Certificate of origin
Certificate of origin is a document used in international trade transactions. It is often required by customs house in some countries. It confirms that goods were produced in a country from which they were delivered. This document is obligatory in some countries and custom unions. An importer who possess certificate of origin can use lower tariffs and in case of war this document secures safe transport.
Rules of certificate of origin issue
Usually it is Chamber of Commerce that issues the certificate of origin. In practice, exported goods which were not produced in exporter's country can also get the certificate of origin if they were modify or transform there and their value enlarged more than 50%. Even the goods which were probably not produced in exporter's country, but they were on internal market for a long time can get this document. This information can be found on a certificate.
Every shipment of goods which is sent separately has its own certificate. Some countries have their own blank forms for certificate of origin.
How to establish the country of origin
The country of origin is established as follows:
- finished and half-finished goods - the country where they were produced,
- agricultural products - the country where they were grew, gathered or obtained,
- crops and transformed or modified goods - the country where they were modified or transformed, if the value of labour and materials used in this transformation is above 50% of the total value of these goods.
- the supplies of sea - the country of enterprise which fished or obtained these goods.
- Willsher, R. (1995). Certificate of Origin. In Export Finance (pp. 184-185). Palgrave Macmillan UK.
Author: Alicja Walusiak