Overview of ISCECA Certificate
The India-Singapore Comprehensive Economic Cooperation Agreement (ISCECA) is India's first such Agreement. It is also the first Agreement between Singapore and a South Asian country. It has been effective since 1st August 2005. The Agreement focuses on the liberalisation of trade in goods, services and investments and also in areas related to international trade. This Agreement has been reviewed regularly by the Ministry of Commerce and Industry, first in 2007 and then in 2010.
This Agreement aims to determine the origin of products eligible for preferential tariff concession in pursuance of the India Singapore Comprehensive Economic Cooperation Agreement.
This Comprehensive Economic Cooperation Agreement between India and Singapore has four components:
Benefits of ISCECA Certificate
Following are the benefits of obtaining an ISCECA Certificate under the Comprehensive Economic Cooperation Agreement between India and Singapore:
- Enhancement to Avoidable Double Taxation Agreement
Investors are allowed to enjoy capital gains tax exemption on investments in India and encouraged trade flow investments, technical know-how and expertise between India and Singapore by eliminating the double taxation of income.
- Trade in Goods
About 75% of tariffs on Singapore's domestic exports of electrical and electronics, pharmaceuticals, instrumentation, and plastics to India were removed and substantially reduced within five years, and Singapore granted zero tariff treatment on all imports from India.
- Mutual Recognition
This Agreement has eliminated duplicate testing & certification of products, thereby reducing costs & shortening the time taken to facilitate entry of goods or products for sale to both contracting countries, India and Singapore. These contracting countries also commit to negotiating mutual recognition agreements in accounting and auditing, architecture, medicine, dentistry and nursing.
- Trade in Services
Service suppliers in both countries guarantee access to each other's markets. For the financial services, the three banks of Singapore are treated equally to Indian Banks, and they enjoy the freedom to open branches.
- Movement of citizens
Citizens of both the countries and their permanent residents are guaranteed entry and allowed to stay in each other's country as business visitors, short-term service suppliers, professionals and intra-corporate transferees.
This Agreement facilitates joint postgraduate programmes between the Indian Institute of Technology (IIT) and the Institute of Science with Singapore universities.
This Agreement has created a platform for the larger media industry and private sector collaboration between India and Singapore.
Other benefits of having such certification are as follows:
Eligible products for ISCECA Certificate
For the purpose of this Agreement, the products that are considered eligible for preferential treatment if they conform to origin requirements are as follows:
- Products that are wholly obtained/produced in the territory of exporting party, and such products include the followings:
- Raw or mineral good or product extracted from the soil, water, seabed or beneath of seabed of exporting party
- Vegetable goods harvested or produced in exporting party
- Animal born and raised in the such exporting party
- Goods obtained from animals are referred to in point (3)
- Goods obtained from hunting, trapping, fishing, gathering or capturing conducted in exporting party
- Goods of sea fishing and other marine goods taken from outside the territory of such party or territorial waters and Executive Economic Zone (EEZ) by vessels registered with a party and flying its flags
- Goods processed and made on board factory ships registered with a party and flying its flags exclusively from products referred above
- Goods that are taken by a party or person of such party from the seabed on beneath it outside the territorial waters or sea of such party as per the provisions of the UN Convention on Law of Sea
- Articles collected at the such exporting party which are no longer capable of performing their original purpose nor are capable of being restored/repaired and are fit for disposal or recovery of parts/raw materials or for recycling purposes.
- Goods produced exclusively at a such exporting party from all such goods refereed above or from their derivatives at any stage of production.
- Products not wholly obtained or produced in territory exporting party, provided such products are eligible if they are fulfilling the following requirements:
- Total value of materials, parts or produce originating from countries other than the contracting parties or of undetermined origin used in manufacture of a such product does not exceed 60% of the fob value of the product so obtained or produced;
- Products obtained or produced are classified in heading at the four-digit level of the harmonised system from all those which all the non-originating materials used in its manufacture are classified;
- Products that satisfy the product-specific rules under this Agreement.
Documents Required for ISCECA Certificate
Following are the required documents and information for obtaining ISCECA Certificate:
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Procedure for ISCECA Certificate
The steps to be followed for getting the ISCECA Certificate are as follows:
The applicant files an application to the competent authority with Digital Signature Certificate (DSC) and updated Import-Export Code (IEC).
The applicant submits all relevant information and documents along with the application.
After submission of the application, the applicant makes payment of the prescribed fees.
- Grant of License:
Once all the above-mentioned steps are fulfiled, the competent authority issues ISCECA Certificate to the applicant.