SAFTA License for Exporters of India

SAFTA Registration fees @ ₹3,208 only

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

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

Process of SAFTA License Registration

The SAFTA registration process can be completed online in just a few simple steps:

Create Account with DSC (Digital Signature Certificate)
Register your organization using DSC embedded with IEC. All details are auto-fetched from IEC.
Online Application
Log in to the DGFT portal and apply for the SAFTA Certificate of Origin.
Fill in the Form
Enter accurate exporter, product, and shipment details.
Upload Documents
Attach commercial invoice, purchase bill, and supporting documents as required.
Issuance of Certificate
Once verified, the SAFTA Certificate is issued within 2–3 working days.

Documents Required for SAFTA License Registration

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

Organization Digital Signature Certificate (embedded IEC Code)
Registered Email on DGFT
Updated IEC License
DSC software
Mobile No.
Commercial Invoice
Purchase Bill that has details of quantum/ origin of inputs/ consumables used in export products
Declaration from Manufacturer (Exporter) in Letterhead
Product Details
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.

Documents Required for SAFTA License Registration

SAFTA License Registration Fees

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.

What is SAFTA License Certificate of Origin for Exporters?

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.

Importance of SAFTA License

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:

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.

Other Free Trade Agreements

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

Authorised Agencies for Issuance of Certificate of Origin in India

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.

FAQ's on SAFTA License

What is the meaning of SAFTA certificate?

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.

What is the cost of SAFTA certificate?

The total cost for obtaining a SAFTA Certificate of Origin is ₹3,208 only, which includes:

✅ Government Fee: ₹708
✅ Application Fee: ₹2,000
✅ One-time Registration Fee: ₹500

This is a one-time registration fee valid for up to 12 months from the date of issuance.

What is the benefit of a SAFTA Certificate?

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.

How to get a SAFTA Certificate in India?

To get a SAFTA Certificate in India, follow these simple steps:

Register with the DGFT (Directorate General of Foreign Trade) through the official portal.
Obtain RCMC (Registration-cum-Membership Certificate) from an authorized export promotion council.
Apply for the certificate through a recognized issuing authority, such as an Export Inspection Agency or Chamber of Commerce.
Submit required documents including the commercial invoice, packing list, and a declaration of origin.
Pay the applicable fees (e.g., ₹3,208 for first-time registration).
Get the certificate issued, usually within 1–3 working days.

This certificate is valid for 12 months and is required for claiming tariff concessions under the SAFTA agreement.

What are Rules of Origin (ROO)?

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:

to implement measures and instruments of commercial policy such as antidumping duties and safeguard measures;
to determine whether imported products shall receive most-favored-nation (MFN) treatment or preferential treatment;
for the purpose of trade statistics;
for the application of labeling and marking requirements; and
for government procurement.

What are some of the criteria used in the (RoO) rules of origin?

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 :-

change in tariff class (this could be at the tariff chapter, tariff heading or tariff sub heading level)
regional value addition
substantial processing or manufacturing by excluding some minimal operations.

What are the four methods of supply under trade in services?

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.