SAFTA License - Certificate of Origin for Exporters of India
Updated on October 16, 2021 01:37:41 PM
SAFTA License is a certificate of origin issued by DGFT for importers and exporters of India. SAFTA certificate is added to the commercial invoice to show the country of origin of goods.
SAFTA stands for South Asian Free Trade Area and includes multiple countries - Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka. Read to know the importance, requirements, and process of SAFTA registration.
It is mandatory for importers and exporters to add the Certificate of Origin to the commercial invoice to avoid any shipment problems. Certificate of Origin is an instrument which establishes evidence of origin of goods imported into any country.
These certificates are essential for exporters to prove where their goods come from and therefore stake their claim to whatever benefits goods of Indian origin (Make in India) may be eligible for in the country of exports.
There are tax exemption benefits also if the exporter has a SAFTA License. Most exporters don’t need to charge GST in their bill or invoice if they have attached the certificate of origin.
This gives a boost in sales and preference to the exporter holding SAFTA certificate. If the exporter doesn't charge GST on export of goods, then the importer will have to pay a lesser price. The importer will prefer an exporter who charges “Base Price + No Tax”.
Categories of Certificate of Origin
There are two categories of Certificate of Origin:
Preferential Scheme: Preferential certificates prescribe Rules of Origin which have to be met for exports to be eligible for tariff preference.
Non-Preferential Scheme: These Certificate of Origins evidence origin of goods and do not bestow any right to preferential tariffs.
Purchase Bill that has details of quantum/origin of inputs/consumables used in export products
Declaration from Manufacturer (Exporter) in Letterhead
Purchase order from importer
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.
Procedure of SAFTA Registration
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)