Related Glossary
What is a Certificate of Origin?
A Certificate of Origin (COO) is an official document used in international trade that certifies the country in which goods were manufactured or produced. It serves as proof of origin and is often required by customs authorities in the importing country to determine tariff rates, trade preferences, or restrictions.
Key points
Proof of Origin: Confirms where the goods are made, not where they are shipped from.
Issued By: Typically provided by a Chamber of Commerce or other authorized body.
Trade Agreements: Helps importers claim preferential duty rates under Free Trade Agreements (FTAs).
Mandatory for Customs: Many countries will not allow goods to be cleared without a COO.
Types:
Non-Preferential COO: General certificate stating the country of origin.
Preferential COO: Used under trade agreements to avail reduced tariffs.
Example scenario
A textile exporter in India ships garments to Germany. Germany, being part of the EU, requires proof of where the goods were manufactured to apply correct customs duties. The exporter obtains a Certificate of Origin from the local Chamber of Commerce in India. The importer in Germany presents this COO to customs, which helps them verify the origin and apply the correct (or reduced) tariff rate under trade agreements. Without the COO, the goods may face higher duties or delays at customs.
Frequently Asked Questions (FAQs)
1. Who issues the Certificate of Origin?
Usually, it’s issued by Chambers of Commerce or government-authorized agencies in the exporting country.
2. Is COO the same as a Commercial Invoice?
No. A commercial invoice shows the value and details of the goods, while the COO specifically certifies the country of origin.
3. When is a COO required?
It’s needed when the importing country’s customs or the buyer asks for it, especially when goods are traded under special agreements or face restrictions.
4. How long is a COO valid?
It’s valid for the shipment it is issued for. Each export consignment typically requires a new COO.
5. Can exporters prepare a COO themselves?
Exporters can draft it, but it must be verified, stamped, and signed by an authorized issuing body to be valid.
Additional Insights
Digital COOs: Many countries now allow electronic COOs for faster clearance.
Related Terms: Commercial Invoice, Bill of Lading, HS Code, Free Trade Agreement.
Expert Tip: Always check the buyer’s requirements and the destination country’s trade regulations before shipping. Submitting the wrong COO type (preferential vs non-preferential) can cause customs delays or penalties.
Common Mistake: Confusing “country of origin” with “country of shipment.” They are not the same-origin is where goods are produced, not where they are exported from.