Certificate of Origin (COO) – what’s that?
A Certificate of Origin (COO) is an official document issued by customs authorities or chambers of commerce that confirms the country of origin of goods. It is essential in international trade to enable companies to benefit from preferential customs tariffs, comply with import regulations and avoid sanctions and embargoes. This document is of key importance in the context of Free Trade Agreements (FTAs), as goods that meet certain criteria may be exempt from duties or benefit from reduced tariffs.
Frequently Asked Questions (FAQ)
1. What information does the Certificate of Origin contain?
The Certificate of Origin contains basic information regarding the commercial transaction. It contains the details of the exporter and importer, including the company name, addresses and identification numbers. It specifies the country of origin of the goods in accordance with the applicable customs regulations. The document also contains a detailed description of the goods, including their name, quantity, weight, value and HS (Harmonized System Code), which classifies products in the tariff system. The authenticity of the document is confirmed by the signature and stamp of the issuing institution.
2. What are the types of certificates of origin?
There are two main types of certificates of origin. A preferential certificate of origin is used under free trade agreements and allows for the use of customs concessions. Examples are the EUR.1 document in the European Union or Form A under the GSP system. A non-preferential certificate of origin only confirms the country of production of the goods, but does not give the right to reduced customs duties. In some cases, companies can self-declare the origin of goods under a self-certification system, e.g. the REX system in the EU.
3. When is a certificate of origin required?
This document is necessary for the import of goods covered by free trade agreements, where it enables customs duty reductions. It is also required in countries with restrictive import regulations, e.g. in the case of sanctions or tariff quotas. A certificate of origin may also be necessary for the trade of strategic goods whose origin is subject to international control. In addition, banks may require this document for payments made under a Letter of Credit to confirm that the goods comply with the terms of the contract.
4. What are the benefits of having a COO?
The certificate of origin allows for the reduction or abolition of customs duties, so that goods with a preferential certificate can be exempted from customs duties. It also facilitates the customs clearance process, speeding up import and export procedures. In addition, this document increases trade security by enabling compliance with regulations and avoiding legal problems related to the origin of goods.
5. What are the risks of misusing a COO?
Misusing a certificate of origin can have serious consequences. Errors in the declaration of origin can result in financial penalties and delays in customs clearance. Falsifying certificates of origin is a serious violation of the law and can lead to trade sanctions and loss of access to key markets. In addition, changes in trade regulations can affect origin requirements, so companies must constantly monitor current customs regulations and international agreements.
6. Which countries and organizations require a COO?
The certificate of origin is used worldwide, but specific requirements are set by certain countries and organizations. The European Union uses the EUR.1 and REX system to facilitate trade with partner countries. In the United States, this document is required under agreements such as USMCA (formerly NAFTA). China, India and Russia also require certificates of origin depending on national regulations and signed trade agreements. The World Trade Organization (WTO) defines general rules for determining the origin of goods.
The Certificate of Origin (COO) is a key document in international trade, which confirms the country of origin of goods, enables the use of customs concessions and compliance with regulatory requirements. Having it not only facilitates commercial transactions, but also increases transparency and security in international trade.
