Certificate of Origin (COO)
What is a Certificate of Origin
A Certificate of Origin (COO), often abbreviated as C/O, is an official document that certifies the country in which a product was wholly obtained, produced, manufactured, or processed. This certificate is required to accompany each shipment of the product or future shipment of the same product or a different product.
In essence, it confirms the “nationality” of the goods in an export shipment.
Why is certificate of Origin important for any product?
When goods are exported from India to another country, the customs authority at the destination should know where the product has come from. This information is crucial because some countries have agreements that allow products from specific countries to be imported with lower or no import tax.
The COO provides that proof of origin, ensuring that the goods qualify for these benefits. Without the COO the product might face higher taxes or even be rejected by the customs of the importing country.
Types of Certificate of Origin
There are mainly two types of COO.
- Preferential Certificate of Origin
This certificate is used when products being exported qualify for export benefits under specific trade agreement between India and other country (importing country).
- Generalized System of Preference (GSP) – India has a Preferential GSP with, for example Japan, New Zealand etc.
- Global System of Trade Preference (GSTP) – India has GSTP agreements, for example with Indonesia, Argentina etc.
- SAARC Preferential Trading Agreement (SAPTA) – India has a SAPTA agreement with all SAARC nations, for example with Bangladesh, Maldives, Afghanistan etc.
- Bilateral Agreements – India has individual trade agreements signed up with, for example Sri Lanka, Australia, UAE, etc.
- Non Preferential Certificate of Origin
This type of COO simply certifies the certificate or origin of the
goods without offering any tariff benefits. It is still important for
customs purposes. Example of this is all countries under Most
Favoured Nations (MFN), for example Germany, Peru etc.
Where to Obtain COO from?
The CO is usually prepared and completed by the exporter or the manufacturer, but it must be certified by an authorized third party. Common issuing bodies include:
- Chambers of Commerce (most common for Non-Preferential COs).
- Government Agencies (such as Ministries of Trade or specific Export Promotion Councils).
- Customs Authorities (often for Preferential COs under specific FTAs).
- FIEO or CII or PHD Chamber of Commerce