Certificate of origin

Certificate of origin
See also
Export declaration Export license Customs clearance Shipping note Import declaration Conditions of sale Customs house Ultimate consignee Value added tax

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.

Customs declarations are documents that are filled out by the importer or exporter of goods and submitted to the relevant customs authorities. These documents typically include information about the goods being imported or exported, such as their country of origin, value, and quantity. Customs officials use this information to determine the appropriate tariffs and taxes to apply to the goods, as well as to ensure compliance with any trade agreements or regulations.

The country of origin can also be determined through the use of certifications or labeling. For example, certain products may have a label or mark indicating that they were made in a specific country. Additionally, some countries have specific certification schemes in place to verify the country of origin of goods.

In some cases, the country of origin may be determined through the application of origin rules and trade agreements. For example, under the North American Free Trade Agreement (NAFTA), certain goods that are produced in Canada, Mexico, or the United States are considered to originate in that country, even if they are made using parts or materials from other countries.

In summary, the country of origin of goods can be established through various methods such as customs declarations, certifications, labeling, origin rules, and trade agreements. It's important to note that the determination of country of origin may vary depending on the laws and regulations of different countries and trade agreements.

References

• Willsher, R. (1995). Certificate of Origin. In Export Finance (p. 184-185). Palgrave Macmillan UK.

Author: Alicja Walusiak