A certificate of origin (often abbreviated to C/O, COO or CoO) is a document used

in international trade. In a printed form or as an electronic document, it is completed by

theexporter and certified by an recognized issuing body, attesting that the goods in a particular
export shipment have been produced, manufactured or processed in a particular country.

Historical background[edit]

Certificate of Origin: This coal was recovered from the wreck of R.M.S. Titanic during the 1994 Titanic
Research and Recovery Expedition

The first certificate of origin was issued by the Marseille Province Chamber of Commerce at the
end of the 19th century[citation needed]. The formalization in the role of chambers of commerce as
issuing agencies for certificates of origin (CO) can be traced back to the 1923 Geneva
Convention relating to the Simplification of Customs Formalities (Article 11) and has been
reinforced with the updated Kyoto Convention.[1]

Under these Conventions, signatory governments were able to allow organizations which
possess the necessary authority and offer the necessary guarantees to the State to issue
certificates of origin. Thus due to the widespread network of the chamber of commerce
community, in most countries, chambers of commerce were seen as these organizations allowed
to issue certificates of origin. As such, seen as competent authorities, chambers began to more
widely issue non-preferential certificates of origin.

In 1968, at the Uruguay Round, an agreement was reached on Rules of Origin which led to more
transparent regulations and practices regarding rules of origin (RoO).

Later on, in 1999, the Revised Kyoto Convention added an Annex on the Simplification and
Harmonization of Customs Procedures to further facilitate the transfer of legal documents in
international trade.

By 2008, 350 Free Trade Agreements had been reached with provisions on preferential
treatment; 400 Free Trade Agreements are expected by 2012, seeing an expansion on the
issuance of preferential certificates of origin[citation needed].
Country of origin[edit]
The origin of the product does not refer to the country where the goods were shipped from but to
the country where they were made. In the event the products were manufactured in two or more
countries, origin is obtained in the country where the last substantial economically justified
working or processing is carried out. An often used practice is that if more than 50% of the cost of
producing the goods originates from one country, the "national content" is more than 50%, then,
that country is acceptable as the country of origin.[2]

In the case of trading blocs, certificates of origin may be allowed[3] to state the trading bloc (for
example, the European Union as origin) rather than a specific country. Determining the origin of a
product is important because origin is a key information for applying tariffs, embargo and other
trade policies.[1] However, not all exporters need a certificate of origin, this will depend on the
destination of the goods, their nature, and it can also depend on the financial institution involved
in the export operation.

Issuance[edit]
In order to be valid, the certificate of origin must be signed by the exporter, and countersigned by
the local chamber of commerce.[4] For certain (but few) other destination countries, the document
has also to be countersigned by a consulate.

The issuance of certificates of origin is not harmonized between the different chambers of
commerce. The ICC World Chambers Federation is an international organism trying to establish
international certificate of origin guidelines, and to standardize procedures around the world.

Types of certificates of origin[edit]

Non-preferential and preferential[edit]
Non-preferential certificates of origin[1] are the most common type of certificate. These certificates
of origin see that goods do not benefit from any preferential treatment and do not emanate from a
particular bilateral or multilateral free trade agreement. Chambers that are authorized to issue
certificates of origin are most frequently authorized to issue non-preferential certificates of origin.

A preferential certificate of origin is a document attesting that goods in a particular shipment are
of a certain origin under the definitions of a particular bilateral or multilateral free trade
agreement (FTA).[5] This certificate is required by a country's customs authority in deciding
whether the imports should benefit from preferential treatment in accordance with special trading
areas or customs unions such as the European Union, ASEAN or the North American Free Trade
Agreement (NAFTA) or before anti-dumping taxes are enforced.

The definition of "country of origin" and "preferential origin" are different. The European Union for
example generally determines the (non-preferential) origin country by the location of which the
last major manufacturing stage took place in the products production (in legal terms: "last
substantial transformation"). Whether a product has preferential origin depends on the rules of
any particular FTA being applied, these rules can be value based or tariff shift based.

The FTA rules are commonly called "origin protocols". The origin protocols of any given FTA will
determine a rule for each manufactured product, based on its nomenclature code (Harmonized
Tariff Schedule for example, or HTS). Each and every rule will provide several options to
calculate whether the product has preferential origin or not.

