India-ASEAN Free Trade Agreement | AIFTA Certificate of Origin
India-ASEAN Free Trade Agreement | AIFTA Certificate of Origin
AIFTA, ASEAN – India Free Trade Agreement is a framework on comprehensive economic cooperation which includes goods, services and also investment. Under AIFTA exporters can obtain preferential certificate under AIFTA. The Certificate of origin (Coo) is issued by director general of foreign trade (DGFT) in India. Therefore it is beneficial for exporter and traders of goods and services to obtain AIFTA registration/certificate of origin for their products under the guidelines if ASEAN-India free trade agreement.
Table of Content
- What is AIFTA Certificate of Origin
- Benefits of AIFTA Registration
- Documents Required for AIFTA Certificate
- What is the Fee For AIFTA Certificate
- Process For AIFTA Certification
- Conclusion
- Frequently Asked Questions (FAQs)
AIFTA Certificate of Origin
The ASEAN-India Free Trade Agreement (AIFTA) enables the import and export of certain goods between India and ASEAN countries at preferential rates of duty. To claim these preferential rates, exporters must obtain a Certificate of Origin (COO) that verifies that their goods meet the origin criteria specified in the agreement.
There are two types of schemes associated with the AIFTA COO: preferential and non-preferential schemes.
Under the preferential scheme, eligible goods exported to ASEAN countries attract lower or zero tariff rates. The AIFTA COO is required to claim these preferential rates.
On the other hand, the non-preferential scheme applies to goods traded between India and ASEAN countries that are not covered under the preferential scheme. The non-preferential scheme is mainly used for statistical purposes and to enforce trade regulations. In such cases, a COO is also required, but it is not needed to claim preferential tariff rates.
Benefits of AIFTA
Prior to delving into the registration process, let us examine the advantages of the AIFTA. The agreement provides the following benefits to Indian businesses:
Duty-Free Access :
The ASEAN-India Free Trade Area (AIFTA) is a free trade agreement between India and the Association of Southeast Asian Nations (ASEAN). The AIFTA was signed in 2009 and entered into force in 2010. The agreement eliminates or reduces customs duties on a wide range of goods traded between India and ASEAN. This has made Indian products more competitive in the ASEAN market, and vice versa. The AIFTA has also led to increased trade and investment between India and ASEAN.
Simplified Customs Procedures :
The AIFTA also streamlines customs procedures for both countries’ exporters and importers. The agreement expedites the clearance of goods at the border, reducing the time and cost of trade.
Protection of Intellectual Property Rights
The AIFTA includes provisions for the protection of intellectual property rights of the businesses of both countries. This provides a secure environment for innovation and creativity and encourages investment in research and development.
Documents required for AIFTA registration
- Organization DSC
- IEC code certificate
- Registered email on DGFT
- Mobile no
- Commercial Invoice
- Purchase bill that has details of quantum and origin of product
- Declaration from manufacturer exporter
- Product detail
- Purchase order from importer of the product
Fee for AIFTA
The fee for ASEAN-India free trade agreement are as follows:
| Particulars | Fees |
|---|---|
| Government Fee | ₹ 736 |
| Application Fee | ₹ 2000 |
| One time registration fee | ₹ 500 |
| Total cost of registration | ₹ 3,236/- only |
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Rregistration Process For AIFTA
To avail the benefits of the AIFTA, businesses need to register themselves with the respective authorities of India and ASEAN Countries. The following are the steps involved in the registration process:
Online application:- Provide all the related documents such as billing details to proceed with the online application.
Filling up the form:- Once all the documents and details are collected, we will fill for the AIFTA registration with respective authorities.
Upload documents:- Once the application is filled upload all the necessary documents
Issuance of Certificate:- The certificate of origin will be issued
Conclusion
The ASEAN-India Free Trade Agreement (AIFTA) has created new opportunities for businesses in both India and ASEAN countries to expand their trade relations. The registration process is relatively simple, and businesses can benefit from duty-free access, simplified customs procedures, and protection of intellectual property rights. Businesses can take advantage of the AIFTA by registering their business under AIFTA certification.
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Frequently Asked Questions (FAQs)
Although having an AIFTA is not necessary for exporters of goods from India, AIFTA comes with many benefits such as low or zero tariff rate under preferential scheme for a variety of goods. Which can help exporters in the growth of their business.
The fee for india srilanka certificate of origin is ₹3,236 only.
The DGFT of india issues the Certificate of origin (COO) for AIFTA
it usually takes 5-7 working days to acquired certificate of origin for AIFTA