A certificate of origin is a legal document that is issued by an exporter of manufactured goods to verify the origin of the product. It includes important information such as the manufacturer’s details, the location where the goods were produced, and the intended destination of the commodities.
This document serves as proof to customs authorities and trade partners, ensuring compliance with trade agreements, import regulations, and tariff policies. It plays a vital role in verifying the authenticity and traceability of goods, promoting fair trade practices, and facilitating international trade transactions with transparency and credibility.
Certificates of origin (COOs) used in global trade do not have a standardized format. However, they typically include essential information about the shipped product, such as a tariff code, details of the exporter and importer, and the country of origin.
Classification of certificate of origin (COO)
A non-preferential certificate of origin (COO) is used to declare that goods being exported do not qualify for reduced or free tariffs under any trade agreements between countries.
An ordinary COO is required if the exporting country does not have a trade agreement with the importing country, or if the specific product being shipped is not eligible for tariff relief.
Preferential Certificates of Origin are documents that show that goods have been produced in a country that is party to a free trade agreement. This can help to reduce tariffs on the goods when they are imported into another country that is party to the agreement. For instance, exports between India and the United Arab Emirates under the SAFTA trade agreement would be eligible for reduced tariffs if they are accompanied by a Preferential Certificate of Origin.
Here is a list of documents required to obtain certificates of origin for respective free trade agreements:
The IUCEPA registration fee is ₹3,200, including professional fees. The registration is valid for up to 12 months from the date of issuance. Exporters can apply for a reissue of the certificate of origin or CEPA registration once the validity period has expired.
The fee can be breakdown into the following:-
Particulars | Fees |
---|---|
Govt Fee | ₹736 per invoice |
One time creation fee | ₹ 500 |
Professional Fee | ₹1700 |
Total Fee | ₹2936 |
Validity of CEPA | 12 months from the date of issuance |
A product will be considered to have come from a contracting nation and be eligible for preferential treatment if it meets the following criteria:
Wholly Obtained Or Produced Products such as
Note:-Exporters must provide a certificate of origin for their goods in order to confirm their authenticity, in accordance with the agreed trade agreement between the parties concerned.
Tariff Reduction: A certificate of origin is a document that proves the country of origin of a product. It can help exporters qualify for preferential tariff rates or duty exemptions under trade agreements or preference programs. This can reduce the cost of importing goods and make them more competitive in foreign markets.
Compliance with Import Regulations: Many countries have their own import regulations, which may include labeling, packaging, or safety standards. A certificate of origin provides the necessary information to demonstrate compliance with these requirements, ensuring smooth customs clearance and avoiding potential trade barriers.
Access to Trade Benefits: Some trade agreements or programs may provide additional advantages beyond tariff reduction, such as access to government incentives, subsidies, or quotas. The certificate of origin is a document that proves eligibility for these benefits.
Authenticity and Traceability: A certificate of origin is a document that verifies the country where goods were produced. It provides transparency and traceability in supply chains, helping to combat counterfeiting, intellectual property infringements, and unauthorized transshipment.
Trade Data Collection and Analysis: Certificates of origin help in collecting trade data, which allows authorities to track and analyze trade flows. This data is useful for monitoring market trends, evaluating the effectiveness of trade policies, and developing strategies for economic development.
It takes around 3-5 days to get IUCEPA Registration
The govt fee for IUCEPA application is 736 INR per invoice and one time registration fee is 500 Rs
Import-export code is an essential requirement for all kinds of import-export businesses in India.
The certificate of origin is issued by the DGFT