A typical value based rule might read: raw materials, imported from countries that are not
members of this FTA, used in production do not make up for more than 25% of the Ex-Works
value of the finished product. A typical tariff shift rule might read: none of the raw materials,
imported from countries that are not members of this FTA, used in production may have the same
HTS code as the finished product.

In several countries, customs authorities are delegating the right to issue preferential certificates
of origin on their behalf to chambers of commerce. These countries include New Zealand,
Australia, Sweden and the United Kingdom.

Regional declinations[edit]
With the multiplication of trading bloc and free trade agreements (FTAs), a multitude of different
forms have emerged and are used as certificates of origin in today's international trade.

A European Union certificate of origin, for a cargo loaded in Finland

For example, the European Union accepts the EUR.1 movement certificate as a valid certificate
of origin. It is indispensable to fall within the General Scheme of Preferences (GSP) system.[6]

Depending on the exporting and importing countries, as well as the applicable trade regulations,
other standard forms such as the Form A,[7] Form B (applicable for the Asia-Pacific Trade
Agreement), Form E (for the ASEAN-China Free Trade Area), Form F (for the China-Chile Free
 Trade Agreement), Form N (for the China-New Zealand Free Trade Agreement), Form X (for the
China-Singapore Free Trade Agreement), EUR-MED (for the Pan Euro Med Free Trade
Area), ATR.1 (for the trade between the EU and Turkey), US certificate of origin[8] and
the NAFTA certificate of origin[9] are also in use.

However, virtually all certificate of origin form use the same template, with fields for the country of
origin, the shippers, consignees, transport details, product and quantity, and the issuing body
(stamp and signature).

Electronic certificates of origin[edit]

Chambers of commerce issue millions of certificates of origin every year. To keep pace with the
shift to e-business and improve their efficiency, so-called "eCO" are being implemented[citation needed].

Increasing concerns about fraud and the need to improve the supply chain security, eCOs are
seen as a means not only to facilitate and provide a secure trading environment but also save
time, costs and increase transparency[citation needed]. Several eCO platforms have been developed by
national and regional chambers of commerce.[10][11][12][13]
A Certificate of Origin (CO) is an important international trade document attesting that
goods in a particular export shipment are wholly obtained, produced, manufactured or
processed in a particular country.

COs also constitue a declaration by the exporter. Virtually every country in the world considers the origin of
imported goods when determining what duty will be assessed on the goods or, in some cases, whether the
goods may be legally imported at all.

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What is a Certificate of Origin?

A Certificate of Origin (CO) is an important international trade document attesting that
goods in a particular export shipment are wholly obtained, produced, manufactured or
processed in a particular country.
COs also constitue a declaration by the exporter. Virtually every country in the world considers the origin of
imported goods when determining what duty will be assessed on the goods or, in some cases, whether the
goods may be legally imported at all.
Introduction to Certificates of Origin activities
Two major types of COs

The main type issued by chambers are "Non-Preferential COs", i.e. ordinary COs which certify that the
country of origin of a particular product does not qualify for any preferential treatment.
"Preferential COs" refer to COs which enable products to enjoy tariff reduction or exemption when they are
exported to countries extending these privileges: e.g. GSP, Commonwealth Preference Certificate.
Certificates of Origin may be needed to comply with Letters of Credit, foreign Customs requirements or a
buyers request.
In most countries, chambers of commerce are the key agent in the delivery of certificates of origin.
However, in some countries, this privilege may also be extended to other bodies such as ministries or
customs authorities.
Chambers Authority

The role of chambers of commerce delivering certificates of origin can be traced back to the 1923 Geneva
Convention relating to the Simplification of Customs Formalities, Article 11 (eventually updated by the Kyoto
Convention).
Under the Convention, its signatory governments were obliged to make the process and procedures as
simple as possible for companies requiring certificates of origin. In addition, it was specified that the State
may allow these certificates to be issued by other organizations, "which possess the necessary authority
and offer the necessary guarantees" to the State.
Thus, due to the widespread network of the chamber of commerce community, chambers of commerce are
authorized to issue certificates of origin today.
Companies may consult the WCN Chamber of Commerce Directory (www.worldchambers.com) to find their
nearest chamber who may offer this service.