Updated on May 06, 2025 02:36:56 PM
The India-Mercosur Preferential Trade Agreement, also known as IMPTA is a landmark for business that require entry into the Latin American market. This preferential trade agreement between India and MERCOSUR (Argentina, Brazil, Paraguay and Uruguay) is a significant part in enhancing and expanding the cooperation between India and South America by lowering taxes, eradicating trade barriers, and creating easier access to the markets of both regions for a wide range of products.
For Indian exporters and importers, this agreement has benefits in the following aspects as it offers an opportunity for business to export to Brazil and Argentina from India. It also focuses on the sectors having high demand in the global markets like pharmaceuticals, textiles, automobiles, chemicals, agriculture, etc. As the India-MERCOSUR 2025 preferential trade agreement progresses, the focus remains on improving trade policies, reducing taxes, and increasing competitiveness in Latin American markets.
For those who are interested in expanding their business internationally, it is important to understand the requirements of registration, eligibility and compliance for the IMPTA. Whether you are a manufacturer, exporter or importer, it is always important that you stay updated with opportunities existing in Indian trade in Latin America. Below is the detailed information about the India-Mercosur PTA as well as the registration process, eligiblity, main advantages, and procedures to enter successfully into the South America markets.
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The India-Mercosur Preferential Trade Agreement (IMPTA) started in 2004 and was officially put into action in 2009 to improve trade between India and the Mercosur countries. Through this agreement, Mercosur offers lower taxes on Indian goods, making trade simpler and more affordable for both sides. The IMPTA is important for improving the relationship between India and Mercosur by removing trade barriers and boosting trade. It also provides helpful information for those looking to start exporting to Mercosur countries. The agreement is a key part of growing trade connections and increasing access to markets in Latin America.
The India-Mercosur Preferential Trade Agreement (IMPTA) offers several benefits. Some of the key advantages include:
The India-Mercosur Preferential Trade Agreement (PTA) establishes concessional tariff rates on various goods traded between India and Mercosur member countries (Argentina, Brazil, Paraguay, and Uruguay). The eligibility criteria for benefiting from the PTA include:
The India-Mercosur Preferential Trade Agreement (PTA) covers a list of 450 products from the Indian side and 452 products from the Mercosur side, with tariff concessions ranging from 10% to 100%.
To register for the India-MERCOSUR Preferential Trade Agreement (IMPTA) and obtain the necessary Preferential Certificate of Origin (CoO) for your exports, follow the steps outlined below:
Any exporter who wishes to register with IMPTA has to use a Digital Signature Certificate of Class II or III which contains IEC code. This helps in offering reliable on-line identification as well as confirmation of documents.
The exporter must ensure that IEC details on the DGFT portal are valid and updated before proceeding with the next steps. Following it up with the correct registered email ID and mobile number is a must, as it would help in effective communication as well as authentication.
Any exporter who wants to export their product must visit the https://coo.dgft.gov.in website and get registered by using its IEC (Importer Exporter Code) and DSC (Digital Signature Certificate). Once completed, login credentials are sent to the registered email and mobile number for secure platform access.
Exporters must first enter the CoO application and apply with the reference “India-MERCOSUR PTA.” They must provide documents such as invoices and shipping details and submit them for validation.
After verification, the issuing authority digitally signs and approves the Certificate of Origin. The electronic certificate is made available for download, and physical copies can be obtained if required.
To register under the India-MERCOSUR Preferential Trade Agreement (PTA), several documents are required for both importers and exporters. Here is a list of documents required for India Mercosur PTA:
Wholly Obtained or Produced Products:
For exporters, additional documents may include:
The India-Mercosur Preferential Trade Agreement assists MSME and start-ups as they ease tariffs on certain goods and increase exports to Argentina, Brazil, Paraguay, and Uruguay. It drives market development and enhances competition and creativity. There may be issues with regard to compliance with some of the Mercosur regulations and high costs of logistics. In general, PTA facilitates more engagement of small businesses in international markets, trade, investment, and employment for growth sectors such as textiles and garments, pharmaceuticals, and auto spare parts.
The total cost for IMPTA registration is ₹6,235, covering a ₹736 government fee, ₹500 one-time registration fee, ₹2,000 application fee, and ₹2,999 professional fee, ensuring a smooth registration process. Below is the detailed structure:
| Particulars | Cost of IMPTA Registration |
|---|---|
| Government fee | ₹736 |
| One-time registration fee | ₹500 |
| Application fee | ₹2,000 |
| Professional fee | ₹2,999 |
| Total cost of registration | ₹6,235/- only |
Note: This certificate is generally valid for one year from the date of issuance. After this period, exporters must renew the certificate for continued use in international trade.
Conclusion
The India-Mercosur Preferential Trade Agreement was signed so as to provide favorable terms to Indian exporters to enter the Latin American market by lowering the tariff line with Mercosur countries. This treaty fosters trade relations, creates export opportunities, and improves the two countries’ partnership. The IMPTA registration and the preferential Certificate of Origin enable the exporters to benefit from concessions, call for competitiveness, and thus improve on their returns. The eligibility criteria depending on the type of goods and the registration and compliance standards should be clear to conduct trade activities effectively. When it comes to implementing IMPTA certification, Professional Utilities can make the task easier and free from most complications.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
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India-MERCOSUR PTA (Preferential Trade Agreement) is more of a preferential trading arrangement where trade preferences on certain products are granted to both sides, with the partnership being between India and MERCOSUR, a South American common market.
A Preferential Trade Agreement (PTA) with India is a trade arrangement whereby participating nations cut simple average tariffs on some exports and imports to enhance trade between two nations.
After 25 years of negotiations, the European Union and Mercosur, as the South American group of countries, including Brazil, Argentina, Uruguay, and Paraguay, signed the free trade and cooperation agreement.
PTA contains some extent of tariff preferences on certain products, while FTA provides non-tariff or minimal tariffs with the member countries.
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