/ By tjchinafreight ivy / International

Certificate of Origin

What is a Certificate of Origin (CO)?

A Certificate of Origin (CO) is a document that indicates the country in which the item or goods were manufactured. A certificate of origin contains information about the product, destination and exporting country. For example, an item might be labeled "Made in the USA" or "Made in China."

CO is an important form, required by many cross-border trade treaty agreements, because it can help determine whether certain goods are eligible for import, or whether goods are subject to customs duties.

Why do I need a Certificate of Origin?

If you are shipping internationally, you may need to obtain a Certificate of Origin (COO) for your shipment.
The COO is often required when there is a need to know the country of origin for economic, political or environmental reasons, such as whether there are import quotas, boycotts or anti-dumping measures.
If you ship between countries that share a trade agreement, the COO certifies to customs authorities that the goods are eligible for reduced import duties or taxes.
Some plant and animal products subject to the CITES agreement also require a certificate of origin.

Two types of CO

There is no standardized Certificate of Origin (CO) form for global trade, but the CO, usually prepared by the exporter of goods, contains at least basic details about the product being shipped, the tariff code, the exporter and importer, and the country of origin. After the exporter understands the specific requirements of the border control in the importing country, he will record these details, obtain a CO notarized by the Chamber of Commerce, and submit the form with the shipment. The detailed requirements depend on the type of goods exported and the export destination.

The two types of CO are non-concessional and preferential. Non-preferential COs, also known as "ordinary COs," refer to goods that do not qualify for tariff reduction and exemption treatment under inter-country trade arrangements, while preferential COs state that they are eligible. In the United States, the Generalized System of Preferences (GSP), enacted by Congress in 1974 to promote economic development in poor countries, eliminated tariffs on thousands of products imported from more than a hundred countries with preferential status. Countries such as Bolivia, Cambodia, Haiti, Namibia and Pakistan are currently on the list, as are many other third world or developing countries. The EU and countries around the world have their own versions of the GSP, which mainly promote economic growth through trade with friendly countries.

How to get a certificate of origin?

You can apply for one at your local chamber of commerce - keep in mind that you will need one for each shipment.

In some countries, you can apply for a COO directly online. In other countries, you fill out the standard Certificate of Origin form and submit it to your local Chamber of Commerce for stamping and approval.
Since applying for a Certificate of Origin can be complicated, to save time, you can have an agent (such as a freight forwarder) do it for you.
Keep in mind that some countries require the certificate to be legally approved by the Embassy or Ministry of Foreign Affairs, which may take more time.

Which countries require a certificate of origin?

Any country may require a COO for any product, so be sure to check with your local chamber of commerce if necessary.

Some of the international trade relationships that typically require a Certificate of Origin are:

  • Shipping from EU to countries with EU trade agreements - using EUR.1 file or EUR-MED file
  • For shipments between Canada, the United States and Mexico - use the NAFTA Certificate of Origin
  • For shipments between the US, Central America and the Dominican Republic - use the CAFTA-DR Certificate of Origin
  • Shipping to some countries in the Middle East and Africa - usually requires a Certificate of Origin
  • Shipping to some countries in Asia such as China, India, Malaysia or Singapore - usually requires a Certificate of Origin
/ By tjchinafreight ivy / International

GSP

What is GSP?

The GSP is a preferential tariff system that provides a formal exemption from the more general rules of the World Trade Organization (WTO). In short, this means that WTO members must treat imports from all other WTO members equally as they treat imports from their "best" trading partners.

  • The Generalized System of Preferences (GSP) is an umbrella that covers most of the preferential schemes that industrialized countries give to developing countries.
  • It involves reducing most-favored-nation (MFN) tariffs or enabling tax-free entry of eligible products exported from beneficiary countries to donor markets.

Developing countries automatically receive the GSP if:

  • Classified by the World Bank as an income level below "upper middle income"
  • Do not benefit from other arrangements (such as free trade agreements) that give them preferential access to the EU market
  • In addition, if GSP+ is granted, the beneficiary must ratify 27 international conventions (see GSP+ above) and work with the Commission to monitor the implementation of these conventions.

LDCs automatically get the benefits of the "everything but arms" arrangement, even if they have another arrangement.

GSP benefits

  • Promote economic growth and development in developing countries by helping beneficiary countries increase and diversify trade with developed countries.
  • Jobs - The transfer of GSP imports from terminals to consumers, farmers and manufacturers has provided tens of thousands of jobs in developed countries.
  • The GSP increases the competitiveness of firms because it reduces the cost of imported inputs that firms use to manufacture goods.
  • GSP promotes global values ​​by supporting beneficiary countries in providing workers' rights to their people, enforcing intellectual property rights and supporting the rule of law.

There are several ways that GSP regulations can ensure that the interests of European industry are safeguarded:

  • GSP beneficiaries who are “high-middle-income” countries will be removed from the GSP.
  • GSP beneficiaries may lose preferences for specific product categories deemed sufficiently competitive: Suspension of tariff preferences 2017-2019External link.
  • EU industries can request safeguards based on evidence that imports from GSP beneficiary countries have caused serious economic hardship to the industry: safeguards for Cambodian and Myanmar rice.