Updated on August 02, 2025 10:40:25 AM
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. Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka constitute the member nations of SAFTA.
As SAFTA comes up with many tax benefits for exporters in India.The South Asian Free Trade Agreement (SAFTA) is a significant certification demanded by merchant exporters engaged in international trade within the South Asian region. This agreement aims to promote regional economic cooperation and integration among the member countries.
SAFTA operates on the principle of preferential tariffs, allowing member countries to trade goods and services at reduced or eliminated customs duties, thereby facilitating seamless and cost-effective cross-border trade. By eliminating tariffs and other trade barriers, SAFTA provides various tax benefits for exporters in India. Read to know the importance, requirements, and process of SAFTA registration.
SAFTA Certificate Sample
South Asian Free Trade Area (SAFTA) agreement, the SAFTA License Certificate of Origin is an essential document. It acts as evidence that the exported goods are made in a member nation, qualifying them for preferential tariff treatment among SAFTA countries. This certificate facilitates smoother trade relations within the region by enabling exporters to claim reduced or zero import duties in participating nations.
India, Pakistan, Nepal, Bhutan, Bangladesh, Maldives, Sri Lanka, and Afghanistan are among the nations that are part of SAFTA. By presenting a valid SAFTA Certificate of Origin at the time of export, exporters from these nations can drastically lower their trade costs.
Businesses must adhere to the regulations set forth by their respective government agencies, submit the required paperwork, and make sure the goods fulfill the SAFTA rules of origin requirements in order to receive the certificate. This boosts economic cooperation among South Asian countries and increases trade competitiveness.
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:
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.
To obtain a SAFTA (South Asian Free Trade Area) License, 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 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 Certificate of Origin, exporters must pay a fixed registration fee. Below is the detailed breakup of the total charges applicable for SAFTA certificate issuance :
| SAFTA Registration | Cost |
|---|---|
| Government Fee | ₹708 |
| One-time registration fee | ₹500 |
| Application Fee | ₹2000 |
| Total SAFTA Fees | ₹3,208 Only |
Note: SAFTA Certificate has to be issued for each invoice & The aforementioned Fees is exclusive of GST.
India has enhanced its market access commitments for neighbouring service providers. These commitments provide companies with an opportunity to build market expertise and grow by international expansion. Under Free or Preferential Trade Agreement there are multiple options where certificate of origin can be generated from India for import benefits to importing companies:
ICPTA - India Chile Preferential 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
In India, the authorized agencies responsible for issuing certificates of origin are clearly listed in Appendix 35 of the Handbook of Procedures, Volume-1, as per the Foreign Trade Policy. These are:
| Agreement | Agencies authorized to issue Certificate of Origin |
|---|---|
| Asia Pacific Trade Agreement (APTA) | Export Inspection Council (EIC); Export Development Authorities; Development Commissioners of EPZs and SEZs; FIEO |
| Global System of Trade Preferences (GSTP) | EIC for all products; Tobacco Board, Guntur for tobacco and tobacco products |
| India Afghanistan PTA | EIC |
| India ASEAN Trade in Goods Agreement | EIC |
| India Chile PTA | EIC |
| India JAPAN CEPA | EIC |
| India Mercosur PTA | EIC |
| India Singapore CECA | EIC |
| India South Korea CEPA | EIC |
| South Asian Free Trade Agreement (SAFTA) | EIC |
Conclusion
The Safta certificate helps exporters to get a preferential treatment and avail many benefits such as less or no custom duties on products listed under SAFTA agreement. Safta also works as "Certificate of origin" for products which helps gain trust in export market overseas. Therefore exporters are professionally advised to obtain SAFTA certificate for their business in India.
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.
A SAFTA Certificate is an official document that proves goods being exported are made in a member country of the South Asian Free Trade Area (SAFTA). It allows exporters to claim reduced or zero import duties when trading with other SAFTA countries like Nepal, Bangladesh, Sri Lanka, Bhutan, and others. This helps promote easier and more affordable trade between South Asian nations.
The total cost for obtaining a SAFTA Certificate of Origin is ₹3,208 only, which includes:
This is a one-time registration fee valid for up to 12 months from the date of issuance.
A SAFTA Certificate allows exporters to enjoy reduced or zero import duties when trading with other SAFTA member countries like Bangladesh, Nepal, Bhutan, Sri Lanka, and more. It helps make Indian goods more competitive and affordable in South Asian markets by offering preferential tariff benefits under the SAFTA trade agreement.
To get a SAFTA Certificate in India, follow these simple steps:
This certificate is valid for 12 months and is required for claiming tariff concessions under the SAFTA agreement.
Country of origin / Rules of origin (ROO) are the criteria
needed to
determine a product for purposes of international trade. Their significance
is
derived from the fact that duties & restrictions in several cases depend
upon the
source of imports.
Rules of origin are used:
The criteria in the (RoO) rules of origin sets out specific & detailed conditions on the level of processing that an imported item from a non Free Trade Agreement partner country must undergo in the Free Trade Agreement partner country (or other eligible countries in the region) before being eligible to be called an originating product of a Free Trade Agreement partner country. Some of the common standards used are :-
The four methods of supply –
Method 1: Cross border supply (supply from the territory of a Party into the territory of the other Party). For Instance an architect can send his architectural plan through electronic means; a lecturer can send teaching material to students in any other country; a doctor sitting in France can advise his patient in India through digital means. In all these cases, trade in services takes place and this is equal to cross-border movement of goods.
Method 2: Consumption abroad ( consumption in the territory of a Party by the service consumer of the other Party). For Instance a tourist using hotel or restaurant services abroad; a ship or aircraft undergoing repair or maintenance services abroad.
Method 3: Commercial presence (by a service supplier of a Party, through commercial presence in the territory of the other Party). In this case, the service supplier establishes a legal presence in the form of a representative / branch office / joint venture / subsidiary in the host country & starts supplying services. For Instance a bank opens its branch in another country.
Method 4: Presence/movement of natural persons (by a service supplier of a Party, through presence of natural persons of a Party in the territory of the other Party). For Instance Independent service suppliers (e.g. doctors, engineers, individual consultants, accountants, etc.) who provide services in another country. However, GATS covers only temporary movement & not citizenship, residence or employment on a permanent basis in the foreign country.
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