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Certificate of Origin: Meaning, types and benefits

Certificate of Origin (COO) is a document that verifies the country of origin for a shipment of goods. Learn more about its types, benefits, and the process to get it.

Determining the origin of products is vital in international trade as it helps countries impose tariffs, ensure compliance with trade regulations, and safeguard their markets. A Certificate of Origin (COO) is a document that verifies the origin of goods and provides essential information for trade purposes. Understanding the utility of COO can be beneficial for exporters seeking an efficient export process. This blog will cover what a COO is, its uses, types, and the steps required to obtain one.

What is a Certificate of Origin (COO)?

A Certificate of Origin (COO) is one such important document that certifies the products being exported were manufactured or processed in a specific country. In international trade, COOs are issued by authorized organizations, such as chambers of commerce, and are required by many countries with specific tariff regulations.

Types of Certificates of Origin

There are two primary types of COO:

Preferential COO

Preferential COO specifies that the products qualify for exemptions or reduced tariffs when exported to a country that extends these privileges. This COO is closely associated with regional trade agreements.

Non-preferential COO

Non-preferential COO is issued to comply with non-preferential rules of origin. It specifies the country of origin of the product but does not grant the exporter the right to receive preferential tariffs under trade agreements between countries.

Uses of Certificate of Origin

Some key uses of COOs in international trade are as follows:

Tariff calculation

Governments use COOs to calculate the right tariff based on country of origin.

Free trade agreement benefits

Some products may be exempt from tariffs if they are part of trade agreements and free trade agreements between countries. COOs verify whether a product qualifies for tariff concessions or not.

Import control

COOS assist in ensuring that products meet local legislation, safety details, and other standards.

Verification

COO confirms the origin of products for purchasers, mitigating scams and promoting transparency. This adds to the credibility of the product and the exporter.

Benefits of Certificate of Origin

Some key benefits of using a Certificate of Origin (COO) are as follows:

Legal compliance

Ensures adherence to international customs regulations, minimizing the risk of penalties.

Trade advantage

Enables reduced tariffs and taxes under applicable trade agreements.

Market access

Assists in market entry, as COO is mandatory for importing products into certain countries.

Customer trust

Assures buyers and suppliers of the genuine origin of products, reducing disputes and fostering trust.⁴

Documents required to obtain Certificate of Origin

The following are some key documents exporters must submit to obtain a COO:
● Completed application: Duly filled and signed COO application form.
● Commercial invoice: Commercial invoice provides details of the goods, price, and terms of sale.
● Packing list: Packing list provides information about packaging, number of packages, and weight.
● Notarized affidavit: A declaration from the exporter affirming that the goods meet origin requirements.
● Export license: Export license is required for controlled goods.
● Additional supporting documents: These vary based on the products and the importing country’s customs authority.⁵

Procedure to obtain Certificate of Origin

Certificates of Origin are issued by the Indian Chamber of Commerce (ICC) and the Trade Promotion Council of India.⁶ Exporters can obtain these through the DGFT Common Digital Platform for Issuance of Certificates of Origin. The steps below detail the registration and application process:

Upload the necessary documents

Submit the COO application

Step 1: Register on the DGFT portal

○ Visit the DGFT’s Common Digital Platform for Issuance of Certificates of Origin at https://coo.dgft.gov.in/.
○ Click on ‘Online Exporter Registration’.
○ Insert a Class 2 or Class 3 Digital Signature Certificate (DSC) containing the Importer Exporter Code (IEC).
○ Enter IEC, email, and mobile as per IEC details. Update contact info if needed.
○ Submit the registration request. Receive a password via email, then log in with IEC as the username.

Step 2: Upload the necessary documents

○ Log into the COO portal using IEC credentials.
○ Complete the application form.
○ Attach required documents like invoices and packing lists.
○ Attach the DSC to authenticate the application.

Step 3: Submit the COO application

○ Preview the application and verify details.
○ Make the payment and submit the application.
○ You will receive a confirmation notification over email and SMS.⁷

Contents of a Certificate of Origin

A typical COO contains the following details:

• Exporter information: Specifies the name and address of the exporter.
• Consignee details: Contains the buyer's name and address.
• Description of goods: Includes details such as the type, quantity, and weight of the goods.
• Country of origin: Indicates where the goods were manufactured or processed.
• Signature and stamp: Authorized by the competent authority or chamber of commerce.⁸

Role of Amazon Global selling in enabling e-commerce exports

Amazon Global Selling is an e-commerce exports program that helps exporters take their products from India to the world by listing on international marketplaces. With access to millions of customers shopping on Amazon international marketplaces across 200+ countries and territories, The program also provides latest tools and programs that simplify the process of obtaining export documents, shipping and delivering products to the customer in the USA, UK, UAE and Australia, among others. With FBA (Fulfillment by Amazon), all that sellers or exporters are required to do is ship their products to Amazon warehouses. Amazon packs and delivers the order to the customer.

Here’s a guide to exporting with Amazon Global Selling

Frequently Asked Questions

1. Who issues a Certificate of Origin?

A Certificate of Origin is issued by the Indian Chamber of Commerce (ICC) and the Trade Promotion Council of India (TPCI).

2. How long is a Certificate of Origin valid for?

From the date of issuance, COO is valid for 12 months.

3. When is a Certificate of Origin required?

COO is required to get clearance from customs before exporting goods from India. If this certificate is not obtained, the authorized officer will not permit the goods to leave the warehouse. Certain countries also list COO as a mandatory document required for entry of imported goods into the country.

4. What is the importance of a Certificate of Origin?

A Certificate of Origin is vital for international trade as it confirms the origin of goods, helping customs authorities apply the correct tariffs and ensuring compliance with trade agreements. This documentation enables exporters to access reduced tariffs and smooths out the import process for the buyer.

Published on May 16, 2022.

Sources:
1. https://www.freightright.com/kb/certificate-of-origin-coo
2. https://www.investopedia.com/terms/c/certificate-of-origin.asp
3. https://www.citrusfreight.com/resource/blog/what-is-a-certificate-of-origin-for-exports
4. https://www.bajajfinserv.in/certificate-of-origin
5. https://www.citrusfreight.com/resource/blog/what-is-a-certificate-of-origin-for-exports
6. https://cleartax.in/s/certificate-of-origin
7. https://www.indiafilings.com/learn/certificate-of-origin-coo-dgft-coo/
8. https://www.tradefinanceglobal.com/customs/certificates-of-origin/

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