SAPTA License Registration - Certificate of Origin for Exporters
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 must be produced at the landing port along with commercial invoices. The agreement on Preferential Trade Arrangement among the 7 SAARC member countries was signed on 11 April 1993 in Dhaka and entered into force on 7 December 1995. SAPTA covers arrangements relating to tariffs, para-tariffs, non-tariff measures, and direct trade measures, and is subject to periodic review and renegotiation in successive stages The exporter must obtain a Certificate of Origin (COO) issued by the Directorate General of Foreign Trade (DGFT) to certify that the goods originate in the exporting country and satisfy the applicable Rules of Origin under SAPTA.
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 and implemented in 1995, marking a significant milestone in regional economic collaboration.
SAPTA Registration [SAMPLE]
Process for SAPTA Registration
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:
- 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 SAPTA Certificate (within 2-3 working days)
Documents required for SAPTA Registration
The documents required for SAPTA (South Asian Preferential Trading Arrangement) Registration typically include the following:
- Import Export Code
- Registration Certificate of Organization
- GST Registration Certificate
- Address ID Proof with Detail of each director/Partner/Proprietor
- Exporter detail
- Commercial Invoice
- Organization based Digital signature Certificate
- Purchase Bill that has details of origin of inputs/consumables used in export products
- Declaration from Manufacturer (Exporter) in Letterhead
- Product Details
- Purchase order from importer
Fees for SAPTA Registration
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:
| 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.
What is SAPTA Registration?
The process of acquiring a SAPTA certificate under the South Asian Preferential Trading Arrangement (SAPTA) is known as SAPTA registration. Members of SAARC, including Bangladesh, Bhutan, Nepal, India, Pakistan, the Maldives and Sri Lanka are eligible for preferential tariff concessions on trade under this agreement. SAPTA consists of seven original SAARC member countries. Afghanistan joined the South Asian Free Trade Area (SAFTA) in 2011 as the eighth member but is not a part of the original SAPTA arrangement
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 due to 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.
Key Principles of the SAPTA Agreement
SAPTA Agreement operates on 4 key principles that govern trade relations among the SAARC member states:
- Overall Reciprocity and Mutuality: The SAPTA Agreement ensures that trade benefits and concessions are equitably distributed among all participating countries, with due consideration for their respective levels of economic and industrial development.
- Stepwise Negotiations with Periodic Reviews: SAPTA is designed to be negotiated and improved in successive stages. The agreement provides for periodic reviews to expand the scope of concessions and progressively deepen trade liberalization among the contracting states.
- Recognition of Least Developed Contracting States: The special needs of least developed contracting member countries must be recognized, and preferential measures should be taken in their favour within the framework of the agreement.
- Comprehensive Product Coverage: SAPTA covers all products, including manufacturers and commodities in their raw, semi-processed, and processed forms, ensuring broad applicability across sectors.
Authorized Agencies in India for Issuing Certificates of Origin
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 |
| SAARC Preferential Trading Arrangement (SAPTA) | 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 |
Benefits of SAPTA Registration
SAPTA Certificate of Origin allows exporters to avail preferential tariff benefits including reduced or zero customs duty, when exporting eligible goods to SAPTA member countries.
- Reduced or zero duty on eligible goods exported to Bangladesh, Bhutan, Nepal, Pakistan, Maldives, and Sri Lanka
- Competitive pricing advantage over exporters from non- SAARC countries
- A single preferential tariff arrangement with access to six SAARC markets
- Beneficial for sectors such as textiles, agricultural products and handicrafts traded within the SAARC region
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
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
Get Expert Assistance for SAPTA Certificate Registration
SAPTA Registration under the SAARC Preferential Trading Arrangement allows exporters to claim preferential tariff rates between the SAARC member countries which includes Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka. It encourages regional economic integration and development and facilitates in mutual trading by reducing duty on eligible goods exported to member countries. 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. Professional Utilities with more than a decade of experience also assist businesses in obtaining AIFTA Registration Certificate to unlock additional benefits under the ASEAN-India Free Trade Agreement and expand their trade potential across ASEAN markets.
FAQ's on SAPTA Registration
What is a SAPTA Certificate?
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.
What is the cost of a SAPTA Certificate?
The total cost of obtaining a SAPTA Certificate is ₹3,500, which includes:
- ID Creation Fee - ₹2,000
- Certificate Fee (per invoice) - ₹1,500
This fee covers registration and issuance of the certificate required for claiming trade benefits under the SAPTA agreement.
How is India placed globally in terms of its bilateral FTAs/PTAs/
CEPAs/CECAs
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.
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.
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