IJCEPA CERTIFICATION
The India-Japan Comprehensive Economic Partnership Agreement (IJCEPA) is a bilateral trade deal designed to enhance economic cooperation and improve trade relations between India and Japan by providing preferential tariff treatment to imports and exports. The IJCEPA certificate, issued under this agreement, serves as evidence that specific transactions qualify for reduced tariffs or other trade benefits. This certificate is crucial for customs clearance and confirms that exported goods are entirely made in either India or Japan.
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Overview of the IJCEPA Certificate
The India-Japan Comprehensive Economic Partnership Agreement (IJCEPA) is a bilateral trade deal between India and Japan aimed at boosting economic cooperation, improving trade relations, and creating a favourable investment environment. The main purpose of this agreement is to provide preferential tariff treatment to import/export between the two countries. The IJCEPA certificate is a document issued to businesses involved in trade between India and Japan under the terms of the India-Japan Comprehensive Economic Partnership Agreement. It serves as evidence that a specific transaction qualifies for preferential treatment, such as reduced tariffs or other trade benefits outlined in the agreement. In India, the IJCEPA Certificate is issued by the Directorate General of Foreign Trade (DGFT), which confirms that exported goods are entirely made in either India or Japan. Having a Certificate of Origin is crucial for customs clearance, if goods arrive without it they may be subject to taxes by the importing country's customs authorities. Therefore, the certificate of origin ensures that products qualify for preferential treatment and are from countries covered by the free trade agreement.
- Benefits of the IJCEPA Certificate
- Other Free Trade Agreements
- Eligibility Criteria for the IJCEPA Certificate
- Documents and Information Required for IJCEPA Certificate
- Procedure for Obtaining IJCEPA Certificate
- Fees for IJCEPA Registration
- Import Export Code Validity and Renewal
- Why RegisterKaro?
- Frequently Asked Questions
IJCEPA CERTIFICATION
Benefits of the IJCEPA Certificate
The following are the benefits of the certification:
- Preferential Market Access: The IJCEPA certificate grants businesses preferential access to markets, enabling them to benefit from reduced or zero tariffs on eligible goods and services traded between India and Japan. This preferential treatment enhances product competitiveness, lowers costs, and expands market opportunities for businesses on both sides, fostering bilateral trade and strengthening economic ties.
- Tariff Reductions and Eliminations: Under the IJCEPA, India and Japan have committed to reducing and eliminating tariffs on various goods and services. The IJCEPA certificate allows businesses to capitalize on these tariff reductions, making their products more affordable and competitive in respective markets. This reduction in trade barriers encourages higher trade volumes and benefits businesses involved in bilateral trade.
- Streamlined Customs Procedures: The IJCEPA certificate simplifies customs procedures by reducing documentation requirements and expediting the clearance process for eligible goods. It minimizes administrative burdens and facilitates smoother customs procedures, saving time and resources for businesses engaged in India-Japan trade. This efficiency in customs clearance enhances the overall trade experience and fosters a conducive trading environment.
- Enhanced Business Opportunities: The IJCEPA certificate creates new business opportunities for Indian and Japanese companies. It promotes collaboration and partnership across various sectors, including manufacturing, technology, and services. With reduced trade barriers and increased market access, businesses can explore new avenues for growth, expand their customer base, and leverage the expertise and resources of the partner country.
Other Free Trade Agreements
India has enhanced its market access commitments for neighbouring service providers. These commitments provide companies with an opportunity to build market expertise and grow through international expansion. Under Free or Preferential Trade Agreements there are multiple options where the certificate of origin can be generated from India for import benefits to importing companies which are as follows:
- ICPTA - India Chile Preferential Trade Agreement
- SAFTA - South Asia Free Trade Agreement
- SAPTA - SAARC Preferential Trade Agreement
- IKCEPA - India Korea Comprehensive Economic Partnership Agreement
- 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
Eligibility Criteria for the IJCEPA Certificate
To qualify for the Comprehensive Economic Preferential Agreement between India and Japan, goods must meet the following criteria:
- Goods entirely obtained or produced in either India or Japan:
- This includes live animals born and raised in India or Japan, obtained through hunting, trapping, fishing, gathering, or capturing.
- It also covers goods obtained from live animals, plants, plant products, minerals, and other naturally occurring substances harvested, picked, gathered, or extracted in India or Japan.
- Goods derived from sea-fishing activities outside the territorial seas of both countries, goods produced on board factory ships outside these seas, and goods extracted from the sea-bed or subsoil beneath it outside the territorial sea, in accordance with the UN convention on the law of the sea.
- Articles collected in India or Japan that can no longer serve their original purpose and are suitable only for disposal or recovery of parts or raw materials, including scrap and waste from manufacturing, processing, or consumption.
- Parts or raw materials recovered in India or Japan from articles that can no longer function as intended and cannot be repaired or restored.
- Goods produced in India or Japan exclusively from materials meeting the above criteria.
