Certificate of Origin Discrepancies

The certificate of origin verifies the country in which the goods to be exported were originally manufactured. Discrepancy can be defined as an error, that is determined by the banks in letter of credit transactions. On this post, you can find most common certificate of origin discrepancy examples.

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Certificate of Origin can be regarded as an official document. The certificate of origin could be issued on paper or electronic form.

The certificate of origin verifies the country in which the goods to be exported were originally manufactured.

Although the certificate of origin could be issued by an exporter without requiring any additional certification, in most cases, the customs office in the importing country requires a certificate of origin to be issued either by

  • the chamber of commerce (Ordinary Certificates of Origin) or
  • custom authorities (Preferential Certificates of Origin).

Letter of credit rules allow presentation of all types of certificates of origin.

On this page, you can find most common certificate of origin discrepancies under letter of credit transactions.

Certificate of Origin Discrepancies

Important Definitions Regarding the Certificate of Origin

  • According to UCP 600, latest letter of credit rules, and international standard banking practices a certificate of origin should be issued by the entity specified in the letter of credit.
  • When a letter of credit does not state the name of an issuer of the certificate of origin, any institution could issue a certificate of origin.
  • When a credit requires the presentation of a certificate of origin, this will be satisfied by the presentation of a signed document that appears to relate to the invoiced goods and certifies their origin.
  • When a letter of credit demands the presentation of a specific form of certificate of origin such as a EUR1, ATR or GSP Form A, only a document in that specific form is to be presented. For example if credit calls for a EUR1, beneficiary can not present an ordinary certificate of origin issued by the chamber of commerce.
  • Consignee information, when shown, is not to conflict with the consignee information in the transport document. However, when a credit requires a transport document to be issued “to order”, “to the order of shipper”, “to order of issuing bank”, “to order of nominated bank (or negotiating bank)” or “consigned to issuing bank”, a certificate of origin may show the consignee as any entity named in the credit except the beneficiary.
  • When a credit has been transferred, the first beneficiary may be stated to be the consignee.
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