A certificate of Origin is an important document that establishes evidence on the origin of goods imported into any country. The Certificate of Origin carries many other information points, such as the product’s details, its destination, and the export countries. It is a necessary document for export or cross-border trade, as agreed upon by trade agreements and treaties by nations.
- These certificates are essential for exporters to prove where their goods come from and therefore stake their claim to whatever benefits goods of Indian origin may be eligible for in the country of exports.
- The main requirement for a Certificate of Origin is for clearing customs. If the goods, exported/imported, do not come with a Certificate of Origin, the Customs officer tasked with checking the goods will not allow the goods to leave the warehouse.
- The Customs officer uses the Certificate of Origin to determine the duties that must be paid and to check whether the goods exported/imported are illegal.
- A certificate of Origin is mainly needed to check whether the goods being exported/imported are legal and whether such export or import is subject to duties.
Non – Preferential Certificate of Origin states that the goods being exported are not given any preferential tariff treatment, and the due duties must be levied upon the goods being moved.
A Preferential Certificate of Origin is given to goods subject to preferential tariff treatment in the payment of duties. These duties may be a reduction of the standard tariff, or they also may be a complete exemption of the tariffs. Such a situation arises when two or more nations reach a trade agreement entailing such exemptions when goods are exported or imported between these nations.
A Certificate of Origin is issued by the Indian Chamber of Commerce and the Trade Promotion Council of India. This certificate issued by these two bodies is essential for exporters in India to prove that the commodities being exported are of Indian origin.
- It also proves that the commodity exported is wholly obtained, manufactured, or produced in India.
- The exporter must sign a Certificate of Origin with a permanent indemnity bond on a non-judicial stamp paper of Rs 10, duly notarized (format for Indemnity Bond is available with the Certificate of Origin Dept).
- The certificate must also be signed and stamped by the Chamber of Commerce or any other authority with such qualification. It is the most commonly used document to prove the origin of goods
Certificate of Origin (COO) for exports from India under the following trade agreements are already being applied and issued through the e-platform.
- ICPTA – India Chile Preferential Trade Agreement
- SAFTA – South Asia Free Trade Agreement
- SAPTA – SAARC Preferential Trade Agreement
- IKCEPA – India Korea Comprehensive Economic Partnership Agreement
- IJCEPA – India Japan Comprehensive Economic Partnership Agreement
- AIFTA – ASEAN India Free Trade Agreement
- ISFTA – India Sri Lanka Free Trade Agreement
- APTA – Asia Pacific Trade Agreement
- GSP – Generalized System of Preferences
- GSTP – Global System of Trade Preferences
- IMCECA – India Malaysia Comprehensive Economic Cooperation Agreement
- ISCECA – India Singapore Comprehensive Economic Cooperation Agreement
- IUCEPA – India-UAE Comprehensive Economic Partnership Agreement
- India-Mercosur Preferential Trade Agreement
- India-Thailand Early Harvest Scheme
- India- Australia Economic Cooperation and Trade Agreement ( ECTA)
Benefits:
- a) Customs authorities gain access to information about the security and traceability of goods entering for home consumption. In addition, they can determine taxes and duties payable on import.
- b) Exporters and importers get quick and easy customs clearance when they have a legitimate certificate of origin along with other necessary documents. As a result, all the parties involved in the transaction become more productive.
- c) A certificate of origin (CO) records the country of origin that an imported good has come from.
- d) The Certificate of Origin is often mandated by importing countries and included in trade agreements, as it is used to levy the appropriate import tax, if any apply.
- e) A Certificate of Origin can exist either in paper or digital format and must be approved by the requisite chamber of commerce or customs authority.
- f) Preferred Certificate of Origin’s are abbreviated versions that are only used in the presence of a free trade agreement or treaty.
