India and the Association of Southeast Asian Nations (ASEAN) signed the India-ASEAN Free Trade Agreement, commonly called by its ASEAN-India Free Trade Agreement full form AIFTA, to improve the integration of the economies of the two regions. This agreement was signed in August 2009, and its implementation was effective from January 1, 2010, which was a major achievement in the Look East Policy of India and the engagement with the economies of Southeast Asia.
As per the AIFTA agreement, both Indian and ASEAN member countries have been able to scale down or abolish certain customs duties on a large number of commodities, allowing exporters to enter their markets with preferential tariffs on exports. However, exporters have to apply for the AIFTA certificate (Certificate of Origin), also known as Rules of Origin, after satisfying all the stipulated Rules of Origin as per the agreement rules. The AIFTA agreement also comprises Product Negative Lists and Dispute Settlement Mechanisms
Today, the agreement has expanded its scope to trade in services and investment cooperation, further reinforcing the long-term economic relationship between India and ASEAN. Therefore, Indian exporters of agriculture, textiles, pharmaceuticals, automobile components, engineering goods, and IT services enjoy better market access, and ASEAN member states enjoy better access to the Indian market, thus fostering mutual growth and regional economic development.
AIFTA Certificate [Sample]
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.
On the other hand, 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.
AIFTA Registration in India offers significant trade benefits, including reduced customs duties and seamless access to ASEAN markets.
The ASEAN-India Free Trade Area (AIFTA) is a free trade agreement between India and the Association of Southeast Asian Nations (ASEAN). The AIFTA was signed in 2009 and entered into force in 2010. The agreement eliminates or reduces customs duties on a wide range of goods traded between India and ASEAN. This has made Indian products more competitive in the ASEAN market, and vice versa. The AIFTA has also led to increased trade and investment between India and ASEAN.
The AIFTA also streamlines customs procedures for both countries' exporters and importers. The agreement expedites the clearance of goods at the border, reducing the time and cost of trade.
The AIFTA includes provisions for the protection of intellectual property rights of the businesses of both countries. This provides a secure environment for innovation and creativity and encourages investment in research and development.
Here’s a complete list of documents you need to submit for India-ASEAN Free Trade Agreement (AIFTA) Registration.
The fee for ASEAN-India free trade agreement are as follows:
| Particulars | Cost of AIFTA Registration |
|---|---|
| Government Fee | ₹736 |
| One time registration fee | ₹500 |
| Application fee | ₹2000 |
| Total cost of registration | INR 3,236/- only |
Note: SAFTA Certificate has to be issued for each invoice & The aforementioned Fees is exclusive of GST.
Learn the complete step-by-step process to obtain your India-ASEAN Free Trade Agreement (AIFTA) Certificate of Origin and export smoothly.
Check out other Free Trade Agreements India participates in to enhance trade opportunities and reduce customs duties.
ICPTA - India Chile Preferential Trade Agreement
SAFTA - South Asia Free Trade Agreement
SAPTA - SAARC Preferential Trade Agreement
IKCEPA - India Korea Comprehensive Economic Partnership Agreement
IJCEPA - India Japan Comprehensive Economic Partnership Agreements
AIFTA - ASEAN India Free Trade Agreement
ISFTA - India Sri Lanka Free Trade Agreement
APTA - Asia Pacific Trade Agreement
GSP - Generalized System of Preferences
GSTP - Global System of Trade Preferences
IMCECA - India Malaysia Comprehensive Economic Cooperation Agreement
ISCECA - India Singapore Comprehensive Economic Cooperation Agreement
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, simplified customs procedures, and protection of intellectual property rights. Businesses can take advantage of the AIFTA by registering their business under AIFTA certification.
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AIFTA stands for the ASEAN India Free Trade Agreement, which facilitates the preferential duty benefits for the list of qualifying goods moving between India and the member states of the ASEAN nations.
The certificate applied for by India under the AIFTA agreement is an online process, where the required documents for export are submitted through the relevant issuing authority for the preferred tariff treatment.
Under the Indian regime, the AIFTA Certificate of Origin is granted by authorized organizations notified by the Government of India, for example, the export promoting organizations and the designated chambers.
The AIFTA offers advantages including reduced or waived customs duty, simplified customs formalities, improved market access, and increased trade competitiveness.
The India–New Zealand Free Trade Agreement (FTA) is a proposed bilateral trade agreement aimed at reducing tariffs, improving market access, and strengthening economic cooperation between India and New Zealand. It is important for exporters, importers, and investors as it can lower trade costs, boost bilateral trade, and create new business opportunities. Detailed insights and updates are available at India–New Zealand Free Trade Agreement (FTA).
The India–UK Free Trade Agreement (FTA) is a trade pact aimed at reducing tariffs, improving market access, and strengthening economic cooperation between India and the United Kingdom. It benefits exporters, importers, and service providers by simplifying trade rules. Detailed insights are available at India–UK Free Trade Agreement (FTA).