What is certificate of origin? Who needs it?

Certificates of origin are documents that manufacturers provide to show the country of origin for their products. They’re also known as COs, COOs, or COGs.  You may be thinking:  What does any of that mean? And why does my company need a certificate of origin? 

If you’re reading this article, it’s likely you spend most of your time working in the import and export business. Even if you understand the basics about where goods come from, there is so much more to it than meets the eye. From regulations on which country can make what type of product to taxes on goods depending on their origin, there is a lot to consider when importing and exporting between countries. 

Let’s take a closer look at what a Certificate of Origin is, why you need one, and why you should get one before they become mandatory.

Certificate of Origin: What is it?

A Certificate of origin (or CO) is a document included with the shipment of goods, proving the place of origin of the product. The certificate is a legal mandate for imported goods, issued by the manufacturer or their representative and attesting that manufacturing took place in the stated country. 

This means that the certificate is issued without any third-party verification, so you need to trust that the person issuing it is truthful.

The certificate is used to prove that the imported goods are from a region or country that is permitted to export the given type of merchandise. 

The certificate must be issued on the official government form and contain the following information: 

• Name and address of the exporting company 
• Name and address of the importer 
• Description of the product 
• Quantity of merchandise
• Price per unit
• Port of loading 
• Place of delivery

Certificate of Origin: Why do you need one?

A certificate of origin is needed to prove that the imported goods are from a region or country that is permitted to export the given type of merchandise. 

There are two types of certificates: General and special. The general certificate is applicable to most products, while the special certificate is applicable to products that fall under a certain category. The general CO is used for commodities that don’t fall under any special category. 

The special CO is used for commodities that fall under one of the following categories: – Artwork – Fish and fish products – Plants and plant products – Textiles – Cereals – Seeds.

There are certain circumstances when you don’t need a CO: 

• If you are importing goods that are not listed in the special certificates 
• If you are importing fresh or frozen fish or fish products 
• If you are importing artwork 
• If you are importing goods from a country that is part of a free-trade agreement.

See also: How to apply for legal heir certificate in Maharashtra?

Certificate of Origin: Why are they becoming mandatory?

There are a few reasons why certificates of origin (COO) are mandatory in India. First, it is important for customs purposes, as it helps to ensure that only goods that are permitted to be imported into India are actually imported. 

Second, it is often used as a basis for determining the applicable tariff rate for imported goods. Without a COO, it would be more difficult for customs officials to accurately assess the proper tariff rate, which could lead to delays in clearing the goods for import. 

Finally, the CO serves as a valuable document for the importer, as it can be used to verify the authenticity of the goods and their country of origin. This can be helpful in the event that there are any problems with the goods after they have been imported.

Certificate of Origin: How to get one?

There are a couple of ways you can get a certificate of origin. If you work with a sourcing agent or representative, they may be able to get the COO for you and include it in their sourcing file. Your sourcing agent may have relationships with suppliers in various countries and be able to help you get the CO. 

If you source from a manufacturer directly, you will have to go through them to get the certificate of origin. Alternatively, you can use a third-party COO issuing company that can help you. When you get it, make sure it is valid for at least six months past the shipment date. You should also get a carbon copy of the certificate and keep it in your records. 

The certificate of origin should have all the information needed (see above) and should be signed by an authorised person. The COO can be issued in paper format, as a certified email, or as an official article on a website. The COO should be kept with the shipping documents to prove the origin of the goods.

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