SAFTA Certificate for Afghanistan - Procedure, Documents and Fees

The South Asian Free Trade Area (SAFTA) Certificate provides Afghanistan with several economic and trade advantages. Here are the key benefits of the SAFTA Certificate for Afghanistan:

• Tariff Reductions: Afghanistan exports under SAFTA benefit from lower tax rates and, in many cases, enjoy duty-free access to SAFTA member countries, promoting regional trade agreements in South Asia.
• Boosts Exports: By participating in SAFTA trade agreements, Afghanistan expands its export opportunities, enabling local businesses to access broader markets within SAFTA member countries, thereby enhancing regional trade connectivity.
• Enhances Competitiveness: SAFTA duty-free exports allow Afghan products to be more competitively priced in regional markets, making them an attractive choice for importers in other SAFTA member countries.
• Trade Facilitation: The simplified customs procedures for SAFTA trade streamline documentation and clearance processes, reducing costs and time for Afghanistan exports under SAFTA and ensuring smoother regional trade flows.
• Increases Economic Growth: Trade agreements in South Asia like SAFTA encourage foreign investment and industrial development, boosting Afghanistan’s economic growth more effectively than traditional bilateral trade Afghanistan agreements.

The SAFTA Certificate, also known as the Certificate of Origin, is classified into two main categories:

• Preferential Scheme: Exporters must obtain a SAFTA Certificate online under the preferential scheme and comply with the Rules of Origin outlined in their certificates to qualify for tariff or tax exemptions on exported goods.
• Non-Preferential Scheme: Unlike the preferential certificate, a Non-Preferential Certificate of Origin does not provide tax reductions. Instead, it serves as proof of the product's country of manufacture.

SAFTA stands for South Asian Free Trade Area. This certificate helps an exporter get lower taxes on their goods under the SAFTA agreement, which is meant to make trade easier between SAARC countries. They serve the purpose of providing proof of the origin of the goods in order to avoid any violations of the trading rules. This is because it increases export competitiveness through the removal of taxes, improvement of market access, and promotion of economic integration among member nations.

The SAFTA registration process encompasses the subsequent stages:

• Account Creation with Organization based DSC (embedded IEC). All the data will be fetched through IEC
• Apply Online for Certificate of Origin
• Fill the form with appropriate details
• Upload the necessary documents
• Issuance of SAFTA Certificate (within 2-3 working days)

To obtain a SAFTA (South Asian Free Trade Area) Certificate, the following documents are typically required for the registration process:

• Import Export Code (IEC) Certificate
• Commercial Invoice
• Purchase Bill with details of inputs or consumables used in Export Products
• Bill of lading or Airway Bill
• Product Details along with Packing List
• Purchase Order from Importer
• Bank certificate of export realization
• Declaration of the exporter stating that the goods being exported meet the SAFTA origin criteria
• Letter of credit or contract, if applicable

Note: In the case of tea, exporters who are required to submit Certificate of Origin (Non Preferential) are to apply to the Tea Board or any Inspection Agency authorized by the Tea Board along with documents listed above.

Once items qualify as origin goods under SAFTA, the SAFTA Certificate is usually issued within 2-3 working days of shipment or export. In exceptional cases, if not granted on time, it may be issued retroactively within 45 days, clearly marked as "issued retrospectively" on the certificate.

The SAFTA registration process is a one-time process, and the certificate is valid for a year from the date of registration.