ASEAN-India Free Trade Area (AIFTA)

• Market access. Eliminates tariffs for 75% of Singapore’s originating exports to India. For a further 10% of product lines, the AIFTA commits parties to reduce tariffs below 5%.

• Regional cumulation. Imported Materials from other AITIGA Parties, that have been defined as originating based on the agreed percentage criterion, can be counted as originating from Singapore in the production of goods. This makes it easier for products exported from Singapore to qualify for preferential tariff treatment when exporting to other AITIGA Parties.

• Back-to-back arrangement. AITIGA originating goods brought into Singapore and re-exported within AMS and India, can enjoy tariff concessions.

• Third-party invoicing. Customs authorities may accept an invoice issued from a different country or company exporting the originating goods, provided that the goods meet the necessary requirements. This invoice can come from countries that are not party to this Agreement.

Same rules and regulations as local companies for Singapore service suppliers seeking to provide their services in India. This includes profession, computer and related, communication, construction and related engineering, and financial services.

• Scope covering five sectors: Manufacturing, Agriculture, Fishery, Forestry, and Mining and Quarrying;

• Investment Protection, which provides legal safeguards for investors of an AIFTA Party and their investments in another AIFTA Party, through requirements to provide Fair & Equitable Treatment and protections against expropriation. Also provides for a legal mechanism for the resolution of investment disputes pertaining to select provisions under the AIFTA under which an investor of an AIFTA Party may pursue an arbitration claim against another AIFTA Party for breaches of the AIFTA’s investment provisions;

• Investment Facilitation, which aims to streamline and simplify investment rules and procedures; and

• Investment Promotion, which aims to market ASEAN as an investment area.