The success of global trade depends heavily on accurate export documentation, especially when dealing with customs procedures. A key document in international trade is the Certificate of Origin (CO), which certifies of the origin for government authorities.

The Role of a Certificate of Origin in Trade
A country of origin certificate is an essential form that confirms the source for shipped goods. COs assist border officials to determine the appropriate import tax.

Its relevance isn’t limited to taxes. Without the correct CO, approval by customs might be hindered, affecting the shipment's success.

How COs Benefit Exporters and Importers
COs provides multiple benefits in international trade, including:

Customs Clearance: COs assist customs authorities to verify import duties and facilitate shipment clearance.
Tariff Reductions under Trade Agreements: When products meet the terms under trade pacts such as the USMCA or the European Union, this certificate guarantees reduced tariffs.
Compliance with Import Regulations: Specific goods may not enter a country without a CO.
Quality Verification: Buyers often request COs to confirm the origin of premium goods.
Categories of COs
There are two primary types of COs, each with a distinct purpose:

Non-Preferential Certificate of Origin: This document declares that goods are not eligible for trade benefits. It applies when standard tariffs are applicable.
Preferential Certificate of Origin: Certifies that the products qualify for special agreements such as USMCA, which permit tariff exemptions.
Issuers of Certificates of Origin
Various entities can provide COs, including:

Chambers of Commerce: They specialize in issuing official COs.
Customs Departments: Certain customs offices issue COs as well.
Industry Associations: Specific trade industries issue COs for niche markets.
How to Apply for a CO
These are the procedures for obtaining a Certificate of Origin:

Gather Required Papers: The exporter needs to collect supporting documents, such as invoices and production records.
Submit Application: Provide shipment details, including product descriptions.
Review and Approval: The issuer examines the submission for completeness.
Issuance of CO: The CO is issued via eCO or hard copy.
The Rise of eCOs
Many countries have switched to eCOs, simplifying the workflow.

Benefits of eCOs:

Speedier customs processes
Reduced costs
Secure storage
Paperless trade option
Common Questions Regarding COs
Q: Do I need a CO for every shipment?
It depends on the destination and the type of goods.

Q: Can I issue my own CO?
A: No, only authorized bodies can issue COs.

What’s the processing time?
A: Typically, it takes a few hours to a couple of days.

Wrapping Up
COs are essential in ensuring compliance and securing trade benefits. Whether using paper or what is certificate of origin digital formats, exporters must understand how to obtain them correctly.