FREE SALE CERTIFICATE

WHAT IS A FREE SALE CERTIFICATE?

Definition- "An export document required by certain countries for certain commodities like medical devices or for other products also in order to certify that the product is freely sold in the markets of the exporting country and as such can be freely sold in the market of importing country"

It is a legal document that states, "Your product are being freely sold and comply with all the rules and regulations of the state to which it belongs". in other words, it's evidence that the goods that you are looking for or purchasing or having are freely sold and distributed in the country where you are asking for this document and it's also evidence that this product is meeting all the regulatory requirements.

A free sale certificate is issued by The National Regulatory Authority of the exporting country as per the legislative requirements of the country. This certificate is also known as ''International Government Certificate'' or ‘‘Export Certificate''

Manufacturers who want to export their product to other country required this certificate in order to give proof that the particular product is not restricted or prohibited for export and are freely sold in the country but without any indication that the product is evaluated for safety and efficacy is registered for use in the county.

People may have questions in their minds Who can benefit from the Free Sale and Commerce Certificate?  The Manufacturer exporters or the merchant exporters may be benefitted from the Free Sale certificate or you can say it Commerce Certificate.

WHO ISSUE THE FREE SALE CERTIFICATE?

An importer/ exporter may choose to apply for free sale and commerce certificate for items other than medical devices and instruments from the website of the DIRECTORATE GENERAL OF FOREIGN TRADE (DGFT).

The governing rule for the free sale certificate - Handbook of procedure of the foreign trade policy 2015-2020 which deals with the issue of free sale certificate by the regional authority of DGFT to merchant exporter or exporters.

The validity of the free sale certificate - Free sale certificate will be valid for two years unless specified further.

HOW CAN WE GET A FREE SALE CERTIFICATE IN INDIA

Some of the prerequisites to avail the benefits of free sale certificate as mentioned below-

• The first thing is your profile must be linked with an IEC (Import export code)

• Valid digital signature certificate (DSC) must be registered in your system

• Registration cum membership certificate full details issued to the IEC.

NOTE- In any case, if you’re IEC is canceled in DEL then you will be not allowed to proceed further with the submission of your request for the issuance of a free sale certificate.

Documents Required for Free Sale Certificate

You need to forward the following documents along with the application to REGIONAL AUTHORITY,

• Valid manufacturing license

• Fee payment receipt

• A list of products with free sale certificates is required

• A letter from the concerned authority demanding the same certificate

• Copy of power of attorney

• Product permission letters of the requested product

Procedure for the Free Sale Certificate -  

1. Applicant can access the official website of The DGFT (Directorate General of foreign trade) & then select the ECOM application form specifically for the free sale certificate from the service tab.

2. After that when you get access to the ECOM application page then you need to click on the e- MPS option (Miscellaneous Payment System) in order to make payment for the same certificate.

3. After providing the details of - PAN of the firm/ individual, Enter PAN AND Name of the firm/ individual, click on submit button

4. After validating the detail e- MP system will display then the main screen, click on the ' Make a new payment option from the tab to proceed further.

5. After that, you need to fill in the below-mentioned details & provide a contact number. Then the applicant will receive an OTP from the website. Verify the received OTP click on the Pay Now button to make the payment.

• FIRM NAME

• IEC/ PAN

• ECOM Reference Number

• Subject

• The payment amount in RS

• Transaction reference number

• DGFT (Regional Authority office)

• Scheme

• Remarks (if any)

NOTE: Make sure that the contact number mentioned is not under the DNC Registry.

6. After providing the details click on the pay now button then the system will automatically display the details of the payment made,

7. After that press the submit button to proceed further and a payment details confirmation screen will appear. Once you will press the proceed button the user will be declared to the payment gateway for making the payment.

8. Then need to choose the required payment interface (Debit Card, Net Banking, or Credit Card) facility to make the payment.

On successful payment of the fee, the status of the transaction at the portal of DGDT will be reflected. Then you need to select the ECOM reference number for which you want to printout out the payment receipt.

9. Now the applicant can easily take the printout of the payment receipt & forward it to the concerned DGFT (Regional Authority) with the application.

YOU CAN ALSO MAKE APPLICATION via Email

The applicant can also go for the other process which is via Email here applicant needs to send the Application form which is (ANF-2H FORM) along with the payment receipt to the concerned Regional Authority's official mail ID.  You can access the official website of the Director-General of Foreign Trade (DGFT) in order to get the Mail ID of the Regional Authority.

CONCLUSION: 

Various countries are now demanding a free sale certificate also known as a certificate of export which is a promise from a foreign agency that the products available on the certificate are freely sold and manufactured in the desired countries which enhances the ease of doing business.

Author:

Shefali Srivastav
Uttar Pradesh
L.LM from Amity University, Noida