The South Asian Free Trade Agreement (SAFTA) is a regional trade agreement between eight countries in South Asia. One of the key components of SAFTA is the Rules of Origin, which determine whether a product is eligible for preferential tariff treatment under the agreement. The rules of origin for SAFTA specify the criteria that must be met for goods to be considered as originating from a SAFTA member country. These criteria are designed to ensure that the goods have undergone sufficient production or processing within the member country to qualify for preferential tariff treatment.
The product must satisfy any applicable product-specific rules of origin. Rule 8 applies to goods that do not satisfy the wholly obtained criterion specified in Rule 7 of the SAFTA Rules of Origin. In other words, if a product contains materials that are not sourced from within the SAFTA member countries, the product must satisfy the conditions specified in Rule 8 to qualify for preferential tariff treatment under the SAFTA agreement.
In addition to these rules, the SAFTA agreement also specifies that the origin of the goods must be supported by a valid certificate of origin issued by an authorized agency. The certificate must contain information such as the exporter’s name and address, the consignee’s name and address, a description of the goods, and the origin criteria met by the goods.
Under Rule 7 of the SAFTA agreement, certain operations are considered insufficient to confer the status of originating products. These non-qualifying operations do not meet the requirements for a product to be considered originating and therefore do not qualify for preferential tariffs, here are the operations that are considered insufficient for conferring the status of originating products under Rule 7 of the Rules of Determination of Origin of Goods under SAFTA:
These operations do not meet the required criteria for conferring the status of originating products under SAFTA. In India, the Customs department is responsible for implementing and enforcing the Rules of Origin for SAFTA. Here’s what you need to know:
In conclusion, understanding the Rules of Origin for SAFTA in India is essential for businesses that want to take advantage of the preferential tariff treatment offered under the agreement. By following the guidelines set by Customs and obtaining a Certificate of Origin from an authorized agency, exporters can ensure that their products meet the criteria for preferential treatment and avoid delays or rejection of their shipments.