CEPA Agreement (Free Trade Agreement):- Benefits, Procedure and Eligibility

Per the CEPA agreement between India and other nations, the products shall be deemed as originating in a party country per the following criteria.

1. Wholly Obtained goods
2. Value-added Criteria for goods
3. Change in headers & subheadings
4. Change in the harmonized system (HS)
5. Final production before export must be done in the exporting nation.
6. Sharing specific product details with authorities to comply with preferential treatment
7. The Product has undergone adequate working or manufacturing per the Product specific rules (PSR) as agreed by the parties under CEPA

Proof of origin:

Exporters are required to give evidence of the Product's origin by any of the following means:-

1. Entirely digital certifications issued by any approved government organizations.
2. A paper certificate of origin of CEPA registration in electronic or hard copy format issued by the appropriate government authority.
3. A certificate of origin of the declaration given by a licensed exporter as per the requirements.

To apply for a CEPA Certificate of Origin, the following documents and details are required to ensure a smooth and efficient process for verifying the origin of goods being exported.

• Organization based Digital Signature Certificate
• DGFT Login ID
• Updated Import Export Code
• Digital Signature Certificate software
• Mobile No. & Email address
• Commercial Invoice
• Purchase Bill that has details of quantity, origin of raw materials, consumables used in product meant for export
• Manufacturer Exporter Declaration on the company’s Letterhead
• Product Description
• Purchase order from importer company

• Reducing tariffs & trade barriers in preferred countries
• Encouraging cross- border transactions between the territories of the Contracting counties.
• Promoting fair competition in the free trade states
• Ensuring equitable benefits to all Contracting countries
• Effective mechanism for joint administration & resolution of disputes
• Framework for regional cooperation and enhance mutual benefits for trade.

Under the CEPA Certificate, exporters have specific responsibilities to ensure compliance throughout the certification process. These responsibilities include:

• The exporters are responsible for providing asked documents during the CEPA certification process.
• Exporters proving misleading information and documents are liable to be punished or penalized.
• Exporters need to keep minimum information & supporting documents of their products for 5 years from the expiry date of their CEPA certificate.
• The exporter shall keep appropriate accounting records of the production supply of the products.
• The exporter shall notify the issuing authority, custom authority, and the importer of any chances that could affect the accuracy or validity.

Non-compliance with the CEPA Certificate of Origin regulations can lead to significant penalties. The following outlines the consequences for non-compliance:

1. Customs duties will be charged if the Product's certificate of origin shows that it doesn't meet the rules of origin of CEPA.
2. Each Party must also ensure civil and administrative laws are to be followed. When necessary, it will use criminal punishments for people who break its customs laws.