Every entrepreneur dreams of entering the international market and supplying their goods to the most diverse corners of our planet. According to the report of the World Trade Organization, the total exports of goods worldwide for 2022 amounted to 31 trillion dollars. Countries such as the United States, China, Germany, and Japan sell the most goods abroad.
Food, appliances, textiles, cars and more are all in excellent demand. However, businessmen often refuse to enter the international market because they don't understand what documents and certificates will be required. In this article, we want to look at one of the required documents for international trade. Read on to find out what a Certificate of Origin is, what it looks like and why it is needed.
Certificate of Origin – what is it?
We suggest to start with understanding and defining the term Certificate of Origin or shortly COO. This is an official document which is a proof of the fact that the goods were produced/processed in a specific country. In this way, customs authorities can verify that the goods were produced in the country that was previously specified.
This prevents the use of various frauds and makes control over import procedures much easier. The document is issued by authorized bodies such as chambers of commerce and industry. It is important to clarify that a COO can be part of a general system of international standards or serve only as a local document for customs operations. For example, under free trade agreements, such certificates are integrated into international databases, allowing Customs authorities to verify their authenticity online.
When may the Certificate of Origin be needed?
Imagine you are an electric car manufacturer and your company is based in China. One such company is Zhejiang Geely Holding Group, which owns Volvo, Zeekr and many other car brands. If you don't want to limit yourself to the Chinese market, you can supply your cars to other countries, including Europe. Obviously, to realize this goal, you will need to obtain a number of documents and one of them is a Certificate of Origin (COO).
For example, when exporting cars from China to the EU, you may also face the requirements of obtaining China Compulsory Certification (CCC). This is a mandatory certification system that regulates whether products, including cars, meet international and Chinese quality and safety standards. The CCC certificate is required for export and sales authorizations.
In our article about the WVTA certificate, we detailed the tax rates for exporting Chinese cars to the EU and other specifics. A certificate of origin may be needed not only when importing or exporting goods. When trading within the framework of free trade agreements (for example, between EAEU or EU countries), the availability of such a certificate allows you to reduce duties or avoid them completely. Another reason why a Certificate of Origin is required is to monitor compliance with sanctions.
What does a Certificate of Origin for importing goods look like?
We want to point out right away that there is not one single sample certificate of origin for everyone. Why is this so? Each country may have its own peculiarities and such certificates may differ depending on the type of transaction and the states that are involved in this process. Now we suggest that you consider the option of a certificate of origin.
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Even for China, there can be a whole list of Certificate of Origin forms. However, they are all required to contain the following information:
Exporter.
Recipient of goods.
Type of transportation and route.
Country/region of destination.
Labeling and bar codes.
Number and type of packages.
Description of goods.
HS code.
Quantity and weight of goods.
Number and date of invoices.
Surely, the Сertificate of Щrigin must have the signatures and seals of representatives of the chamber of commerce of the country where the goods were produced. In addition, the exporter may also need a CCC (China Compulsory Certificate mark) to confirm compliance with Chinese standards. This certificate is a guarantee that the goods meet safety and quality requirements.
Difference between a Сertificate of Origin and a Certificate of Conformity
If you plan to enter the international market, you will need to draw up a whole list of documents for the transportation of goods. Because of this, entrepreneurs often confuse the concepts of Certificate of Origin and Certificate of Conformity.
Characteristic | Certificate of Origin | Certificate of Conformity |
|---|
Purpose | Confirmation of the country of production | Confirmation of quality and safety |
Issued by | Chambers of Commerce | Accredited certification bodies |
When required | For customs, trade benefits | For import or sale within the country |
As you may have already understood, a certificate of origin (CoO) and a certificate of conformity (CoC) are very close concepts to each other. Why is that? These two documents are often required when importing goods, namely when checking at customs. For example, if you want to import cars from China for their subsequent sale in the EU, you need to obtain both a certificate of origin and a certificate of conformity. This allows the relevant authorities to ensure that the goods being imported comply with the requirements and regulations.
Many goods imported into the EU must also have the CE marking. This means that the product complies with the directives of the EU countries. In order to affix the CE marking to their product, the manufacturer must carry out tests to ensure that the product complies with the essential health and safety requirements set out in the relevant regulation.
The process of obtaining a Certificate of Origin
As we mentioned above, the Certificate of Origin is issued by chambers of commerce and industry. Each country has its own chamber of commerce and industry and therefore the requirements and process may differ slightly. However, the essence will still remain the same.
You need to find the address of the chamber of commerce and industry in your country or visit the website if there is one. Now you just need to collect the necessary documents and submit your application. In some countries, you can even obtain this certificate without visiting the chamber of commerce in person. Instead, you just need to apply online.
We know that applying for a certificate of origin can seem like quite a daunting task for many entrepreneurs. That is why you can always turn to aksis agents. We will gladly assist you in quickly obtaining a Сertificate of Origin for international trade.
