The success of global trade relies significantly on accurate export documentation, especially when dealing with customs procedures. Among the most important documents in trade is the Certificate of Origin (CO), which provides proof of the origin at the border.

What is a Certificate of Origin?
A Certificate of Origin is a legally recognized document that declares the country of manufacture for shipped goods. It helps border officials to determine the applicable tariff rate.

Its relevance isn’t limited to taxes. Without the correct CO, approval by customs can become delayed, causing costly delays or penalties.

The Importance of COs in Exporting
COs provides multiple benefits in international trade, including:

Customs Clearance: COs assist customs authorities to verify import duties and facilitate shipment clearance.
Preferential Duty Treatment: If goods qualify under trade pacts such as the USMCA or the European Union, the CO ensures lower import duties.
Meeting Legal Obligations: Specific goods cannot be imported unless accompanied by a CO.
Building Trust with Buyers: Buyers might require COs to confirm the origin of certified goods.
CO Variants
There are two primary types of COs, serving different functions:

Non-Preferential Certificate of Origin: This document declares that goods are not eligible for reduced tariffs. It is used when standard duty rates are applicable.
Preferential Certificate of Origin: Certifies that the products are eligible under special agreements like USMCA, which permit reduced or zero duties.
Who Issues Certificates of Origin?
Several authorities can provide COs, including:

Chambers of Commerce: They specialize in issuing official COs.
Customs Departments: In some countries, customs issue COs directly.
Industry Associations: Specific trade industries issue COs for products like food or chemicals.
Steps to Obtain a Certificate of Origin
Below is the process for obtaining a CO:

Prepare Documentation: Exporters must assemble evidence, such as invoices and production records.
Apply with Issuing Authority: Provide shipment details, such as HS codes.
Verification Process: The issuer examines the submission for accuracy.
Issuance of CO: You receive the certified CO either electronically or on paper.
Digitizing COs for Faster Trade
Many countries have switched to eCOs, streamlining the export procedures.

Benefits of eCOs:

Speedier here customs processes
Lower processing fees
Secure storage
Paperless trade option
Frequently Asked Questions (FAQ) about COs
Is a CO required for all shipments?
A: No, not always. Some countries only require COs for certain products.

Is it possible to self-certify?
A: No, only authorized bodies can issue COs.

What’s the processing time?
Processing time varies based on the issuing body.

Conclusion
COs play a vital role in ensuring compliance and securing trade benefits. Whether using paper or digital formats, exporters must understand how to obtain them correctly.