Certificate of origin

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 November 2011 1. Who(in India) are the designated authority to issue country of origin certificate for export?
2. Can one(having IEC) buy goods from open market and export out of India? What is the procedure for export for a merchant exporter?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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30 November 2011 A Certificate of Origin (often abbreviated to CO or COO) is a document used in international trade. It traditionally states from what country the shipped goods originate, but "originate" in a CO does not mean the country the goods are shipped from, but the country where the goodtion problem in cases where less than 100% of the raw materials and processes and added value are not all from one country. An often used practice is that if more than 50% of the cost of producing the goods originate from one country, that country is acceptable as the country of origin (then the "national content" is more than 50%). In various international agreements, other percentages of national content are acceptable. This document has a dedicated equivalent for the (international) trade in the economic service of electricity called Guarantee of origin.

When countries unite in trading agreements, they may allow Certificate of Origin to state the trading bloc as origin, rather than the specific country.

The document may be issued by the exporter or be confirmed by another party in the exporting country, such as a notary, a chamber of commerce, or a local consulate of the destination country. In many cases specific government-issued documents are required, such as for shipments under the North American Free Trade Agreement, or for preferential customs treatment in importing countries for shipments of processed/manufactured goods from less developed countries to developed ones (often referred to as the green CO form "A", or GSP (Generalized System of Preferences) Form A CO).

http://www.saarc-sec.org/uploads/document/cert-origin_20100413011717.pdf

ALSO NOTED THAT:

Under the GSP (Generalised System of Preferences) program or the preferential tariff treatment, a free or reduced duty is granted by developed countries to certain manufactured goods from the least developed countries, in order to bolster their exports and economic growth.

Most imports eligible under the GSP program are free of duty. There are over 20 industrialized countries---donor countries (country of destination)---which maintain GSP programs and over 100 least developed countries---beneficiary countries (country of origin)---which are eligible under the GSP program.

Form A, which is often called the GSP Form A, is a certificate of origin. It is used under the GSP program for exportations to the donor countries from the beneficiary countries. Please see the sample Form A below.

Some of the donor countries which accept Form A for the purposes of the GSP include:

Australia
Austria
Belgium
Bulgaria
Canada
Denmark
Finland
France
Germany
Greece
Hungary
Ireland Italy
Japan
Luxembourg
Netherlands
New Zealand
Norway
Poland
Sweden
Switzerland
United Kingdom
U.S.A.

General Conditions to Qualify for Preferences

In order to meet the general conditions to qualify for preference, products must:

* fall within a description of products eligible for preference in the country of destination. The description entered on the form must be sufficiently detailed to enable the products to be identified by the customs officer examining them;

* comply with the rules of origin of the country of destination. Each article in a consignment must qualify separately in its own right; and,

* comply with the consignment conditions specified by the country of destination. In general, products must be consigned direct from the country of exportation to the country of destination but most preference-giving countries accept passage through intermediate countries subject to certain conditions. (For Australia, direct consignment is not necessary.)

Availability of the Form A

The beneficiary countries are responsible for supplying the Form A. It is normally available at the government foreign trade office or the Chamber of Commerce of the beneficiary country.

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