Updated on August 02, 2025 02:42:54 PM
SAPTA full form is SAARC Preferential Trading Arrangement. SAPTA Certificate is required to claim benefits of Free Trade Agreements (FTA) to the importing country, and it is an important document that has to be produced at the landing port along with commercial invoices. A Certificate of Origin (COO), duly registered with (issued by) the Directorate General of Foreign Trade (DGFT), has to be provided by the exporter to ensure that the goods are being produced from countries under the trading agreement.
The objective of SAPTA is to ensure optimum economic cooperation between the member countries through the exchange of trade benefits and concessions, fostering economic growth. SAPTA Registration is a crucial first step to promote and assist mutual trade towards higher levels of trade and economic cooperation in the SAARC countries. The agreement on preferential arrangements among the seven member countries of the SAARC, namely Bangladesh, Bhutan, Nepal, India, Pakistan, the Maldives, and Sri Lanka, was executed in Dhaka in 1993, marking a significant milestone in regional economic collaboration.
SAPTA Registration [SAMPLE]
The process of acquiring a SAPTA certificate under the South Asian Preferential Trading Arrangement (SAPTA) is known as SAPTA registration. Members of SAARC, including India, Bangladesh, Nepal, Bhutan, Sri Lanka, the Maldives, and Pakistan, are eligible for preferential tariff concessions on trade under this agreement.
As proof of origin, the SAPTA certificate attests to the fact that the exported goods are produced in a member nation and are therefore eligible for the agreement's preferential tariff benefits. Products become more competitive in regional trade markets as a result of the buyer in the destination country paying lower import duties.
To obtain SAPTA registration, an exporter must apply through the designated authority, submit required documents such as commercial invoices, packing lists, and a declaration of origin. To claim tariff benefits, the shipment must be accompanied by the SAPTA certificate, which is issued upon approval.
Exporters can improve their market presence in South Asia, lower importers' costs, and increase trade opportunities by obtaining SAPTA registration. Businesses engaged in textiles, agriculture, handicrafts, and other commodities traded within the SAARC region will particularly benefit from this certification.
The documents required for SAPTA (South Asian Preferential Trading Arrangement) Registration typically include the following:
The SAARC Preferential Trading Arrangement (SAPTA) registration process involves obtaining certification to avail preferential tariff benefits under the SAPTA agreement. Below is a general procedure for SAPTA registration:
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 |
The SAPTA registration fee in India is ₹3,500, which includes a ₹2,000 ID creation fee and a ₹1,500 certificate generation fee per invoice, which is mandatory for all applicants applying.
Particulars | Fees |
---|---|
ID Creation Fee | ₹2,000 |
Certificate generation per Invoice | ₹1,500 |
Total Fees | ₹3,500 |
Note: 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
SAFTA - South Asia Free 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
Conclusion
SAPTA Registration under the SAARC Preferential Trading Arrangement allows exporters to claim preferential tariff rates between the SAARC member countries that include Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka. It encourages regional economic integration and development inasmuch as it provides for mutual trading by way of concessions. To approve the origin of the goods under the agreement, exporters are required to secure a COO from the DGFT. During registration, necessary documents have to be submitted so that SAPTA requirements can be fulfilled. By raising the level of trade effectiveness, SAPTA also brings economic value to participating businesses and economies in the member countries and supports cooperation and integration of the economies.
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 SAPTA Certificate is an official document that certifies the origin of goods being exported under the South Asian Preferential Trade Arrangement (SAPTA). It allows exporters from India to claim preferential tariff benefits when trading with other SAARC countries like Nepal, Bhutan, Bangladesh, Sri Lanka, and others.
This certificate helps reduce import duties for the buyer in the destination country, making your product more competitive in the international market.
The total cost of obtaining a SAPTA Certificate is ₹3,500, which includes:
This fee covers registration and issuance of the certificate required for claiming trade benefits under the SAPTA agreement.
India has preferential access, economic cooperation and Free Trade Agreements (FTA) with about 54 individual countries. India has signed bilateral trade deals in the form of Comprehensive Economic Cooperation Agreement (CECA) / Comprehensive Economic Partnership Agreement (CEPA) / Free Trade Agreement / Preferential Trade Agreements (PTAs) with some 18 countries. India is a late & cautious, starter in concluding comprehensive PTA covering substantially all trade with some of its trading partners.
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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