Certificate of Origin

22/12/2020 0 By indiafreenotes

A Certificate of Origin Declaration of Origin (often abbreviated to C/O or CO or DOO) is a document widely used in international trade transactions which attests that the product listed therein has met certain criteria to be considered as originating in a particular country. A certificate of origin / declaration of origin is generally prepared and completed by the exporter or the manufacturer, and may be subject to official certification by an authorized third party. It is often submitted to a customs authority of the importing country to justify the product’s eligibility for entry and/or its entitlement to preferential treatment. Guidelines for issuance of Certificates of Origin by chambers of commerce globally are issued by the International Chamber of Commerce.

A certificate of origin (CO) is a document declaring in which country a commodity or good was manufactured. The certificate of origin contains information regarding the product, its destination, and the country of export. For example, a good may be marked “Made in the India” or “Made in China”.

Issuer of a Certificate of Origin

A Certificate of Origin is issued by both the Indian Chamber of Commerce as well as 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. Millions of Certificates of Origins are issued around the world to facilitate trade and commerce worldwide.

A Certificate of Origin must be signed by the exporter with a permanent indemnity bond on a non-judicial stamp paper of Rs 10, duly notarised (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.

Types of Certificate of Origin

There are two kinds of Certificate of Origin that Chambers of Commerce may issue:

  1. Non-preferential Certificate of Origin: This type of Certificate of Origin states that the goods being exported/imported are not given any preferential tariff treatment and the due duties must be levied upon the goods that are being moved.
  2. Preferential Certificate of Origin: This type of Certificate of Origin is given towards goods that are subject to preferential tariff treatment in the payment of duties. These duties may be a reduction of the normal tariff, or it 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.

These are the following schemes under which India receives tariff preferences:

  1. Generalised System of Preference (GSP): This system is implemented to support developing countries by giving them preference in trade tariffs from industrialised and developed countries. It is a non-contractual instrument that is unilateral and is based on a non-reciprocity extension of tariff concessions.
  2. Global System of Trade Preference (GSTP): This system extends tariff concessions between developing countries who are parties to an agreement. Export Inspection Council (EIC) has the sole authority to issue Certificate of Origin under GSTP.
  3. SAARC Preferential Trading Agreement (SAPTA): Tariff concession extends only to countries in SAARC.
  4. Asia-Pacific Trade Agreement (APTA): Presently, India, China, South Korea, Sri Lanka and Bangladesh exchange tariff concession under APTA. APTA offers liberalisation of tariff and non-tariff barriers in order to expand trade in goods in the Economic and Social Commission for Asia and Pacific (ESCAP) region.
  5. India-Sri Lanka Free Trade Agreement (ISLFTA): This agreement is a free trade agreement between India and Sri Lanka. Under this agreement, EIC has the sole authority to issue Certificate of Origin.
  6. Indo-Thailand Free Trade Agreement: This agreement between India and Thailand is to implement the Early Harvest Scheme where products under this protocol are given tariff preference. Early Harvest Scheme under India-Thailand Free Trade Agreement offers tariff preferences for imports on items, which satisfy Rules of Origin criteria notified by the Department of Revenue, Ministry of Finance vide notification no. 101/2004-Customs dated 31.08.2004. Export Inspection Council is the sole agency to issue Certificate of Origin under this protocol.
  7. India-Malaysia Comprehensive Economic Cooperation Agreement (IMCECA): This is an agreement between India and Malaysia and the EIC has the sole authority to issue Certificate of Origin.
  8. India-Korea Comprehensive Economic Partnership Agreement (CEPA): India and South Korea (Republic of Korea) signed the Comprehensive Economic Partnership Agreement (CEPA) to expand the business and commercial opportunities between these two countries. EIC has the sole authority to issue Certificate of Origin under this agreement.
  9. India-Japan Comprehensive Economic Partnership Agreement (IJCEPA): This agreement is between India and Japan to improve and protect investments made between the two countries. Under this agreement, the EIC has the sole authority to issue Certificate of Origin.
  10. ASEAN-India Free Trade Agreement: This agreement is between India and Japan to improve and protect investments made between the two countries. Under this agreement, the EIC has the sole authority to issue Certificate of Origin.

Documents to be submitted along with application for Procurement of Certificate of Origin

  • A covering letter (on Original Letterhead) addressed to the Director General, Indian Chamber of Commerce, for issue of a Certificate of Origin / Certification of copies of Invoices / Packing List etc.
  • In case of submission by Authorized Signatory attested copy of authorization letter must be attached.
  • Completed Certificate of Origin Form Plus (one additional copy for our records). Blank Certificate of Origin Forms must be purchased from ICC at a cost of Rs 70/- per set of 50 pc.
  • Along with Invoice, Packing List, Letter of Credit or Purchase Order or E-mail order (whichever is relevant) all the documents must be stamped and signed by the Exporter Applicant.
  • In case of goods which have been imported prior to being exported to another country, relevant clearance certificates from Customs Dept must be submitted to show that the goods entered the country legally after payment of all necessary taxes and duties.
  • The exporter must submit an additional set of documents for ICC records with each application for Certificate of Origin.

Cost of issuing Certificate of Origin will depend on the number of pages submitted.

Documents received by 4 pm will be processed the same day.