SAFTA (South Asian Free Trade Area)

SAFTA is a preferential trade agreement among SAARC nations (India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives, and Afghanistan). The SAFTA Certificate of Origin is an official document that certifies goods being exported from India were produced or manufactured in India, allowing them to qualify for lower or zero customs duties in the destination country.

It is required whenever an Indian exporter wants to claim preferential tariff (duty) benefits for shipments sent to other SAARC member countries. It is necessary for:

• Customs Clearance: To prove the origin of goods to the importing country's customs.

• Cost Savings: To reduce the landing cost of products, making them more competitive in the South Asian market.

• Bilateral Compliance: When the buyer specifically requests a preferential Certificate of Origin as per the trade agreement.

Required Documents

• Digital Signature Certificate (DSC): Organization-based DSC with the IEC embedded.

• Import Export Code (IEC): Updated and linked with the DGFT portal.

• Commercial Invoice & Packing List: Detailing the products, quantity, and value.

• Manufacturer's Declaration: A declaration on company letterhead confirming the goods meet the "Rules of Origin" (local content requirements).

• Purchase Order: From the foreign buyer in the SAARC member country.

• Cost Statement: (If required) To prove the percentage of local value addition in the manufacturing process.