{"id":1309,"date":"2018-04-20T06:06:52","date_gmt":"2018-04-20T10:06:52","guid":{"rendered":"http:\/\/www.letterofcredit.biz\/?p=1309"},"modified":"2021-04-18T08:54:37","modified_gmt":"2021-04-18T12:54:37","slug":"certificate-of-origin","status":"publish","type":"post","link":"https:\/\/www.letterofcredit.biz\/index.php\/2018\/04\/20\/certificate-of-origin\/","title":{"rendered":"Certificate of Origin"},"content":{"rendered":"<p>A Certificate of Origin (often abbreviated to CO, C\/O, COO) is a trade document, which identifies the origin of goods that is being exported and required by almost all of the export and import shipments in international trade.<\/p>\n<p>Certificate of origin is a document used in international trade transactions, certifies that goods in a particular export shipment are originated in a particular country either by <span style=\"color: #ff6600;\"><em>wholly obtained principle<\/em><\/span> or <span style=\"color: #ff6600;\"><em>substantial transformation principle<\/em><\/span>.<\/p>\n<h4><strong>What are the Functions of a Certificate of Origin in Export \/ Import Transactions?<\/strong><\/h4>\n<p>Certificates of origins are requested by the importing country administrations for the following reasons:<\/p>\n<ol>\n<li>Determining whether or not the goods being imported are eligible for any preferential custom tariffs,<\/li>\n<li>Determining the\u00a0exact import customs duties to the goods,<\/li>\n<li>Determining whether or not the goods come from a country against which the importing country has trade restrictions.<\/li>\n<\/ol>\n<h4><strong>What are the Types of Certificates of Origin?<\/strong><\/h4>\n<p>Certificates of origin can be classified under two main groups:<\/p>\n<p><a href=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/types-of-certificates-of-origin.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-1323\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/types-of-certificates-of-origin.png\" alt=\"types of certificates of origin\" width=\"519\" height=\"331\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/types-of-certificates-of-origin.png 519w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/types-of-certificates-of-origin-300x191.png 300w\" sizes=\"(max-width: 519px) 100vw, 519px\" \/><\/a><\/p>\n<p><strong>Ordinary Certificates of Origin:<\/strong> An Ordinary certificate of origin is a document that can be used to satisfy importing country\u2019s custom authorities that the products exported are originated in a specific country.<\/p>\n<p>Ordinary certificates of origin do not grant any preferential tariff treatment during the importation of goods.<\/p>\n<p><strong><span style=\"color: #ff0000;\">Issuing Bodies of Ordinary Certificates of Origin:<\/span><\/strong> Ordinary certificates of origin can be issued and certified by chambers of commerce, chambers of industry and chambers of commerce and industry.<\/p>\n<p>In some occasions exporting companies can also prepare ordinary certificates of origin by themselves in a separate document form or adding a statement on this effect on to the commercial invoices.<\/p>\n<p>Ordinary certificates of origin do not need any endorsement or legalization from the custom authorities.<\/p>\n<p><strong>Preferential Certificates of Origin:<\/strong> Preferential Certificates of Origin likely to grant reduced or zero rates of custom duty when export goods are entering into importer\u2019s country as a Preferential Certificate of Origin (PCO) proves that the product originates from a Free Trade Agreement Partner Country under stipulated Rules of Origin (ROO) and hence, qualifies the product for tariff concessions provided under the specific FTA.<\/p>\n<p><span style=\"color: #ff0000;\"><strong>Issuing Bodies of Preferential Certificates of Origin:<\/strong><\/span> Preferential certificates of origin must be issued and authorized by the customs or any other organization that is entrusted by the government in the exporting country.<\/p>\n<h4><strong>Some Examples of Preferential Certificates of Origin:<\/strong><\/h4>\n<ul>\n<li>Certificate of Origin GSP Form A<\/li>\n<li>North American Free Trade Agreement (NAFTA) Certificate of Origin<\/li>\n<li>EUR1 Form Movement Certificate<\/li>\n<li>ATR Movement Certificate<\/li>\n<\/ul>\n<h4><strong>How to Use Certificates of Origin in Letters of Credit Transactions:<\/strong><\/h4>\n<p>Letter of credit rules do not cover certificates of origin under specific articles, unlike transport and insurance documents; as a result certificates of origin will be treated like any other ordinary document under the letter of credit rules.<\/p>\n<p>This having been said, we need to emphasize that the specific requirements regarding the certificates of origin must be indicated in the letters of credit by the issuing banks.<\/p>\n<ol>\n<li>If no specific requirement exists in the letter of credit for the certificates of origin, then the presentation of a certificate of origin will be satisfied by the presentation of a signed document that appears to relate to the invoiced goods and certifies their origin.<\/li>\n<li>When a credit requires the presentation of a preferential certificates of origin such as a Certificate of Origin GSP Form A or EUR1 Form Movement Certificate, only a document in that specific form should be presented by the beneficiary.<\/li>\n<li>A certificate of origin should be issued by the entity stated in the credit such as Chamber of Commerce, Chamber of Industry, Customs Authorities etc.<\/li>\n<\/ol>\n<h4><strong>Certificates of Origin Samples:<\/strong><\/h4>\n<p><span style=\"color: #ff0000;\"><strong>Ordinary Certificate of Origin:<\/strong><\/span><\/p>\n<p><a href=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/certificate-of-origin.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-1316\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/certificate-of-origin.png\" alt=\"certificate of origin\" width=\"942\" height=\"1396\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/certificate-of-origin.png 942w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/certificate-of-origin-202x300.png 202w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/certificate-of-origin-768x1138.png 768w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/certificate-of-origin-691x1024.png 691w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/certificate-of-origin-696x1031.png 696w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/certificate-of-origin-283x420.png 283w\" sizes=\"(max-width: 942px) 100vw, 942px\" \/><\/a><\/p>\n<p><span style=\"color: #ff0000;\"><strong>EUR1 Certificate of Origin:<\/strong><\/span><\/p>\n<p><a href=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/eur1-certificate-of-origin.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-1317\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/eur1-certificate-of-origin.png\" alt=\"eur1 certificate of origin\" width=\"546\" height=\"777\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/eur1-certificate-of-origin.png 546w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/eur1-certificate-of-origin-211x300.png 211w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/eur1-certificate-of-origin-295x420.png 295w\" sizes=\"(max-width: 546px) 100vw, 546px\" \/><\/a><span style=\"color: #ff0000;\"><strong>Nafta Certificate of Origin:<\/strong><\/span><\/p>\n<p><a href=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/nafta-certificate-of-origin.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-1318\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/nafta-certificate-of-origin.png\" alt=\"nafta certificate of origin\" width=\"603\" height=\"783\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/nafta-certificate-of-origin.png 603w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/nafta-certificate-of-origin-231x300.png 231w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/nafta-certificate-of-origin-323x420.png 323w\" sizes=\"(max-width: 603px) 100vw, 603px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Certificate of Origin (often abbreviated to CO, C\/O, COO) is a trade document, which identifies the origin of goods that is being exported and required by almost all of the export and import shipments in international trade. Certificate of<\/p>\n","protected":false},"author":1,"featured_media":6682,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[159,150],"tags":[135,162],"class_list":["post-1309","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-certificate-of-origin","category-letter-of-credit-documents","tag-certificate-of-origin","tag-letter-of-credit-documents","post_format-post-format-video"],"_links":{"self":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts\/1309","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/comments?post=1309"}],"version-history":[{"count":0,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts\/1309\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/media\/6682"}],"wp:attachment":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/media?parent=1309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/categories?post=1309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/tags?post=1309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}