What Is Free Sale Certificate? [Process, Purpose & Importance]

If you are a manufacturer or exporter and you are in the business of importing and exporting cosmetic products or medical devices then you need a free sale certificate as a document in the process of your application license. Manufacturer or businessmen who wants to export their products from India to any other foreign country or who wants to import products into India requires a free sale certificate as proof, ensuring the particular product is not restricted or banned for use and is freely sold in the country of origin.

Overview of Free Sale Certificate

It is official legal proof ensuring that your product is freely sold in the country of origin and is not restricted for consumer use. It also signifies that the product meets the regulatory requirements. A free sale certificate is issued by the National Regulatory Authority of the exporting country as per the rules and regulations of the country. It is also known as an export certificate. A free sale certificate is mostly required for commodities such as medical devices & cosmetics to certify the product is freely available in the market of the export country.

Who Can Apply For a Free Sale Certificate DGFT? 

If you fall under any of the categories that is mentioned below then you must apply for the free sale certificate to make your product more reliable and free to sale in any of the country’s origin. This will help you to boost your sale and also introduce your brand in other targeted countries.

• Manufacturer – Manufacturers who are willing to sell their products in other country origins without facing any kind of issues.
• Importer – If you import goods to other countries then must apply for the free sale license.
• Exporter – All the exporter wants to boost their business must apply for the certificate of Free sale in India.
• Businessman – Are you a business owner of any cosmetics and medical device industry then must apply for the this certificate.

Why Free Sale Certificate Is Required? 

The Free Sale Certificate is Required due to below mentioned reasons. They are:

• Legal Requirement: Essential for meeting regulatory requirements when exporting specific products such as medical devices, cosmetics, and pharmaceuticals.
• Ensure Regulatory Compliance of the product: FSC confirms that the product is as per regulatory standards of the country where it is manufactured.
• Global Marketing of the product: Needed by importing countries to ensure that the product is approved and freely sold in the country of origin.
• Provide product Authenticity: It ensures that the product is of good quality, safe and effective as per standards.
• For Export business:  FSC is mandatory in some countries for export customs clearance
• Enhance Credibility of the product: It builds trust and reputation of the business and also builds customer trust in the product.
• Facilitates product entry in the new market: FSC provide product assurance and promotes the entry of products into new markets.

What Products are Required for Free Sale Certificate? 

A Free sale Certificate is required to confirm that the products are freely and legally sold in the country of origin and ensures quality and safety standards. The products are listed below:

• Personal care products
• Medical devices
• Cosmetics
• Pharmaceuticals
• Nutraceuticals
• Health aids and supplements

List Of Documents Required To Apply for Free Sale Certificate In India 

You need the following documents for applying Free Sale Certificate:

• If you are a manufacturer, a valid manufacturing license is needed
• List of products for which you require free sale certificate
• Power of attorney
• Permission letter for requested products
• Fee Receipt

Pre-requisites Of Obtaining a Free Sale Certificate In India 

Below are some of the pre-requisites that should be followed to get the benefits of a free sale certificate:

• Your profile should be attached with the import-export code (IEC).
• You must have an original Digital Signature Certificate (DSC) that should be valid and registered.
• Registration cum membership certificate issued to the IEC team.

Procedure For Obtaining a Free Sale Certificate In India  

An applicant may follow the below steps to obtain the Free Sale Certificate in India:

• Visit the official site of the Director General of Foreign Trade (DGFT) and select the relevant application form for a free sale certificate from the service tab.
• After opening of free sale certificate application, you need to pay the applicable fees by clicking on the Miscellaneous Payment System (MPS).
• The next step is to provide the PAN card details of the applicant and submit the details.
• After confirming the MPS details system will present the main screen, click on the new payment button to proceed further.
• Then applicant needs to fill in the details including firm name, IEC certificate, PAN details, and payment amount on reference number. Further, an applicant will receive an OTP from a website that will be verified by clicking on the pay button to make the payment.
• After verifying the payment and details confirmation, you need to select the reference number of your payment for which you want to take the printout.
• Now the applicant needs to submit the payment receipt to DGFT (Regional Authority) along with the application to proceed further.
• The regional authority will review the application and if everything is found compliant, it will issue the free sale certificate to the applicant.

Timeline To Obtain Free Sale Certificate? 

The timeline to obtain a Free Sale Certificate is 30 working days from the date of application submitted to the Regional Authority.

What Is The Validity Of a Free Sale Certificate? 

The validity of the Free Sale Certificate is 2 years from the date of issuance.

Contact Us, ELT Corporate For a Better Experience  

We, ELT corporate with deep industry knowledge and expertise can help you in granting of free sale certificate for your organization. Let’s collaborate for a smooth and seamless process of obtaining A Free Sale Certificate and to drive your success and meet regulatory compliance.

FAQs (Frequently Asked Questions)