Certificate of Origin (CO)

Certificate of Origin (CO)

Subject – Economy

Context – Centre allows exporters time till January 31 on origin e-certificate

Concept –

• A Certificate of Origin (CO) is an important international trade document that certifies that goods in a particular export shipment are wholly obtained, produced, manufactured or processed in a particular country.
• They declare the ‘nationality’ of the product and also serve as a declaration by the exporter to satisfy customs or trade requirements.
• COs are requested by customs, banks, private stakeholders and importers for several purposes.
• Almost every country in the world requires CO for customs clearance procedures: when determining the duty that will be assessed on the goods or, in some cases, whether the goods may be legally imported at all.
• There are two types of COs that chambers can issue:
  • Non-Preferential COs which certify that the goods are subject to no preferential treatment. These are the main type of COs that chambers can issue and are also known as “Normal COs”.
  • Preferential COs, which certify that goods are subject to reduced tariffs or exemptions when they are exported to countries extending these privileges. These COs tend to be closely associated with Regional Trade Agreements.
• Ministry of Commerce & Industry launched a common digital platform for the issuance of electronic Certificates of Origin(CoO).
  • The platform has been designed and developed by the Director-General of Foreign Trade (DGFT) and Regional & Multilateral Trade Relations (RMTR) Division, Department of Commerce, Ministry of Commerce and Industry.
  • This platform will act as a single access point for all exporters, all Free Trade Agreements (FTAs)/Preferential Trade Agreements (PTAs), and all concerned agencies.
  • The platform also provides administrative access to the Department of Commerce for reporting and monitoring purposes.