21/09/2021 Legal
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The certificate of origin can be a statement added to the commercial invoice supporting the listing of the country of origin by line item. Alternatively, it could be a separate letter or form incorporating a statement indicating that the country of origin is as stated on the commercial invoice, certifying that the document is true and correct, and then signing it by the employee of the exporter.
While exporting exporter needs to submit a certificate of origin at the landing port of the importing country, these documents is important to claim duty concessions under free trade agreements (FTA). This certificate is essential to prove from where goods are coming from, where the goods originated.
A Trade Agreement is a contractual arrangement between countries regarding their trading relations and the manner in which they trade with each other.
Trade contracts can be bilateral or multilateral and could take the form of
Regional Trade Agreement (RTA), a mutual trade agreement between or between two or more countries
A Preferential Trade Agreement (PTA) to offer preferential tariffs to developing-country imports
The Free Trade Agreement (FTA) is an arrangement whereby participating countries agree to eliminate trade barriers (importation quotas and tariffs) and to increase trade between goods and services.
Customs departments in the importing country may require a "proof of origin" to decide whether or not the imported cargo will be subject to trade measures such as preferential duty tariffs (for products imported from the PTA bloc), free trade agreements, banned products, etc.
Under the concept of WCO (World Customs Organization), a "proof of origin" is a document or declaration (either in paper or electronic format) which serves as prima facie proof of the origin of the products.
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