AFTA (ASEAN-India Free Trade Area)

AFTA (specifically the ASEAN-India Free Trade Area or AIFTA) is a trade agreement between India and the ten member states of ASEAN (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam). The AIFTA Certificate of Origin (Form AI) is an official document certifying that goods exported from India meet specific "Rules of Origin," allowing them to enter ASEAN markets at significantly reduced or zero customs duties.

It is required when an Indian exporter wants to claim preferential tariff treatment (lower import taxes) for shipments sent to any of the ten ASEAN countries. It is necessary for:

• Duty Concessions: Reducing the cost for the foreign buyer, making Indian goods more competitive.

• Customs Clearance: Proving to ASEAN customs authorities that the product qualifies as "Indian" under the agreement's value-addition rules (typically minimum 35% local content).

• Shipping Compliance: When the contract or Letter of Credit specifically demands a "Form AI" for the consignment.

Required Documents

• Active IEC: Your Import-Export Code must be updated and linked to the DGFT portal.

• Commercial Invoice & Packing List: Detailing the description, weight, and value of the goods.

• Shipping Bill / Bill of Lading: To confirm the port of discharge and transport details.

• Cost Statement: To prove that at least 35% of the product's value was added in India (if using non-originating materials).

• Manufacturer's Declaration: A self-certified statement on company letterhead confirming that the products meet the AIFTA origin criteria.

• Purchase Order: A copy of the order or contract from the buyer in the ASEAN country.