SAFTA Certificate of Origin for Exporters - Benefits, Fees & Process

SAFTA registration enables businesses to export goods under the South Asian Free Trade Area agreement, ensuring preferential trade benefits and smoother transactions. Listed below is the step-by-step process for SAFTA registration:

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

The SAFTA (South Asian Free Trade Area) License is important for businesses engaged in trade within the South Asian region. Here's why the SAFTA certificate is significant:

There are two categories of Certificate of Origin:

1. Preferential Scheme: Preferential certificates prescribe Rules of Origin which have to be met for exports to be eligible for tariff preference.
2. Non-Preferential Scheme: These Certificate of Origins evidence origin of goods and do not bestow any right to preferential tariffs.

Note: The SAFTA Certificate of Origin is a preferential certificate it is issued under the SAFTA Rules of Origin and directly determines the buyer's duty liability.

SAFTA registration facilitates businesses in obtaining a Preferential Certificate of Origin, enabling them to avail of tariff concessions and benefit from smoother customs clearance while exporting to SAARC member countries.

• Lower or zero import duties on eligible goods across 8 SAARC markets
• Faster customs clearance
• Competitive pricing advantage over non-SAFTA exporters to SAARC nations
• Covers both goods already manufactured and goods processed using originating inputs
• Facilitates smoother customs assessment of preferential tariff claims in the importing SAFTA member country.

Products must meet the following origin criteria to qualify for preferential tariff treatment under the South Asian Free Trade Area (SAFTA):

• Wholly Obtained Products: Products such as minerals extracted from soil or seabed, agricultural products wholly manufactured in the exporting SAARC country, products obtained from hunting & fishing and goods produced exclusively using the above products are considered wholly obtained and qualify directly.
• Substantially Transformed Products: For goods manufactured using imported inputs, the domestic value addition (DVA) must not be less than 40% of the FOB value of the exported product, and the final manufacturing or processing must be carried out in India. The value of non-originating materials used in production must therefore not exceed 60% of the FOB value of the finished goods. (For goods originating in SAFTA Least Developed Contracting States Afghanistan, Bangladesh, Bhutan, Maldives, and Nepal — the minimum DVA threshold is reduced to 30%.)
• Change in Tariff Heading (CTH): Where the 40% DVA threshold is not met, a product may still qualify if the manufacturing process in India results in a change in the first four digits of the Harmonised System (HS) code between the non-originating inputs and the exported finished product demonstrating substantial transformation.

Note: Product-specific rules that override the general Rule 8(a) criterion are listed in Appendix 2B of the SAFTA Rules of Origin (Indian Trade Portal). For HS codes falling under Appendix 2B, the product-specific rule takes precedence over the general twin criterion — exporters are advised to verify the applicable rule before applying for a Certificate of Origin.

In India, the authorized agencies responsible for issuing certificates of origin are clearly listed in Appendix 2B of the Handbook of Procedures (HBP) under the Foreign Trade Policy 2023. These are:

Note: For SAFTA, EIC is the sole authorized issuing agency; Chambers of Commerce are not authorized (unlike APTA).

Certain items are excluded from SAFTA tariff concessions due to their presence in the sensitive lists maintained by individual member countries

Note: Sensitive lists vary by member country. Exporters should verify the specific exclusions applicable to their destination country before applying for a SAFTA Certificate of Origin.

To qualify for preferential tariff benefits under SAFTA, exported goods must satisfy one of the following Rules of Origin criteria:

SAFTA Certificate of Origin (CoO) can be rejected by importing country customs due to several reasons including:

• Unmet Value Addition: Goods do not satisfy minimum regional value content (RVC) or local processing thresholds. HS Code mismatch may also lead to rejection.
• Incorrect Origin Criteria: Selecting wrong origin criteria code on the application form is one of the most common reasons for rejection of SAFTA certificate of origin.
• Inappropriate Evidence: Lack of supporting documents or evidence such as cost breakdowns, bills of materials or manufacturing descriptions can also lead to rejections of SAFTA Coo.

SAFTA Certificate of Origin issued by the Directorate General of Foreign Trade (DGFT) validates that the exported goods originate in SAARC member country and comply with the applicable rules of origin under the South Asian Free Trade Area (SAFTA). Professional Utilities also assist exporters in obtaining a SAFTA Certificate for Bangladesh, ensuring compliance with the applicable Rules of Origin and helping them avail of preferential tariff benefits. With more than a decade of experience we facilitate in securing SAFTA certificate of origin & enables exporters to avail reduced customs duties, improved market access, and enhanced trade opportunities while strengthening bilateral trade and economic cooperation under the SAFTA framework.