AFTA & SAFTA

AFTA (ASEAN Free Trade Area) and SAFTA (South Asian Free Trade Area) are regional trade agreements aimed at promoting trade among member countries by reducing or eliminating tariffs and trade barriers. Here's a summary of their requirements for export and import:

📘 AFTA (ASEAN Free Trade Area)

Member Countries:
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

✅ Requirements for Export/Import under AFTA (ATIGA – ASEAN Trade in Goods Agreement):

1. Certificate of Origin (Form D):

   • Issued by an authorized agency to confirm the goods originate in ASEAN.

   • Essential to qualify for preferential tariff rates.

2. ASEAN Origin Criteria:
   Goods must meet one of the following:

   • Wholly obtained or produced in the exporting country.

   • Regional Value Content (RVC) of at least 40%.

   • Product Specific Rules (PSR), if applicable.

3. Tariff Classification:

   • Goods must be classified correctly under the Harmonized System (HS) to determine eligibility.

4. Direct Consignment Rule:

   • Goods must be transported directly between ASEAN member states.

5. Compliance with ASEAN Standards:

   • Some goods may require compliance with specific health, safety, and technical standards.

📗 SAFTA (South Asian Free Trade Area)

Member Countries:
Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.

✅ Requirements for Export/Import under SAFTA:

1. Certificate of Origin (SAFTA Certificate):

   • Issued by designated government agencies.

   • Confirms that goods meet the origin rules of SAFTA.

2. Rules of Origin Criteria:

   • Minimum 40% value addition for Non-LDCs (e.g., India, Pakistan, Sri Lanka).

   • Minimum 30% value addition for LDCs (e.g., Bangladesh, Nepal, Bhutan, etc.).

   • Change in Tariff Heading (CTH) may also be a condition for some goods.

3. Sensitive List Compliance:

   • Each country maintains a list of sensitive products not covered under SAFTA concessions. Goods on this list are not eligible for tariff reduction.

4. Direct Transportation:

   • Goods must be shipped directly between member countries.

5. Supporting Documentation:

   • Commercial invoice, packing list, bill of lading, import/export licenses, and relevant permits.

🔍 Comparison Summary:

Feature AFTA (ASEAN) SAFTA (South Asia)

Certificate of Origin Form D SAFTA Certificate

Value Addition Requirement 40% RVC 30–40% depending on LDC/Non-LDC

Sensitive List No (Fully liberalized for most goods) Yes, varies by country

Applicable to Intra-ASEAN Trade Intra-South Asia Trade