Often abbreviated to C/O or COO, the certificate of origin is a document used in international trade . In a printed form or as an electronic document it is completed by the exporter and certified by a recognised issuing body, attesting that the goods in a certain exporting shipment have been produced, manufactured or processed in a specific country.
Overall a certificate of Origin is an important international trade document confirming that the goods in a particular shipment have been wholly obtained, produced, manufactured and processed in a particular country.
There are two major types of CO:
∙ Preferential CO: this type of certificate is issued to cover eligible exports for preferential tariff exemption of reduction under the free trade agreement, (FTA).
∙ Non-preferential CO: This type is issued for goods which do not enjoy preferential treatment.
Certificate of origins may be requested by importing countries, customs departments, importers, freight forwarders or banks to receive a letter of credit clearance.
Why do you need a certificate of Origin?
A certificate of Origin may be requested by your customer, from any country in the world, to establish the origin of goods being imported. Customs authorities may require this information so that duty payable can be determined and, in some cases, establish whether the goods may be legally imported at all. The origin is not the country from which the goods are shipped, but the country where the goods were made. Failure to have a correctly completed and certified Certificate of Origin can result in goods being held up by Customs authorities and can delay payment for your shipment in a case where you are supplying under a letter of Credit.
Why does a certificate of origin require import clearance and why does government insist for a certificate of origin as one of the required documents for import customs clearance?
As per government policies of each country from time to time, and the bilateral and unilateral business agreement between countries, the import duty may be exempted under the specified goods, from particular countries. Or as per availability and consumption goods, certain commodities are imposed import duty to control the import of such goods. Duties are also levied against the goods importing from certain countries because of political policies. So, the importance of certifying the origin of goods plays a vital role in the international trade between countries.
For businesses in trade, obtaining a Certificate of Origin might seem to be a complex process due to the documents required. By getting assistance from an agency that offer those services that handle the process on your behalf will not only save you time but make sure the process is done diligently and precise to avoid unnecessary problems.
When in doubt, consult the East Rand Chamber of Commerce, an official online website of Chambers of Commerce: https://chamberlink.co.za/