Online Certificate of Origin for Export in India

Introduction

A Certificate of Origin is a crucial document in international trade that is used to certify the country in which the goods and commodities are produced. Chambers of commerce or customs agencies are responsible for issuing the certificate. This is a multi-purpose certificate that includes verification of origin, determining applicable tariffs, and ensuring compliance with trade agreements. Therefore, every exporter must secure this certificate for their products without any failure. With Bizfoc, learn why a Certificate of Origin is important, what is its eligibility criteria, types and processes of obtaining the certificate in detail.

What is a Certificate of Origin for Export in India?

Certificate of Origin for export is a legal document or certificate that identifies the origin country of any good or commodity provided by the Directorate General of Foreign Trade (DGFT). Apart from the basic information that is included in this certificate it also includes details like about the product, manufacturer’s address, and export countries. Exporters can determine eligibility for tariff benefits and provide proof of origin for their goods using the DGFT CoO, a vital tool in promoting cross-border trade.

Benefits of Certificate of Origin

Obtaining a Certificate of Origin for exporters offers several benefits, some of which are given as follows:

• Tariff Preferences: Securing tariff preference and lowering import duties is one of the main advantages of a Certificate of Origin for exporters. Many countries offer preferential tariffs under specific trade agreements allowing exporters to create a competitive product market by lowering costs.
• Trade Agreements: The Certificate of Origin for exporters is also important for products to qualify under various trade and free trade agreements (FTAs). These agreements enable member countries to benefit from reduced to zero tariffs, boosting the potential for the export of businesses within these regions.
• Customs Clearance: The CO makes customs clearance easier by making the product's origin visible. This expedites the procedure overall by assisting customs officials in determining who qualifies for special treatment and ensuring adherence to trade laws.
• Market Access: Access to new markets can be made easier with a Certificate of Origin for exporters. Depending upon the product's country of origin, some countries have strict import laws or restrictions. A valid CO can help in overcoming these barriers and providing access to markets that might otherwise be difficult to penetrate.
• Credibility and Trust: A Certificate of Origin serves as a foundation for the exporting company's and the product's increased credibility. Importers often prefer to work with exporters providing complete documentation, including certificates of origin, as it helps in building trust and assurance in the quality and origin of the goods.
• Export Incentives: Sometimes, governments offer export incentives or financial assistance to businesses. A valid Certificate of Origin may be required to qualify for these benefits that provide additional financial advantages.
• Compliance with Regulations: Exporters have to adhere to some rules governing international trade. The Certificate of Origin ensures that the exported goods comply with the relevant trade agreements and the particular requirements of the importing country.

Types of Certificate of Origin

There are primarily two types of Certificate of Origin such as:

• Preferential Certificate of Origin: Under this type of Certificate of Origin, goods are subjected to preferential tariff treatment in the payment of tariffs. These charges could result in a full exemption from tariffs or a reduction in the standard tariff. A situation like this occurs when two or more countries come to a trade agreement that includes exemptions for commodities sold or imported between these nations.
• Non-Preferential Certificate of Origin: Under this type of Certificate of Origin, the goods being imported or exported are not given any preferential tariff treatment and the tariffs must be applied to the goods being transported.

Necessary Documents for Certificate of Origin

In order to acquire a Certificate of Origin, a list of documents needs to be submitted on time. The checklist of required documents is given as follows:

• Shipping Bills: Including the items, their quantity, and value.
• Copy of Invoice: Listing item’s price.
• Bill of Lading/Airway Bill: A shipping business receipt that includes information on the recipient and sender of the package as well as its destination.
• Packing List: Indicating each shipment's contents, packing method, and weight.
• Manufacturer's Name and Contact Details: Including the country of origin.
• Exporting Agent's Name & Contact Information:
• Name and Contact Details of Importing Agent/Receiver:
• Digital Signature Certificate:
• Import/Export Code:

Fees Required for Certificate of Origin

The amount required for obtaining a Certificate of Origin is mentioned as follows:

Note: The certificate is required for every shipment, therefore, make it one of the important trade document.

