Updated on September 05, 2023 01:06:52 PM
A certificate of origin is an essential legal document provided to exporter of manufactured goods to authenticate the origin of the product. This document includes crucial information such as the original manufacturer's details, the location where the goods were produced, and the intended destination of the commodities. The certificate serves as proof to customs authorities and trade partners, ensuring compliance with trade agreements, import regulations, and tariff policies. It plays a vital role in verifying the authenticity and traceability of goods, promoting fair trade practices, and facilitating international trade transactions with transparency and credibility.
Certificate Of Origin [Sample]
The forms for certificates of origin (COOs) used in global trade are not standardized. However, it typically includes essential information about the shipped product, such as a tariff code, details of the exporter and importer, and the country of origin.
Non-preferential certificate of origin indicates that the goods being exported do not qualify for reduced tariffs or tariff-free treatment under any trade agreements between countries.If an exporting country does not have a treaty or trade agreement in place with the importing country, an ordinary COO is required. Additionally, if a specific product being shipped has been excluded from tariff relief, it must be declared using an ordinary COO.
These are the list of documents required to procure certificates of origin for respective free trade agreements.
The fee required for the COO registration is 3,236 rupees, including our professional fees. The registration will be valid for up to 12 months from the date of issuance.
Exporters can apply for re-issuance of the certificate of origin once the validity period has expired.
|One-time registration fee||₹500|
|Validity of COO||12 months from the date of issuance|
1 - Account ID creation:- An account will be created on the DGFT portal with DSC or any other authorized government portal to apply for certification.
2 - Documentation:- An applicant must provide valid information and required documents with the application to prove the origin of their products.
3 - Verification & authorization:- The issuing authority will assess and conduct a full inspection through a risk management system to verify & authenticate the origin of the Product.
4 - Certification:- Once the approval is granted after the verification & inspection. Authorities will issue the certificate of origin to the respective applicants. As per agreed rules under the cepa agreement. The certificate of origin registration must be in English language only. The issued certificate must have all the required details about the Product and the exporting entity.
If the Product meets the following criteria, it will be considered to have come from a contracting nation and be eligible for preferential treatment.
Wholly Obtained Or Produced Products such as
Note:- Exporters are required to furnish a certificate of origin for their products in order to verify their authenticity in accordance with the agreed trade agreement among the involved parties.
India has enhanced its market access commitments for neighbouring service providers. These commitments provide companies with an opportunity to build market expertise and grow by international expansion. Under Free or Preferential Trade Agreement there are multiple options where certificate of origin can be generated from India for import benefits to importing companies:-
ICPTA - India Chile Preferential Trade Agreement
SAFTA - South Asia Free Trade Agreement
SAPTA - SAARC Preferential Trade Agreement
IKCEPA - India Korea Comprehensive Economic Partnership Agreement
IJCEPA - India Japan Comprehensive Economic Partnership Agreements
AIFTA - ASEAN India Free Trade Agreement
ISFTA - India Sri Lanka Free Trade Agreement
APTA - Asia Pacific Trade Agreement
GSP - Generalized System of Preferences
GSTP - Global System of Trade Preferences
IMCECA - India Malaysia Comprehensive Economic Cooperation Agreement
ISCECA - India Singapore Comprehensive Economic Cooperation Agreement
A Comprehensive Economic Partnership Agreement (CEPA) or Comprehensive Economic Cooperation Agreement (CECA) is different from a traditional (FTA) Free Trade Agreement in two ways.
Firstly, Certficate Of Origin or CECA are more comprehensive and ambitious than an FTA in terms of coverage of areas and the type of commitments. While a traditional Free Trade Agreement focuses mainly on goods; a CECA/Certficate Of Origin is more ambitious in terms of a holistic coverage of many areas like services, investment, competition, government procurement, disputes etc.
Secondly, Certficate Of Origin/CECA looks deeper at the regulatory aspects of trade than a Free Trade Agreement. It is on account of this that it encompasses mutual recognition agreements that cover the regulatory regimes of the partners. An MRA recognises different regulatory regimes of partners on the presumption that they achieve the same objectives.
Countries negotiate Free trade Agreements for a number of reasons:
India has preferential access, economic cooperation and Free Trade Agreements (FTA) with about 54 individual countries. India has signed bilateral trade deals in the form of Comprehensive Economic Cooperation Agreement (CECA) / Comprehensive Economic Partnership Agreement (Certficate Of Origin) / Free Trade Agreement / Preferential Trade Agreements (PTAs) with some 18 countries. India is a late & cautious, starter in concluding comprehensive PTA covering substantially all trade with some of its trading partners.
Country of origin / Rules of origin (ROO) are the criteria needed to determine a product for purposes of international trade. Their significance is derived from the fact that duties & restrictions in several cases depend upon the source of imports.
Rules of origin are used:
The criteria in the (RoO) rules of origin sets out specific & detailed conditions on the level of processing that an imported item from a non Free Trade Agreement partner country must undergo in the Free Trade Agreement partner country (or other eligible countries in the region) before being eligible to be called an originating product of a Free Trade Agreement partner country. Some of the common standards used are :-
The authorized agencies in India for issuing the certificate of origin are listed in Appendix 35 of the Handbook of Procedures Vol-1 under the Foreign Trade Policy.
|Agreement||Agencies authorized to issue Certificate of Origin|
|Asia Pacific Trade Agreement (APTA)||Export Inspection Council (EIC); Export Development Authorities; Development Commissioners of EPZs and SEZs; FIEO|
|Global System of Trade Preferences (GSTP)||EIC for all products; Tobacco Board, Guntur for tobacco and tobacco products|
|India Afghanistan PTA||EIC|
|India ASEAN Trade in Goods Agreement||EIC|
|India Chile PTA||EIC|
|India JAPAN Certficate Of Origin||EIC|
|India Mercosur PTA||EIC|
|India Singapore CECA||EIC|
|India South Korea Certficate Of Origin||EIC|
|South Asian Free Trade Agreement (SAFTA)||EIC|
The four methods of supply –
Method 1: Cross border supply (supply from the territory of a Party into the territory of the other Party). For Instance an architect can send his architectural plan through electronic means; a lecturer can send teaching material to students in any other country; a doctor sitting in France can advise his patient in India through digital means. In all these cases, trade in services takes place and this is equal to cross-border movement of goods.
Method 2: Consumption abroad ( consumption in the territory of a Party by the service consumer of the other Party). For Instance a tourist using hotel or restaurant services abroad; a ship or aircraft undergoing repair or maintenance services abroad.
Method 3: Commercial presence (by a service supplier of a Party, through commercial presence in the territory of the other Party). In this case, the service supplier establishes a legal presence in the form of a representative / branch office / joint venture / subsidiary in the host country & starts supplying services. For Instance a bank opens its branch in another country.
Method 4: Presence/movement of natural persons (by a service supplier of a Party, through presence of natural persons of a Party in the territory of the other Party). For Instance Independent service suppliers (e.g. doctors, engineers, individual consultants, accountants, etc.) who provide services in another country. However, GATS covers only temporary movement & not citizenship, residence or employment on a permanent basis in the foreign country.