goods traded between India and ASEAN qualify for preferential tariff treatment under AIFTA. Each member country including India maintains a Product Negative List (also referred to as the Sensitive List or Exclusion List) containing product categories that are specifically excluded from duty reduction under the agreement.

Key things exporters must know:

• A valid Form AI Certificate of Origin does not guarantee preferential duty at the destination if the product HS code falls on that country's Negative List
• The Negative List varies by importing country a product excluded in Indonesia may not be excluded in Vietnam
• Common categories on India's Negative List include certain agricultural products, edible oils, and sensitive manufactured goods
• Exporters must verify their specific product HS code against both India's commitments and the destination country's Negative List before applying for Form AI
• Applicants must verify the eligibility of their products on DGFT Trade Connect ePlatform before proceeding.

Check out other Free Trade Agreements India participates in to enhance trade opportunities and reduce customs duties.

The ASEAN-India Free Trade Agreement (AIFTA) has created new opportunities for businesses in both India and ASEAN countries to expand their trade relations. The registration process is relatively simple, and businesses can benefit from duty-free access and simplified customs procedures. Businesses can take advantage by obtaining the AIFTA Form AI Certificate of Origin for eligible shipments. Consult Professional Utilities to obtain AIFTA Form AI Certificate of Origin with expert guidance and support. Exporters shipping goods specifically to Vietnam can also obtain an ASEAN-India Free Trade Agreement (AIFTA) Certificate for Vietnam to comply with the applicable rules of origin and customs requirements while availing FTA benefits.