Updated on February 10, 2025 12:31:57 PM
The ICPTA Certificate is a Certificate of Origin issued by the Directorate General of Foreign Trade (DGFT) in India. The DGFT-issued ICPTA Certificate ensures that the commodity that is meant to be exported is completely and legitimately manufactured or produced in the originating or exporting country, providing verified authenticity to the origin of goods. To thoroughly 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, including detailed production records, raw material invoices, and other relevant supporting evidence that validate the entire manufacturing process.
Obtaining a Certificate of Origin is necessary primarily to facilitate seamless 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 significantly higher rates, imposing additional customs duties and levies, which could substantially raise the overall cost of the products. The ICPTA Certificate of Origin acts as an essential trade document used by the importing country to ensure that the products qualify for duty-free benefits, confirming that the goods are authentically originating from the country as per the conditions of a free trade agreement. This certification plays a vital role in fostering economic cooperation, reducing trade-related barriers, and promoting efficient and transparent trade relations between countries by ensuring fair and mutually advantageous trade practices.
ICPTA Registration [SAMPLE]
To benefit from the ICPTA, exporters or importers must submit specific documents during the process. Below is a general list of documents required:
The ICPTA involves obtaining the necessary documentation and certifications to claim preferential tariff benefits under the agreement. Here's a step-by-step guide:
The ICPTA 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.
Fee Description | Amount |
---|---|
ID Creation Fee | ₹2,000 |
Certificate Generation per Invoice | ₹1,500 |
Total Fees | ₹3,500 |
The ICPTA Certificate of Origin offers significant benefits to businesses and economies of both India and Chile by facilitating smoother trade flows and enhancing economic cooperation. Here are the key benefits of ICPTA:
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.
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
APTA - Asia Pacific 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
The ICPTA Certificate is a Certificate of Origin that is provided by the Directorate General of Foreign Trade in India to claim that the exported product is further manufactured or produced within India. It is used for authenticity for customs clearance and for availing concessions under the Indo-Chile Preferential Trade Agreement. To get the certificate for export, exporters must submit manufacturing records, raw material bills, relevant documents, etc. The ICPTA registration fee is ₹3,500/-, which will be used for ID creation and certificate generation. The advantages include lowering tariffs, improved market access and economic cooperation to spur bilateral trade, engorging industries in India and Chile.
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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.
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.
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