Time Taken for Getting Certificate of Origin

The Certificate of Origin is an important document for international trade and is issued within 2-3 working days.

Registration Process for Acquiring Certificate of Origin

To obtain a Certificate of Origin, the following steps are usually involved in the registration process:

• Step 1: Creating an Account

  Make an account on the portal for applications for Certificates of Origin. Register on it with the relevant authority or organization in charge of issuance of a Certificate of Origin.

• Step 2: Submitting Documents

  To move further with your application, provide all the necessary documents and information required to facilitate the application. This includes details of exported goods, their origin, the exporter, and any applicable trade agreements.

• Step 3: Authorization and Verification

  Provide the documents for examination by the issuing authority to ensure they fulfill all requirements for the Certificate of Origin. This includes verifying the products' provenance and ensuring compliance with applicable laws and trade agreements.

• Step 4: Granting the Certificate of Origin

  After reviewing and examining the application successfully, if it meets all requirements under the Comprehensive Economic Partnership Agreement (CEPA) or other relevant trade agreements, the Certificate of Origin is granted to the applicant. Both the registration and the certificate must include all pertinent information about the goods and the exporting organization, written in English.

Eligibility Criteria of Products Falling Under Certificate of Origin

The list of products that fall under the Certificate of Origin is categorized based on certain criteria that determine their eligibility for preferential treatment originating from a contrasting country is mentioned below:

• Wholly Obtained or Produced Products: In this category, the list of items that are obtained or produced entirely within the territory of the contracting country falls. Examples include:
  • Living animals
  • Agricultural Products
  • Products made out of Animals
  • Products made out of Marine Animals
  • Products made of Natural Resources
  • Products made exclusively within the territory of the country
  • Products have undergone adequate production work in compliance with the Product Specific Rules.

Note: Exporters are required to present a Certificate of Origin for their products to ensure that their products are eligible for preferential treatment under the terms of the trade agreements between the concerned nations.

Certificate of Origin in Trade Policy

A separate tool of commercial policy, the Certificate of Origin (CoO) aims to develop and support international economic cooperation as well as reciprocal trade partnerships. It shares a close relationship with the fundamental idea of tariffs, a traditional tool in trade policy.

The COO certificate primary purpose is to verify and determine the origin of the products being traded. It provides important information about the nation in which the products were made, sourced, or produced. Determining the appropriate tariff rates or preferential treatment that may be granted under different trade agreements requires the use of this information.

Other Free Trade Agreements

Under a free or preferential trade agreement, there are several ways to get an certificate of origin for import benefits to countries that import goods:

• 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 Agreement
• ISFTA: India Sri Lanka Free Trade Agreement
• AIFTA: ASEAN India 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

DGFT Certificate of Origin

The Directorate General of Foreign Trade (DGFT) has recently introduced a new system of online portal to issue the Preferential Certificate of Origin. This single platform supports the issuance of a Certificate of origin for all free trade agreements, including Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs).

Why Choose BizFoc?

Choosing Bizfoc for your Certificate of Origin can be a wise choice, and here’s how it can help make the registration process smoother and more efficient. The reasons for choosing Bizfoc are listed below:

• Expert Guidance and Experienced Personnel
• Streamlined Process
• Personalized Service
• Accuracy and Efficiency
• Compliance Fulfillment
• Support of Experts

Conclusion

In conclusion, the Certificate of Origin is a servicing document that acts like a passport for your products or goods. With the help of this certificate, exporters can easily streamline the international trade process which can save you time and money. It certifies the manufacturer’s address, business compliance, and import regulations, preferential tariffs, and avoids unnecessary delays. For both importers and exporters, understanding the importance and complexity of the document can significantly impact the effectiveness of their operations. Last, whether you are a new trader or not, staying informed about the registration process, fees, eligibility criteria, etc. is crucial. If you are planning on acquiring such a certificate consult with professionals like Bizfoc for expert solutions and smooth procedures.

Frequently Asked Questions (FAQs)