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What is a free sale certificate and its role in international trade?
A free sale certificate is issued for the export of items that are not subject to export restrictions or prohibitions. Learn more about the process of obtaining it.
In global trade, importing countries often require a set of certifications to confirm a product’s quality, safety, and adherence to legal standards. One such document is the free sale certificate, which certifies that a particular product is freely sold and legally approved for sale in the exporting country’s market. The exact procedure for obtaining a free sale certificate can vary depending on the country. In this blog post, we will discuss the process exporters need to follow to obtain a free sale certificate in India.
What is a free sale certificate?
A free sale certificate, also known as a certificate of export, is a crucial document required for exporting various goods like medical devices, food items, cosmetics, and biological products. This certificate confirms that the product is legally available for sale in the country of origin and is not subject to any export restrictions or prohibitions. Typically, a free sale certificate is issued by the national regulatory authority of the exporting country.1
In India, the Free Sale and Commerce Certificate is issued to certify that a particular product is freely sold and manufactured in the country. It is important to note that this certificate does not indicate or confirm that a product has been assessed for safety and efficacy.2
In India, the Free Sale and Commerce Certificate is issued to certify that a particular product is freely sold and manufactured in the country. It is important to note that this certificate does not indicate or confirm that a product has been assessed for safety and efficacy.2
Who issues a free sale certificate in India?
In India, the Regional Authority (RA) of the Directorate General of Foreign Trade (DGFT) is responsible for issuing the Free Sale and Commerce Certificate to exporters. To reduce the regulatory compliance burden on exporters, the DGFT amended the application format for the Free Sale and Commerce Certificate in 2021, and removed the requirement for providing RCMC details and declaration.3
Documents required for a free sale certificate
To obtain a free sale and commerce certificate, exporters might be asked to submit the following details and documents during the application process:
● Importer Exporter Code (IEC)
● Current and valid manufacturing license
● A valid registered DSC (Digital Signature Certificate)
● List of products for which free sale and commerce certificates are being requested
● Certificates such as FSSAI4
● Importer Exporter Code (IEC)
● Current and valid manufacturing license
● A valid registered DSC (Digital Signature Certificate)
● List of products for which free sale and commerce certificates are being requested
● Certificates such as FSSAI4
A step-by-step guide to obtaining a free sale certificate in India
Exporters can follow these steps to apply for a free sale certificate in India:
Step 1:
Visit the DGFT website and login to the portal.
Step 2:
Navigate to Services, and go to Certificate Management.
Step 3:
Go to Free Sale and Commerce Certificate, and select “Apply.” You can choose to start a fresh application or proceed with an existing application if you have a previously saved draft.
Step 4:
On the “Application Details” screen, fill in required details including IEC number, name of company, contact details, and branch code. RCMC details will be auto-populated based on the IEC number.
Step 5:
In the “Purpose of Items Exported under Certificate” section, enter the product description and other details.
Step 6:
Navigate to the “Details of items exported under the certificate” section, and add required details, including information regarding the manufacturer and buyer or importer.
Step 7:
On the next screen, upload attachments as required.
Step 8:
Complete the declaration, check your details on the Summary page, and click the “Sign” button to digitally sign the application. Once complete, click the “Submit” button to submit the application
Step 9:
You will be redirected to the fee payment screen. Complete the fee payment and download the receipt.
Step 10:
You will receive an application submission message with file number on the screen.5
Conclusion
In conclusion, the free sale certificate plays a crucial role in international trade, providing assurance to importing countries that the exported products are legally available for sale and consumption in their country of origin. For e-commerce exporters, having such compliance documentation in place is essential for ensuring smooth and hassle-free exports. For additional support on documentation and compliance, exporters can leverage the tools and services offered by e-commerce export programs like Amazon Global Selling.
Amazon Global Selling: Easy e-commerce exports and hassle-free shipping
If you are a business owner and you want to sell your products to the world, Amazon Global Selling enables you to list and sell ‘Made in India’ products on 18 Amazon global marketplaces. As an e-commerce exports program, Amazon Global Selling provides support and guidance at every step of your export journey, connecting you to Amazon’s Service Provider Network for tailored compliance, payments, and logistics support.
Registered sellers can choose to ship their products by themselves through Merchant Fulfilled Network (MFN) or they can opt for Fulfilment by Amazon (FBA) and outsource order fulfilment to Amazon including packing, storage, delivery, and returns. Amazon Global Selling simplifies the process of international shipping to the world, helping businesses navigate customs and reach a vast audience.
Registered sellers can choose to ship their products by themselves through Merchant Fulfilled Network (MFN) or they can opt for Fulfilment by Amazon (FBA) and outsource order fulfilment to Amazon including packing, storage, delivery, and returns. Amazon Global Selling simplifies the process of international shipping to the world, helping businesses navigate customs and reach a vast audience.
Frequently Asked Questions
What is the benefit of a free sale certificate?
Exporters selling medical devices, food items, cosmetics, and biological products are often required to provide a free sale certificate that demonstrates that the product in question is freely sold in the country of origin and is not subject to export restrictions or prohibitions. This provides assurance to importing countries that the product is legally approved for sale in the exporting country.
Who can issue a free sale certificate?
In India, the Free Sale and Commerce Certificate is issued by the Directorate General of Foreign Trade, Ministry of Commerce and Industry.
Published on April 4, 2024.
Sources:
1. https://www.kireeticonsultants.com/free-sale-certificate
2. https://content.dgft.gov.in/Website/DGFT%20FAQs%20-%20Free%20Sale%20and%20Commerce%20Certificate%20v1.0.pdf
3. https://content.dgft.gov.in/Website/dgftprod/9211dd73-ee38-4dfa-b449-546e468d637e/PN%2013%20dt%2012-07-21%20Eng.pdf
4. https://content.dgft.gov.in/Website/DGFT%20FAQs%20-%20Free%20Sale%20and%20Commerce%20Certificate%20v1.0.pdf
5. https://content.dgft.gov.in/Website/DGFT%20-%20Free%20Sale%20and%20Commerce%20Certificate%20User%20Help%20File.pdf
Sources:
1. https://www.kireeticonsultants.com/free-sale-certificate
2. https://content.dgft.gov.in/Website/DGFT%20FAQs%20-%20Free%20Sale%20and%20Commerce%20Certificate%20v1.0.pdf
3. https://content.dgft.gov.in/Website/dgftprod/9211dd73-ee38-4dfa-b449-546e468d637e/PN%2013%20dt%2012-07-21%20Eng.pdf
4. https://content.dgft.gov.in/Website/DGFT%20FAQs%20-%20Free%20Sale%20and%20Commerce%20Certificate%20v1.0.pdf
5. https://content.dgft.gov.in/Website/DGFT%20-%20Free%20Sale%20and%20Commerce%20Certificate%20User%20Help%20File.pdf
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*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.
*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.
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