Updated on February 15, 2025 04:05:00 PM
The APTA Certificate is a Certificate of Origin issued by the Directorate General of Foreign Trade (DGFT) in India. The DGFT-issued APTA Certificate ensures that the commodity that is meant to be exported is fully and authentically manufactured or produced in the originating or exporting country. In order to legally verify the goods, the exporter is required to produce multiple essential documents before the DGFT authorities to prove that the goods have been genuinely manufactured in India, complying with all necessary trade-related standards, rules, and regulations. The exporter must also provide evidence in the form of records and documentation of the manufacturing process and the exact origin of raw materials used in production.
The necessity of obtaining the APTA Certificate of Origin is mainly for ensuring smooth customs clearance in the designated importing country. In case the goods being imported do not possess a Certificate of Origin, the importing country’s respective customs authorities are likely to tax the goods at comparatively higher rates, imposing additional custom duties and levies, which could significantly raise the overall cost of the products. The APTA Certificate of Origin serves as a crucial trade document used by the importing country to ensure that the products fall under duty-free categories, confirming that the goods are rightfully originating from the country as per the terms of a free trade agreement. This certification helps in reducing tariffs, lowering costs, and promoting trade relations between countries by ensuring mutually beneficial and fair trade practices.
APTA Registration [SAMPLE]
Here’s a list of important documents typically required for APTA (Asia-Pacific Trade Agreement) registration to ensure smooth processing.
APTA registration enables businesses to export goods under the Asia-Pacific Trade Agreement, ensuring preferential trade benefits and smoother transactions. Here’s a step-by-step process:
The APTA registration fee in India is ₹3,500, which includes a ₹2,000 ID creation fee and a ₹1,500 certificate generation fee per invoice, which is mandatory for all applicants applying.
APTA (Asian Pacific Trade Agreement) registration provides businesses with various benefits that can enhance their trade prospects within the member countries. Some of the key benefits include:
India has enhanced its market access commitments for neighbouring service providers. These commitments provide companies with an opportunity to build market expertise and grow by international expansion. Under Free or Preferential Trade Agreement there are multiple options where certificate of origin can be generated from India for import benefits to importing companies:-
ICPTA - India Chile Preferential Trade Agreement
SAFTA - South Asia Free Trade Agreement
SAPTA - SAARC Preferential Trade Agreement
IKCEPA - India Korea Comprehensive Economic Partnership Agreement
IJCEPA - India Japan Comprehensive Economic Partnership Agreements
AIFTA - ASEAN India Free Trade Agreement
ISFTA - India Sri Lanka Free Trade Agreement
Ind-Aus ECTA- India australia economic cooperation and trade agreement
GSP - Generalized System of Preferences
GSTP - Global System of Trade Preferences
IMCECA - India Malaysia Comprehensive Economic Cooperation Agreement
ISCECA - India Singapore Comprehensive Economic Cooperation Agreement
In India, the authorized agencies responsible for issuing certificates of origin are clearly listed in Appendix 35 of the Handbook of Procedures, Volume-1, as per the Foreign Trade Policy. These are:
Agreement | Agencies authorized to issue Certificate of Origin |
---|---|
Asia Pacific Trade Agreement (APTA) | Export Inspection Council (EIC); Export Development Authorities; Development Commissioners of EPZs and SEZs; FIEO |
Global System of Trade Preferences (GSTP) | EIC for all products; Tobacco Board, Guntur for tobacco and tobacco products |
India Afghanistan PTA | EIC |
India ASEAN Trade in Goods Agreement | EIC |
India Chile PTA | EIC |
India JAPAN CEPA | EIC |
India Mercosur PTA | EIC |
India Singapore CECA | EIC |
India South Korea CEPA | EIC |
South Asian Free Trade Agreement (SAFTA) | EIC |
The four methods of supplying trade in services are:
Cross-border supply – This occurs when a service is provided from one country to another without the supplier or consumer moving. For instance, an architect sends designs electronically, a lecturer shares teaching materials abroad, or a doctor in France advises a patient in India online. This is similar to goods being traded across borders.
Consumption abroad – This refers to a case where a consumer travels to another country to utilize a service. For instance, a tourist may stay in a hotel or eat at a restaurant abroad, or a ship goes for maintenance in another country.
Commercial presence – This is where a service provider establishes a business in another country. For instance, a bank opens a branch in a foreign country to provide its services there.
Natural persons : It includes the temporary movement of a person to another country to provide some form of service. Examples include doctors, engineers, consultants, and accountants working in another country for a short period. But in no way does it account for permanent residency or citizenship.
The APTA Certificate of Origin that is offered by the Indian Directorate General of Foreign Trade (DGFT) acts as an assurance that export goods are both manufactured and produced in the originating country. This certificate is required for import clearance in the importing country to avail trade at less tariff under the Asia-Pacific Trade Agreement and affordable trade. Exporters need to present legal documents on origin as well as processing of the products to be exported. Some of the advantages APTA registration has include affordable trades that help in improving and bringing out better trade relations between the different members of the society.
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A Comprehensive Economic Partnership Agreement (CEPA) or Comprehensive Economic Cooperation Agreement (CECA) is different from a traditional (FTA) Free Trade Agreement in two ways.
Firstly, CEPA or CECA are more comprehensive and ambitious than an FTA in terms of coverage of areas and the type of commitments. While a traditional Free Trade Agreement focuses mainly on goods; a CECA/CEPA is more ambitious in terms of a holistic coverage of many areas like services, investment, competition, government procurement, disputes etc.
Secondly, CEPA/CECA looks deeper at the regulatory aspects of trade than a Free Trade Agreement. It is on account of this that it encompasses mutual recognition agreements that cover the regulatory regimes of the partners. An MRA recognises different regulatory regimes of partners on the presumption that they achieve the same objectives.
Countries negotiate Free trade Agreements for a number of reasons:
India has preferential access, economic cooperation and Free Trade Agreements (FTA) with about 54 individual countries. India has signed bilateral trade deals in the form of Comprehensive Economic Cooperation Agreement (CECA) / Comprehensive Economic Partnership Agreement (CEPA) / Free Trade Agreement / Preferential Trade Agreements (PTAs) with some 18 countries. India is a late & cautious, starter in concluding comprehensive PTA covering substantially all trade with some of its trading partners.
Country of origin / Rules of origin (ROO) are the criteria needed to determine a product for purposes of international trade. Their significance is derived from the fact that duties & restrictions in several cases depend upon the source of imports.
Rules of origin are used:
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