Free-Sale-and-Commerce-Certificate

Application for Free Sale and Commerce Certificate – COVID 19

Application for Free Sale and Commerce Certificate

The Free Sale and Commerce Certificates are issued for the export of Medical Devices/Equipment not covered under the Drugs & Cosmetics Act. According to the Foreign Trade Policy of India, Regional Authority (RA) of DGFT issues, a Free Sale and Commerce certificate to the exporter.  Due to the prevailing lockdown for COVID 19 pandemic, there has been a delay in issuance of free sale and commerce certificates. As a trade facilitation measure, the Director General of Foreign Trade (DGFT) has notified the clarification regarding the processing of an application for free sale and commerce certificates. As per this trade notice, the exporter is advised to forward the applications to obtain the Free Sale and Commerce Certificate to the official email ID of the concerned Regional Authority (RA) of DGFT.

Key Highlights of Notification

  • The Trade and Industry need to send the applications to get the free sale and Commerce Certificates to the official email ID of the concerned Regional Authority (RA).
  • The application to be made as per the prescribed format of ANF 2H and the fee payment needs to be done through the DGFT Miscellaneous Payment System (e-MPS system).

Responsibility of Regional Authority of DGFT

The regional authorities need to take cognizance of the applications for free sale and commerce certificates received in the official email id and issued the certificate through the mail, and deficiency letter also needs to be sent through email.

The Regional Authorities are requested to process with a soft copy of the application without asking for the hard copy of the application.

Note on Free Sale and Commerce Certificate

A free sale certificate is a document required in a certain country for certain commodities such as Medical Devices, food items, cosmetics, and biological. This certificate is also known as Certificate of Export or Certificate to Foreign Governments, and it is issued by the national regularity authority of the country from which the product is being exported. Free sale certificate certifying that the products listed in the certificates are typically and freely sold and consumed in their country of origin and are approved for the export.

In India, the certificate is issued by the Ministry of Commerce and Industry as an assurance that products listed on the certificate are freely manufactured and sold in the exporting country’s open markets.

Commerce Certificate

The commerce certificate is a document that identifies the origin of products being exported and is issued by a DGFT, Government of India. This document is required for customs clearance in the buyer’s country to determine tariff rates and determine the origin of the goods.

Governing Rules

Hand Book of Procedure of Foreign Trade Policy, 2015- 2020 deals with the issue of Free Sale and Commerce Certificate by Regional Authorities of DGFT to exporters or merchant exporter.

The validity of Free Sale and Commerce Certificates

Validity of the Free Sale and Commerce certificate will be two years from the date of issue unless otherwise specified.

Documents for Free Sale Certificate

According to the Notification of DGFT, the trade needs to forward the following documents along with the prescribed application to the RA.

  • Fee payment receipt
  • Valid manufacturing license
  • List of products for which Free Sale and Commerce Certificates are required
  • Product permission letters of the requested products
  • A letter from the concerned authority-demanding certificate
  • Copy of the power of attorney or authorization letter

Procedure for Fee Payment

The applicant is required to access the official website of DGFT, select the ECOM application from the service tab.

Application for Free Sale and Commerce Certificate - DGFT Home Page
Application for Free Sale and Commerce Certificate – DGFT Home Page

After accessing the ECOM application page, click on the e-MPS option (Miscellaneous Payment System) to make payment for the Free Sale and Commerce Certificate.

Application for Free Sale and Commerce Certificate - ECOM
Application for Free Sale and Commerce Certificate – ECOM

After providing the following details, click on the submit button.

  • PAN of the Firm/Individual
  • Enter PAN
  • Name of the Firm/Individual
Application for Free Sale and Commerce Certificate - EMPS
Application for Free Sale and Commerce Certificate – EMPS

After validating the detail e-MP System will display the main screen as shown below, click on the ‘Make a New Payment’ option from the left tab to proceed further.

Application for Free Sale and Commerce Certificate - EMPS Homepage
Application for Free Sale and Commerce Certificate – EMPS Homepage

Please fill the following details and provide a mobile number. After giving the number, the applicant shall receive an OTP from the website. Verify the OTP received on the mobile number and click on the Pay Now button to make the payment.

Note:  Please make sure the mobile number mentioned is not under the DNC Registry.

  • IEC / PAN
  • Firm Name
  • ECOM Reference Number
  • Transaction Reference Number
  • DGFT RA office
  • Payment Amount in Rs
  • Subject
  • Scheme
  • Remarks
Application for Free Sale and Commerce Certificate - EMPS Payment Page
Application for Free Sale and Commerce Certificate – EMPS Payment Page

Once the details are provided, click on the Pay Now Button. The system will display the details of payment being made, as shown below in the payment initiation screen.

Press the submit button to proceed further, and a payment detail confirmation screen will appear. Once the PROCEED button is pressed, the user will be directed to the payment gateway for making the payment.

Application for Free Sale and Commerce Certificate - Payment Confirmation
Application for Free Sale and Commerce Certificate – Payment Confirmation

Choose the required payment interface (Credit Card, Net Banking, or  Debit Card) facility to make the payment.

On successful payment of fee, the status of the transaction at the DGFT portal will be reflected. Click on the Print Receipt option. Select the ECOM Reference Number for which you want to print the payment receipt using the radio button.

Now the applicant can take the print of the payment receipt and forward it to the concerned DGFT RA, along with the application.

Make Application via Email

The applicant can send the application form along with the payment receipt to the concerned RA’s official mail ID.  Access the official website of Director General of Foreign Trade (DGFT) to get the Mail ID of the RA.

Because of the above, the exporters will have to indicate the details of the manufacturer or the exporter (if he is not the manufacturer) in Annexure- A of the Free Sale & Commerce Certificate and the Regional Authority will indicate the name of the manufacturer exporter in Annexure- B, to issue the Free Sale & Commerce Certificate. The application format as follows:

ANF-2H

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Post by Renu Suresh

Renu is experience content writer specialised in compliances and company rules.