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 exporting Medical Devices/Equipment not covered under the Drugs & Cosmetics Act. According to the Foreign Trade Policy of India, the Regional Authority (RA) of DGFT issues a Free Sale and Commerce certificate to the exporter. Due to the prevailing lockdown for the COVID-19 pandemic, there has been a delay in issuing free sales and commerce certificates. As a trade facilitation measure, the Director General of Foreign Trade (DGFT) has notified the clarification regarding processing an application for unrestricted 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 is to be made per the prescribed format of ANF 2H, and the fee payment must be made through the DGFT Miscellaneous Payment System (e-MPS system).
Responsibility of the Regional Authority of DGFT
The regional authorities need to take cognizance of the applications for unrestricted sale and commerce certificates received in the official email id and issued the certificate through the mail. A deficiency letter also needs to be sent through email.
The Regional Authorities are requested to process a soft copy of the application without asking for a hard copy.
Note on Free Sale and Commerce Certificate
A free sale certificate is required in a particular country for certain commodities such as Medical Devices, food items, cosmetics, and biological. This certificate is also known as a Certificate of Export or Certificate to Foreign Governments. It is issued by the national regularity authority of the country from which the product is 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 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 the goods’ origin.
Governing Rules
Hand Book of Procedure of Foreign Trade Policy, 2015- 2020 deals with the issue of Free Sale and Commerce Certificates by Regional Authorities of DGFT to exporters or merchant exporters.
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 for 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 and select the ECOM application from the service tab.
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.
After providing the following details, click on the submit button.
- PAN of the Firm/Individual
- Enter PAN
- Name of the Firm/Individual
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.
Please fill in 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 ensure 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
Once the details are provided, click on the Pay Now Button. The System will display the details of the payment 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.
Choose the required payment interface (Credit Card, Net Banking, or Debit Card) facility to make the payment.
The System will reflect the transaction’s status at the DGFT portal in the successful payment of the fee. Click on the Print Receipt option. Select the ECOM Reference Number 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 an Application via Email
The applicant can send the application form and payment receipt to the concerned RA’s official mail ID. Access the official website of the 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. The Regional Authority will indicate the name of the manufacturer exporter in Annexure- B to issue the Free Sale & Commerce Certificate. The application format is as follows:
ANF-2HImporter Exporter Code
The Import Export Code is a primary document necessary for commencing Import-export activities. The IE code is to be obtained for exporting or importing goods or services.IEC has numerous benefits for the growth of the business. Indeed, you cannot ignore the necessity of IE code registration as it is mandatory. You can apply for an Import Export code through IndiaFilings and obtain it within 6 to 7 days.