- For goods not entirely obtained or produced in India or Japan to qualify, they must meet these requirements:
- Have a value content of at least 35%.
- All non-originating materials used in production must undergo a change in tariff classification at the 6-digit level of the harmonised system in either India or Japan.
Documents and Information Required for IJCEPA Certificate
When applying for an IJCEPA Certificate, you'll need the following documents:
- DGFT login id
- Exporter and Importer Details: This includes their name, address, country and other details.
- Port Information: Specify the loading port, transit port, and discharging port.
- Transportation Details: Include the name of the vessel or flight number and the date of shipment (bill of lading or airway bill date).
- Goods Description: Provide item number, marks & numbers, number and type of packages, tariff classification number (HS 2007), and description of each item.
- Tariff Classification: Specify the HS tariff classification number in a six-digit level.
- Preference Criteria: Indicate the preference criterion of the goods.
- Quantity: State the quantity of goods being exported.
- Invoice Details: Include the invoice number and date for each item, and mention third-country invoicing if applicable.
- Digital Signature: Attach a Digital Signature Certificate (DSC).
- Import-Export Code: Provide the Import-Export Code (IEC).
- Manufacturer Exporter Declaration: Include a declaration on the company's letterhead.
- Product Description: Provide a detailed description of the products being exported.
- Purchase Order: Attach the purchase order from the importer.
- Declaration: Include any additional declarations required for the application.
Procedure for Obtaining IJCEPA Certificate
The complete procedure for obtaining the IJCEPA Certificate is as follows:
- Application: The applicant applies to the appropriate authority with a Digital Signature Certificate (DSC) and updated Import-Export Code (IEC).
- Necessary Documents: The applicant submits all relevant information and required documents along with the application.
- Payment: The applicant makes payment of the requisite fees after submission of the application form.
- Issuance of License: When all the above-mentioned steps are completed, the appropriate certificate issuing authority issues the IJCEPA certificate in the name of the applicant.
Fees for IJCEPA Registration
Before obtaining IJCEPA registration, the business must have an Import Export Code (IEC). the government fee for IEC is Rs. 500 and the professional fee is around Rs. 1000 to 1500. If the business already has IEC then obtaining IJCEPA registration becomes easier.
For IJCEPA registration government fee is Rs. 736 and the one-time registration fee is Rs. 500. Apart from this if the applicant is involving a professional, then a professional fee also needs to be paid which varies between Rs 2000 to 3000. Once granted it is valid for 12 months from the date of issuance.
Import Export Code Validity and Renewal
The Validity of an IEC code is also one year. It is mandatory to update the details of the IEC every year. Even if there are no updates, then also it needs to be confirmed through DGFT’s online portal. Failing to do so may result in deactivation of your IEC. RegisterKaro has been the ultimate solution for obtaining IJCEPA Certification due to its wide array of benefits including:
- Expert Team: RegisterKaro boasts a diverse team of experts from around the globe, specializing in IJCEPA Certification services. Our expert team ensures that your requirements are efficiently addressed.
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- Building Trust: RegisterKaro is dedicated to building trust with its clients, which has allowed us to establish a strong presence in the global marketplace.
- Trusted by 10,000+ Clients: With over 10,000 satisfied clients who have utilized our WPC certificate registration services, RegisterKaro has earned a reputation for quality and reliability over time.
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FAQs
What is the validity period of an IJCEPA Certificate?
IJCEPA Certificate is valid for 12 months from the date of issue.
What are other countries with which India has a Comprehensive Economic Preferential Agreement?
India has signed the Comprehensive Economic Preferential Agreement with other countries also such as Singapore and South Korea, apart from Japan.
What are the categories of Certificates of Origin?
The categories of Certificate of Origin include the following— Preferential and Non-preferential.
What is the purpose of a preferential Certificate of origin?
A preferential Certificate of Origin is required to export to countries that are involved in trade agreements.
What is the purpose behind obtaining an IJCEPA Certificate?
Importers have to submit an IJCEPA Certificate issued by any competent authority of the exporting Party to claim preferential tariff treatment. And also, in order to claim preferential tariff treatment under GSP, the importers are required to submit a valid IJCEPA Certificate issued by the competent authority of the beneficiary party/country.
What does it mean by importer?
Importers are natural or judicial persons who import goods to the importing Party.
What is the meaning of Fungible originating materials of a party?
The Fungible Originating materials of a party means originating goods or materials of a party that are interchangeable for commercial purposes & whose properties are essentially identical.
What is the eligibility criteria for IJCEPA certification?
Goods must either be entirely obtained or produced in India or Japan or have a qualifying value content of at least 35% with all non-originating materials undergoing a change in tariff classification.
What are the fees for obtaining IJCEPA registration?
The government fee for IJCEPA registration is Rs. 736, along with a one-time registration fee of Rs. 500. Additionally, professional fees may range from Rs. 2000 to 3000.
What is the procedure for obtaining the IJCEPA Certificate?
The procedure involves application submission with necessary documents, payment of fees, and issuance of the certificate by the appropriate authority.