Certificate of Origin (COO): Your goods' ID
The Certificate of Origin (COO) is a crucial document in international trade that certifies the country where goods have been produced, manufactured, or processed. It functions as your cargo's "ID card" and is fundamental for customs clearance.
What is the Certificate of Origin for?
The main function of the COO is to determine the origin of the goods, which has two direct consequences:
Application of preferential tariffs
If the country of origin of the goods has a trade agreement or free trade agreement with the country of destination (such as an agreement between the European Union and the USA), the Certificate of Origin allows the importer to benefit from the reduction or elimination of customs duties. Without this certificate, the goods might be subject to higher tariffs.
Compliance with regulations
The COO allows customs authorities to apply other specific regulations, such as trade restrictions, import quotas, or anti-dumping measures that may exist for products from certain countries.
Types of Certificates of Origin
There are two main types of COO, each with a distinct purpose:
Non-preferential (or common) Certificate of Origin:
Purpose:
Simply certifies the origin of the goods without implying tariff benefits.
Issuance:
It is issued by a Chamber of Commerce in the exporting country. It serves to comply with import regulations and for trade statistics.
Example:
A certificate issued by the Chamber of Commerce of Barcelona for a shipment of machinery to a country with which there is no specific trade agreement.
Preferential Certificate of Origin:
Purpose:
Certifies that the goods comply with the rules of origin of a trade agreement, thus allowing the application of reduced or zero tariffs.
Issuance:
It can be a specific document like the EUR.1 (for EU agreements with other countries) or a declaration on the invoice itself (invoice declaration), depending on the value of the shipment and the trade agreement.
Example:
To export a product from the EU to South Korea, an EUR.1 certificate is used so that the Korean importer does not pay tariffs, thanks to the free trade agreement between both.
What information does a Certificate of Origin contain?
A COO must include detailed information on:
Exporter and Importer Data: Name, address, and country.
Means of Transport: Details about the shipment (vessel, flight, etc.).
Description of Goods: Type of product, quantity, weight, and value.
Place of Origin: The country where the goods were produced.
Exporter's Declaration: A sworn statement that the information is true.
Seal of the Issuing Authority: The seal and signature of the Chamber of Commerce or the authorized entity.
An important point to bear in mind:
The country of origin is not always the country from which the goods are exported. For example, a Spanish company may export a product manufactured in China. In this case, the origin of the product remains China, and this will be reflected in the certificate of origin, and this point is very important because, depending, as we said, on the country of destination, it may have some type of extraordinary tariff or restrictions.
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Cargo Manifest
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Charter Party
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