written by | May 10, 2022

Certificate of Origin – Issuing Authority, Importance, Types and Procedure

A Certificate of Origin (coo) is a document that declares the country in which makes a product or service. The Certificate of Origin includes information about the product, its destination, and the export country. A good can be labelled "Made In the USA" or even "Made In China."

Many international trade treaties require the coo, and it can determine whether certain goods are allowed to be imported or subject to duties. Before you place your orders, we recommend that you contact the authorities in your area to help you classify your commodities. This will allow you to know what duty your government will charge for your cargo when it is imported.

Did you know?

To regularly avail of a Certificate of Origin from the Indian Chamber of Commerce (ICC), you need to fill out ICC a (PPI) on a Non-judicial paper with the stamp of only ₹10.

Also Read: Exporting from India: What You Need to Know

Explain Certificate of Origin Meaning

The exporter is particularly interested in this document as it confirms the official place of origin of the merchandise. In short, the CA affirms that contents in a consignment ensure that the items purchased, made, or processed within the same country are completely purchased. Every country needs to be aware of the real origin of the merchandise they accept. This determines the value of customs duties and knows whether they can ship legally to their destination.

The most important aspect here is that the source of the product originates from the manufacturing country. This does not pertain to the nation from where the products are coming to their final destination. In simple words, if the process of making one product is performed in more than two countries, there's an additional catch. The destination country will be believed to be where the final word or economically rational process is carried out.

Usually, when determining the origin country, you may get guidance based on percentage. When 50% of the expense of making goods is borne by one nation while that country's "national wages" is over 50%, that country is the origin country.

There are two primary types of certificates of authenticity, and the cameras determine what type of certificates to award following the country. The different types of certificates include:

  • A priority Certificate of Origin is a form of certification that states that the product has benefits. This means they are exempt from reduced rates and other export preferences in some countries. The species is rare. It is possible to force commanders to adhere to letters of credit and foreign customs regulations or the buyer's demand.

  • Non-preferential Certificates of Origin are also referred to as "ordinary documents for origin." They are usually issued to identify products that do not receive preferential treatment. It is contingent on the country from which the product originated.

What is the Significance of the Certificate of Origin?

The origin certificate plays a crucial role in transporting items across borders. You can use it as evidence of the country where the product was made. Ensuring that the country of origin is clear and without manipulative attempts is crucial.

If it is obvious which country the goods originate from, the imposition of duties or exemption of the product becomes easy. Additionally, the ability to import goods is crucial. Certain countries do not permit some goods, and there is a serious penalty if you don't follow these details.

That's why many parties are participating in international trade and disclosing the country of origin for the products. Officials and consumers who deal with transportation want to know the country of origin for each item.

Most of the time, buyers only require certification from the chamber of commerce. However, in some cases, he may be eligible to use the Generalised System of Preferences (GSP) established in some countries. An exact copy of the invoice for commercial transactions must also be available with the certification in granting the certification.

When is a Certificate of Origin Needed?

A mandatory requirement for issuing a Certificate of Origin occurs when the products are exported from a particular country. Anyone who wants to conduct business on foreign markets must adhere to this condition. There is no requirement for a certification to be accessible to nearby cities or even the country.

As with all documents such as a Certificate of Origin, the document has certain rules. The issue is that every country has its own rules, and the importer from the country of destination should be aware:

  • Some countries are happy with their Declaration of Origin. It is possible to print it on the letterhead of a company. This should be enough for some locations.
  • There are other nations with more strict rules. The Certificate of Origin needs notarisation. A sign must be presented there by a local Chamber of Commerce, with the authorisation of the Department of Commerce in which it's present—this entire procedure in various countries within the Middle East.

Also Read: Importing from China to India: All You Need to Know

The Certificate of Origin is Issued by Whom?

Alliance is the person who issued this certificate. The Alliance produces coo for goods that the United States has. If not, the certificate is not valid. It is already evident that it certifies the origin country of the item or product that they inspect. This is necessary when the country of origin or importer has a requirement to issue the coo. The coo is crucial in customs because it determines if goods are preferential or not.

How Do I Get a Certificate of Origin?

  • Please visit the official website of the government by clicking on https://coo.dgft.gov.in/.
  • In "Online Services" under the tab, click "Online Exporter Login."
  • Input in your IEC number as your username and password.
  • Click Online Application to get a Certificate of Origin.
  • If you successfully log in using valid credentials, you'll see a new window. There is the option to launch a new application.
  • Choose the type of Certificate of Origin you want to apply to from the listing of preferential and non-preferential certificate types.
  • First, fill in the necessary details like the type of coo Issuing Agencies, Free Trade Agreement type, State, State Regional offices, issuing office, etc.
  • In the case of a preferential coo, A Certificate of Origin is issued upon the shipment's export, for which India gets tariff preference based on the trade agreement that was signed by two or more countries.
  • A preferential Certificate of Origin is important to export to countries as part of the trade agreements.
  • The preference Certificate of Origin (coo) is also a trade agreement you're applying for the certificate.
  • Once you get the coo under the Asian (AIFTA), you can refer to it by AIFTA coo or Form AI Certificate of Origin.
  • In the same way, you can call it APTA coo if you get the Certificate of Origin in the Asia Pacific Trade Agreement (APTA).
  • The details about the exporter, like the name of the exporter's address, country and name, must be there.
  • The importer's details like the name of his address, importer and country are essential for you to complete. The product's description must also be crucial with the correct HS Code.
  • Upload the document's information, such as Invoice copy and shipping bill, bill of Lading/Airway, packing list, etc. Uploading a copy of your invoice will be mandatory.
  • Suppose you agree to the Terms and Conditions set forth on the Declaration page. Fill in the Name, Place and Designation and then complete the application with the help of a digital signature. Send the application to the designated agencies after paying fees to the government fee.

Here, we complete the procedure to issue a Certificate of Origin online.

Conclusion

The Certificate of Origin is an essential element in trade between two countries. However, there is no one-issue standard anywhere, and world trade doesn't have a standard. Although, one thing is certain: it must contain basic information about the product, including country of origin, exporter/importer, customs code, etc.

Some products have special preferences or exemptions from duty, and other countries don't have such regulations. Exporters should know the requirements for border control in each country, and the destination of the goods will determine the specific requirements.

The exporter must provide all necessary information to the Chamber of Commerce and then send the completed shipment form to the coo. Another important step, we suggest you keep the payment transaction online as much as possible. It'll help you eliminate the daunting task of calculations to know the benefit or loss in your business easily.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: What are various types of Certificates of Origin?

Ans:

Types of Certificates of Origin are as follows:

  • GSP
  • APTA
  • ISLFTA
  • GSTP
  • SAPTA
  • CEPA
  • IJCEPA
  • IMCECA
  • ASEAN-India Free Trade Agreement
  • Indo-Thailand Free Trade Agreement

Q: Is it possible to get a Certificate of Origin online?

Ans:

Yes, you can get a Certificate of Origin online by visiting this link -

https://coo.dgft.gov.in/users/login?type=ZXhwb3J0ZXI%3D.

Q: Certificate of Origin Is issued by whom?

Ans:

The Trade Promotion Council of India and the Indian Chamber of Commerce issue the Certificate of Origin.

Q: What is a Certificate of Origin for export?

Ans:

A Certificate of Origin (coo) is a vital international trade document. It certifies that products in a specific export shipment are entirely obtained, produced, processed or manufactured in one particular country. They declare the goods' nationality and play a role as a statement by the exporter to satisfy trade or customs needs.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.