Updated on May 06, 2025 02:36:56 PM
The SAFTA Certificate for Bhutan is a very important certificate that accredits Bhutanese exporters so that they can benefit from the SAFTA for the export of goods and services to partner countries. This Free Trade Agreement is signed between the eight member countries of the South Asian Association for Regional Cooperation (SAARC) namely Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka, to enhance regional integration and trade liberalization. The agreement is especially beneficial for Bhutan as it helps in increasing cross-border trade, and exports and promoting regional integration.
When obtaining the SAFTA Certificate for Bhutan, the parties involved can significantly reduce the customs duties and get lower taxes for exports in the SAARC countries. To take advantage of these SAFTA tariff preferences for Bhutan, goods must meet the SAFTA Rules of Origin Bhutan stipulates that the products in question originate from Bhutan. When applied to export goods, it also assists in the pursuit of the SAFTA agreements to improve the export of Bhutanese products in the regional markets, hence improving the economic development of the country.
Overall, the SAFTA trade agreement that Bhutan has signed has a positive effect on the trade dynamics. These advantages of trading under SAFTA do not only imply cheaper goods, but better countries’ access, better business relations, and new opportunities for diversification. Below is the detailed information about the SAFTA Certificate for Bhutan, including how to apply, its benefits, and its contribution towards increasing the geographical trade of Bhutan.
A SAFTA Certificate is granted under the SAFTA agreement, and under this agreement, the members of SAARC can have preferential tariff rates. This certificate ensures that the exported goods produced in SAARC countries (for instance India, Bangladesh, Nepal, and so on) can be certified as originating from such a country, hence taking advantage of free or reduced tax in the destined country. The SAFTA Certificate of Origin is issued for facilitation by the authorized agencies, which check and confirm that the goods fulfill the rules of origin criteria, and also provide incentives in terms of trade liberalization of the region, competitiveness, and reduction of cost. It also has a very significant role in facilitating economic integration and trade of the SAFTA member countries.
The South Asian Free Trade Area (SAFTA) Certificate provides Bhutan with several economic and trade advantages. Here are the key benefits of the SAFTA Certificate for Bhutan:
The SAFTA Certificate, also known as the Certificate of Origin, is classified into two main categories:
The SAFTA (South Asian Free Trade Area) Certificate allows an exporter to qualify for tariff preferences under the SAFTA agreement to boost goods trade among SAARC nations. It acts as proof that the goods are produced and exported from a specific country and meet the legal requirements required by a certain country. This aids its members by cutting trade barriers through the lessening of duties, increasing access to the global market, and giving support to member countries to forge stronger economic relations.
The SAFTA registration process encompasses the subsequent stages:
To obtain a SAFTA (South Asian Free Trade Area) Certificate, the following documents are typically required for the registration process:
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.
The total cost for SAFTA registration is ₹6,235, covering a ₹736 government fee, ₹500 one-time registration fee, ₹2,000 application fee, and ₹2,999 professional fee, ensuring a smooth registration process. Below is the detailed structure:
| Particulars | Cost |
|---|---|
| Government fee | 736 |
| One-time registration fee | 500 |
| Application fee | 2,000 |
| Professional fee | 2,999 |
| Total cost of registration | 6,235 |
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.
Conclusion
Obtaining a SAFTA Certificate for Bhutan is crucial for those exporters who require preferential tariffs under the South Asian Free Trade Agreement. This certificate helps minimize or exempt customs duties, integrate trade formalities, and increase the export competence of Bhutanese products in all SAARC countries. The low cost of the application, liberal fee structure, and great economic benefits associated with the SAFTA Certificate, therefore, make the tool a welcome addition to the development of trade and market access in the respective regions. To derive maximum benefits from international trade and cooperative partnerships, the exporters present in Bhutan should ensure they follow all the aspects of the SAFTA Rules of Origin.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
Frequently Asked Questions (FAQs)
You can apply through India’s Directorate General of Foreign Trade (DGFT) or authorized agencies by submitting export documents, invoice, and proof of origin.
Authorized agencies like Export Inspection Council (EIC), DGFT, and Chambers of Commerce issue SAFTA Certificates of Origin in India for eligible exporters.
The SAFTA Certificate of Origin generally costs between ₹500 to ₹1,000 per certificate, depending on the issuing agency and required documentation services.
SAFTA certificates are issued by member countries: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka for intra-regional preferential trade.
Exporters apply through DGFT online platform or designated agencies by submitting relevant export documents, invoice, and declaration for issuance of Certificate of Origin.
SAFTA rules specify tariff reduction schedules, rules of origin, safeguard measures, and dispute resolution among member countries to promote regional trade and cooperation.
Myanmar is not a SAFTA member. It is part of ASEAN, not SAARC, which includes Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka.
Misuse occurs when exporters falsely declare origin, re-route goods through member countries to exploit tariff concessions, or violate rules of origin and certification procedures.
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