What is SAFTA?

• SAFTA stands for South Asian Free Trade Area.

• It is a trade agreement signed among SAARC nations to encourage regional trade and economic cooperation.

• The agreement came into effect in January 2006.

• It focuses on eliminating tariffs and non-tariff barriers among member countries.

• It promotes a gradual move towards a free trade area in South Asia.

What is a SAFTA Certificate?

• A SAFTA Certificate of Origin is an official document verifying that the goods are produced or manufactured in a SAFTA member country.

• It enables exporters to claim preferential tariff treatment when exporting to other SAFTA countries.

• The certificate is mandatory to avail of the benefits of reduced or zero customs duties under the SAFTA agreement.

• It is issued by designated government-authorized bodies in the exporting country.

• The certificate is consignment-specific and must accompany the shipment.

SAFTA Member Countries

• Afghanistan

• Bangladesh

• Bhutan

• India

• Maldives

• Nepal

• Pakistan

• Sri Lanka

Objective of SAFTA

• To increase intra-regional trade among SAARC countries.

• To promote equitable development across South Asia.

• To simplify and harmonize trade procedures and regulations.

• To eliminate trade barriers and reduce customs duties.

• To strengthen regional integration and cooperation.

Products Eligible Under SAFTA

• Only goods that are either wholly obtained or sufficiently processed in a SAFTA country are eligible.

• Common eligible products include:

  • Agricultural produce

  • Textiles and garments

  • Processed food products

  • Leather goods

  • Engineering and electronic goods

  • Pharmaceuticals and chemicals

• Products on the importing country’s sensitive list are excluded from tariff concessions.

• Exporters must verify product eligibility before applying for the certificate.

Key Features of SAFTA Certificate

• Issued in a standardized format recognized across SAFTA countries.

• Valid only for one consignment (single-use).

• Certifies compliance with SAFTA Rules of Origin.

• Required at customs in the importing country to claim duty benefits.

• Issued by authorities such as FIEO, Chambers of Commerce, or EPCs.

• Hard copy is signed, stamped, and must accompany the shipment.

Documents Required for SAFTA Certificate

• Duly filled application form for SAFTA Certificate of Origin.

• Commercial Invoice of the goods to be exported.

• Packing List showing product details and quantity.

• Bill of Lading or Airway Bill as proof of shipment.

• Self-declaration by the exporter regarding origin.

• Manufacturing process details and value addition proof.

• Product-wise cost sheet showing local input percentages.

• Industrial license or MSME/Udyam certificate, if applicable.

• Export Order or Purchase Order from foreign buyer.

• GST registration certificate of the exporter.

• Letter of authority if a third party is applying on behalf of the exporter.

Eligibility Criteria – Rules of Origin

• Goods must be either wholly obtained or substantially transformed in the exporting country.

• Minimum 40% value addition is required (30% for LDCs like Nepal or Bangladesh).

• Change in Tariff Heading (CTH) is mandatory at the 4-digit HS code level.

• The origin must be supported with manufacturing records and cost sheets.

• Mixed-origin goods must meet transformation and value addition norms to qualify.

How to Apply for SAFTA Certificate

1. Confirm the product is eligible and not on the sensitive list.

2. Prepare the required documents, including cost sheets and declarations.

3. Fill in the prescribed application form (manual or online).

4. Submit to the authorized issuing agency (e.g., FIEO, Chamber of Commerce).

5. Pay the prescribed application or processing fee.

6. The authority will verify the documents and origin compliance.

7. Upon approval, the SAFTA Certificate is issued and stamped.

8. Attach the original certificate with export documents for customs clearance.

Example Use Case

• An Indian exporter of processed spices receives an order from a Bangladeshi importer.

• The product is not on Bangladesh’s sensitive list.

• The exporter confirms over 45% local content and change in tariff heading.

• Applies for SAFTA Certificate through the authorized Chamber of Commerce.

• Certificate is issued and sent with the consignment.

• Customs in Bangladesh verify the certificate and apply reduced duty as per SAFTA.

Legal Framework & Compliance

• Governed by the SAFTA Agreement signed by SAARC countries.

• In India, it is implemented via DGFT’s Handbook of Procedures and Customs notifications.

• Exporters must comply with Rules of Origin and maintain proper supporting records.

• Any misrepresentation can lead to penalties, disqualification, or legal action.

• Exporters should retain copies of the certificate and related documentation for audits.

Benefits of SAFTA for Indian Exporters

• Enables duty-free or low-duty access to regional markets.

• Reduces cost burden on importers, increasing competitiveness of Indian products.

• Encourages exporters to expand into neighboring countries.

• Helps small and medium enterprises explore regional opportunities.

• Improves trade efficiency with simplified customs clearance under SAFTA.

Why Choose YKG Global for SAFTA Certification

• Expertise in preparing and reviewing export documentation.

• Assistance in determining product eligibility and rules of origin compliance.

• Support in preparing value addition calculations and cost sheets.

• Coordination with issuing agencies to ensure timely certification.

• Advisory on other Free Trade Agreements (FTAs) and trade documentation.

• End-to-end service from documentation to post-issuance export compliance.