A Certificate of Origin is a vital legal document issued to exporters of manufactured goods to verify the origin of the products. This certificate contains key details such as the manufacturer’s information, the location of production, and the goods’ destination. It serves as proof to customs authorities and trade partners, ensuring that the products meet trade agreements, import regulations, and tariff policies. By confirming the authenticity and traceability of goods, the Certificate of Origin supports fair trade practices and facilitates transparent and credible international trade transactions.
Types of Certificates of Origin
Certificates of Origin (COOs) are essential in global trade, though their forms are not universally standardized. They generally include key details about the product being shipped, such as a tariff code, and information about the exporter and importer.
Non-Preferential Certificate of Origin
This type of certificate is used when goods do not qualify for reduced tariffs or tariff-free treatment under any trade agreements between countries. It is required when there is no trade agreement between the exporting and importing countries or if the specific product being exported is not covered by tariff relief provisions.
Preferential Certificate of Origin
This certificate indicates that the goods are eligible for reduced tariffs or tariff-free treatment due to a free trade agreement or preferential trade agreement between countries. For instance, this includes trade agreements like the South Asian Free Trade Area (SAFTA) or the India-UAE trade agreement, where certain goods benefit from lower or zero tariffs.
Documents Required for Certificate of Origin
These are the list of documents required to procure certificates of origin for respective free trade agreements.
- • Digital signature certificate
- • Import export Code
- • Mobile No & Email Address
- Commercial Invoice
- Purchase bill with respective details
- • Manufacturer exporter declaration
- Product description
- • Purchase order from importer
Registration Process for Certificate of Origin
- Account Creation
Create an account on the DGFT portal or other authorized government portals using a Digital Signature Certificate (DSC) or similar credentials to initiate the application for the Certificate of Origin. - Documentation
Provide all necessary and valid documents with the application to establish the origin of your products. This includes details required to substantiate the manufacturing and source of the goods. - Verification & Authorization
The issuing authority will review the application and conduct a thorough inspection using a risk management system to verify and authenticate the origin of the product. - Certification
Upon successful verification and inspection, the Certificate of Origin will be issued to the applicant. The certificate must be in English and include all required information about the product and the exporting entity, in accordance with the rules under the CEPA agreement.
Benefits of Certificate of Origin
- Tariff Reduction
The certificate of origin enables exporters to benefit from reduced tariff rates or duty exemptions under various trade agreements or preference programs. This helps lower import costs and boosts competitiveness in international markets. - Compliance with Import Regulations
Many countries impose specific import regulations regarding labeling, packaging, and safety standards. The certificate of origin provides crucial details that prove compliance with these regulations, facilitating smooth customs clearance and preventing potential trade barriers. - Access to Trade Benefits
Beyond tariff reductions, some trade agreements offer additional benefits such as government incentives, subsidies, or quotas. The certificate of origin verifies eligibility for these extra advantages. - Authenticity and Traceability
This certificate confirms the authenticity of the goods’ origin, promoting transparency and traceability throughout the supply chain. It helps prevent counterfeiting, intellectual property violations, and unauthorized transshipment. - Trade Data Collection and Analysis
Certificates of origin aid in the collection of trade data, allowing authorities to monitor and analyze trade flows. This information is valuable for tracking market trends, assessing the impact of trade policies, and developing economic strategies.
Other Free Trade Agreements
India has expanded its market access commitments for neighboring service providers, offering opportunities for companies to develop market expertise and pursue international growth. Under various Free Trade or Preferential Trade Agreements, certificates of origin can be generated from India to facilitate import benefits for importing companies. These agreements include:
- ICPTA – India-Chile Preferential Trade Agreement
- SAFTA – South Asia Free Trade Agreement
- SAPTA – SAARC Preferential Trading Arrangement
- IKCEPA – India-Korea Comprehensive Economic Partnership Agreement
- IJCEPA – India-Japan Comprehensive Economic Partnership Agreement
- AIFTA – ASEAN-India Free Trade Agreement
- ISFTA – India-Sri Lanka Free Trade Agreement
- APTA – Asia-Pacific Trade Agreement
- GSP – Generalized System of Preferences
- GSTP – Global System of Trade Preferences
- IMCECA – India-Malaysia Comprehensive Economic Cooperation Agreement