A Certificate of Origin (CO) is an international trade document certifying the country where a commodity or good was manufactured, produced, processed, or obtained. It is essential documentation for customs clearance, as it helps determine the applicable duties, taxes, and any trade restrictions or preferences that may apply to the imported goods.
Purpose and Importance
The primary purposes of a Certificate of Origin are:
Tariff Determination
Customs authorities use the CO to determine the applicable tariffs and duties based on the country of origin. Many countries have preferential trade agreements that reduce or eliminate tariffs for goods from specific countries.
Trade Compliance
The CO ensures that the imported goods comply with the rules of origin, which are the criteria used to determine the national source of a product. These rules help prevent trade deflection, where goods are routed through a third country to avoid higher tariffs or to benefit from preferential treatment.
Statistical Purposes
COs provide valuable data for trade statistics, helping governments and businesses track the flow of goods between countries and make informed decisions about trade policies and investments.
Types of Certificates of Origin
There are two main types of Certificates of Origin:
Non-Preferential Certificates of Origin
These general certificates attest to the country of origin without granting preferential treatment. They are often required for statistical purposes or to comply with import regulations.
Preferential Certificates of Origin
These certificates are used when the imported goods are eligible for reduced or zero tariffs under a preferential trade agreement, such as the Generalised System of Preferences (GSP), Free Trade Agreements (FTAs), or the EU’s Everything But Arms (EBA) initiative. Preferential COs must meet specific criteria outlined in the relevant trade agreement.
Issuing Authorities
Certificates of Origin are typically issued by the following authorities:
- Chambers of Commerce: The local Chamber of Commerce is authorised to issue and certify COs in many countries.
- Government Agencies: Some countries have designated government agencies responsible for issuing COs, such as customs authorities or trade ministries.
- Trade Associations: Certain industries or trade associations may be authorised to issue COs for specific types of goods.
Required Information
A Certificate of Origin generally includes the following information:
- Exporter and Importer Details: The exporter and importer’s names and addresses.
- Product Description: A detailed description of the goods, including the Harmonized System (HS) code, quantity, value, and any distinguishing marks or numbers.
- Origin Criteria: A statement specifying the origin criteria under which the goods qualify, such as “wholly obtained” or “sufficiently processed.”
- Declaration: A signed declaration by the exporter or their authorised representative attesting to the accuracy of the information provided.
- Certification: The issuing authority’s stamp, signature, and date of issuance.
Validity and Presentation
The validity period of a Certificate of Origin varies depending on the issuing authority and the destination country’s requirements. Typically, COs are valid for several months from the date of issuance.
Exporters must present the original Certificate of Origin to the customs authorities in the importing country, along with other required documents such as the commercial invoice, packing list, and bill of lading. Some countries may accept electronic or digitally signed COs, while others require hard copies with signatures and stamps.