Here’s everything you need to know about Certificate of Origin
Posted On May 23, 2022
A Certificate of Origin is a piece of document that acts as proof that states that the goods that were a part of a particular export shipment are fully obtained, produced, manufactured, or processed in a particular country. The certificate describes in which country the good or commodity was manufactured.
The certificate of Origin also states the nationality of the product and it serves as a declaration by the end of the exporter to satisfy the customs or trade requirements. Every year, millions of COOs are given away by the authorities all over the world to facilitate and trade commerce.
The important international trade document which is popularly known as the COO is requested by the side of customs, banks, private stakeholders and importers for various purposes. Let me tell you one interesting thing about COO, every country in the whole wide world needs a COO for customs clearance procedures while determining the duty that will be assessed on the goods or in some cases whether the goods may be legally imported after all.
How many types of Certificates of Origin are there?
At this point, two types of COOs can be issued from the side of chambers and they are as follows:
1. Non Preferential Certificate of Origin: This type of certificate certifies the fact that the goods are subject to no preferential treatment. These are the main type of COOs that the chambers can grant to the license holder.
2. Preferential Certificate of Origin: This is another kind of certificate that certifies that the goods that are subject to reduced tariffs or exemptions when they are exported to countries extending these privileges. These COOs are very closely linked with the regional trade agreements.
The International Certificate of Origin (ICO) Council aims to enhance and promote and uplift the chambers as natural agents in the issuance of the trade documents.
What are the Certificates of Origin guidelines?
The ICC WCF International Certificate of Origin Guidelines is a specialized manual that consists of all the details about the international procedures for chambers in the issuance of non-preferential certificates of origin.
With the formation of the Certificate of Origins Accreditation Chain, ICC WCF looks forward to assisting the leaders of the chamber in creating more awareness about the universal certification and simply promoting it all over the world. Not only this it also processes better chambers of service of commerce as well as the traders and customs administrations.
The Certificates of Origin Verification website allows the customs authorities to check and verify the authenticity of the COOs that have been issued by the members of the Accreditation Chain.
What are Electronic Certificates of Origin?
Today, we hear many fraudulent practices happening here and there, daily so the authorities came up with a solution for the same. The authorities wanted to improve the supply chain security and safety of the entire system. So they introduced the concept of Online Certificates of Origin services as it offers a safe and secure trading environment to all the license holders.
This reduced the level of fraud in the system. One of the greatest benefits of the Electronic Certificates of Origin is that ensures transparency in the whole system which is what the user wants at the end of the day. When the Electronic Certificates of Origin entered the picture, things became a lot easier for the authorities as well as the license holders. This way, you save time and money.
In simpler terms, the Certificate of Origin is a testimony to the fact that the process of export obligation has been completed by the license holder in all prospects. Make it a point to have all your documents ready in your hand as the authorities can ask for any piece of the document at any time.
Keep a proper track of all your documents related to the process of export obligation as it will be very helpful for you in the times to come. A lot of your time, energy and effort will be saved.
Sudheer Varma Vegesna