Certificate of origin: An essential customs document explained

A Certificate of Origin (CO) is a document that provides information about the country of manufacture for a product involved in international trade. This document certifies the non-preferential origin of goods, confirming where a product or its raw materials come from.

A CO is required when the importing country’s regulations need to be met or if it’s necessary to disclose the product’s country of origin for economic, environmental, or political reasons.

Given the changes in trade deals and regulations with the EU and other countries, Certificates of Origin are essential in the UK post-Brexit. Below, we’ll cover everything you need to know about the Certificate of Origin in the context of international shipping.

What is a Certificate of Origin?

A Certificate of Origin is an official customs document that verifies the country in which the goods were produced. It confirms the non-preferential origin of the product, meaning the goods don’t qualify for any special treatment under specific trade agreements.

In most countries, Chambers of Commerce are responsible for issuing this document. In the UK, Certificates of Origin are typically issued by the British Chambers of Commerce. Applicants usually need to have a business or residential address within the chamber’s jurisdiction. The decision whether or not a CO is required depends on the regulations of the destination country.

Important note: Be sure to clarify with your business partner if you’re both referring to the same type of “Certificate of Origin.” There is a difference between a preferential Certificate of Origin (which provides benefits under trade agreements) and a non-preferential Certificate of Origin.

Certificate of Origin vs. other key shipping documents

When navigating international shipping, it’s crucial to understand how different documents serve distinct purposes. Here’s a comparison between the Certificate of Origin and other key shipping documents:

• Commercial Invoice: The commercial invoice is a detailed bill provided by the seller to the buyer, outlining the products sold, their quantities, prices, and total amount due. It serves as a primary document for customs clearance, showing the value of the goods and the terms of the sale. Unlike the Certificate of Origin, which verifies the origin of the goods, the commercial invoice focuses on the financial transaction and product details.
• Packing list: A packing list provides a comprehensive inventory of the items included in a shipment, detailing quantities, descriptions, and packaging specifics. It assists in verifying the contents of a shipment against the purchase order or commercial invoice. While the Certificate of Origin certifies where the goods were produced, the packing list ensures that the correct items are being shipped and received.
• Bill of Lading: The bill of lading is a crucial transport document that serves as a contract between the shipper and the carrier, acknowledging receipt of the goods for shipment. It functions as a title of ownership and can be used to transfer ownership of the goods during transit. Unlike the Certificate of Origin, which confirms the product’s origin, the bill of lading details the transportation terms and conditions.
• CN22/CN23: The CN22 and CN23 forms are used for customs declarations when sending items internationally. The CN22 is typically used for packages with a value below a certain threshold, while the CN23 is used for higher-value shipments. These forms provide detailed information about the contents of the package, including descriptions, quantities, and values, to ensure proper customs processing. Unlike the Certificate of Origin, which verifies the origin of the goods, CN22 and CN23 forms are focused on facilitating the customs clearance process by providing detailed descriptions and values of the items being shipped.

Why is a Certificate of Origin needed?

A Certificate of Origin is essential for ensuring goods are correctly cleared through customs in the destination country. It helps meet government requirements by providing:

• Control over product movements: Complete transparency of all goods entering or leaving the country.
• Prevention of dumping practices: Anti-dumping measures ensure that goods sold internationally aren’t priced lower than in the domestic market, which could harm local industries.
• Import restrictions or quotas: These regulations protect domestic markets or improve trade balances.

In addition, COs may also be required for:

• Claiming tariff reductions: Some countries offer tariff suspensions or quotas for a specified amount of imported goods.
• Proof of origin for export credit insurance: For example, certain guarantees protect exports to higher-risk countries.
• Price and quality checks during customs clearance.
• Requests from customers who need proof of origin for their own compliance.

When do I need to fill out a CO?

You may need a Certificate of Origin due to the importing country’s regulations or customer requests. Some countries require COs for certain product categories, while others demand it universally. It’s important to ensure the CO is issued promptly, especially when goods are ready for shipping.

For which countries do I need a Certificate of Origin?

To find out if a Certificate of Origin is necessary for a specific country, you can use resources like Access2Markets or the UK Government’s Trade Tariff tool. By entering the origin and destination country along with the HS Code (customs tariff number), you’ll get relevant information regarding required export documents. For the most accurate information, it’s advisable to use a combination of tools and resources provided by the UK government.

It’s always a good idea to coordinate with your customer to confirm the needed documentation.

Non-preferential vs. Preferential Certificate of Origin

Customs regulations distinguish between non-preferential and preferential origin.

• Non-preferential origin means that goods are not eligible for special treatment in the country from which they originate. It refers to the commercial origin of the goods. Proof of non-preferential origin is provided by the certificate of origin.
• Preferential origin: Goods are part of a bilateral or multilateral trade agreement, usually leading to tariff reductions or exemptions. Proof of preferential origin is given via a different document, such as the EUR.1 Movement Certificate. This is determined by rules of origin, which establish the criteria a product must meet to qualify for preferential treatment.

Each country may have different requirements for proof of origin, including:

• EUR.1 or EUR-MED: For shipments from the EU to countries with an EU trade agreement.
• NAFTA Certificate of Origin: For shipments between Canada, the United States, and Mexico.
• CAFTA-DR Certificate of Origin: For shipments between the US, Central America, and the Dominican Republic.
• CO: For shipments between countries in the Middle East, Africa, and parts of Asia like China, India, Malaysia, and Singapore.

How and where can I apply for a Certificate of Origin?

Applications for Certificates of Origin are typically submitted to the local Chamber of Commerce, and in some countries, they can also be submitted online. In the UK, applications may also be submitted online via platforms like the British Chamber of Commerce or third-party providers that facilitate electronic certificates of origin.

The application consists of a set of documents, including the original CO, a request form, and copies. You’ll need to provide details such as the company name, recipient, country of origin, and product descriptions.

Costs and fees for obtaining a Certificate of Origin

Obtaining a Certificate of Origin involves various costs, which can vary by country and issuing authority. Here’s a brief overview:

1. Issuing fees: Chambers of Commerce often charge a fee for issuing the certificate, which can vary based on the country and the complexity of the request.
2. Application processing fees: Additional fees may apply for processing, especially for expedited requests.
3. Certification fees: Extra costs may be incurred for certification or verification by consulates or trade organisations.
4. Document preparation fees: Service providers or freight forwarders may charge for document preparation and submission.
5. Additional costs for international trade: There may be extra fees for legalising or authenticating the certificate for international shipments.

The cost of obtaining a Certificate of Origin varies depending on your specific circumstances and requirements. In the UK, costs typically range from £30 to £90, but it really depends on who you’re getting it from and how fast you need it. For specific and up-to-date pricing, it’s best to check directly with the relevant Chamber of Commerce in your region.

Final thoughts on Certificates of Origin

Certificates of Origin play a vital role in customs procedures, helping to ensure compliance with import regulations and supporting international trade. While not all countries require this document, it’s essential for certain regions, especially in the Middle East and Eastern Europe. After Brexit, Certificates of Origin have become more important for UK businesses trading with the EU and other international partners due to new agreements and trade rules.

Ready to take your international shipping to the next level? Check out our blog on smooth customs clearing for more insights. Or learn more about how Sendcloud can help you optimise your international shipping process!