Introduction
A certificate of origin or root, to send out or to import the products
is vital report in universal exchange which
certifies that the nation where the products or items were made.
And this certificate is issued by the assigned specialists or designated
authorities, such as chambers of commerce or
traditions organization which are customs agencies.
This certificate holds the information of the product or an item, its designation and the countries of export. And for export or cross-border trades, which are accepted upon by the trade agreements, this certificate is mandatory.
Types of Certificate of Origin
- Preferential COs: Certificate of Origin preference is granted when there is a free trade agreement or tariff reduction between exporting and importing countries. Products exported under these contracts are eligible for favourable tariff rates.
- Non – Preferential COs: Non-preferred COs, also known as “ordinary COs”, indicate that exports are not eligible for reduced tariff rates or duty-free treatment under trade agreements between country. These are needed when there is no separate trading agreement or when some profit is available from the investment.
- This certificate holds the information of the product or an item, its designation and the countries of export.
Importance of CoO
The customs authorities of importing countries require certificate of origin for the proper classification of goods and proper application of import duties or taxes. Certificate of Origin (CO) serves as the proof of the product origin and helps to ensure compliance with the trade agreements and regulations.
Benefits of Certificate of Origin
- Market Access: Having a Certificate of Origin opens up new markets for overseas buyers. Some countries have very strict laws or import restrictions on products of a certain origin. A valid Certificate of Origin products access to these markets without any barriers.
- Export Incentives: In some cases, government offers export incentives or financial assistance to consumers. A valid Certificate of Origin may be a requirement for these incentives and benefits.
- Customs Clearance: Certificate of origin simplifies the customs clearance process by providing the clear information on the origin of the product. Regulatory authorities use this CO methods to judge the suitability of product for good treatment and to ensure compliance with trade regulations.
- Trade Agreements: The Cos are required for products subject to the trade agreements and Free Trade Agreements (FTAs) between countries. According to these agreements the products of the member countries can benefit from low or no tariffs and increase the competition of traders within the framework of the agreement.
- Tariff Preferences: One of the main advantages of the certificate of origin is role in removing customs requirements and reducing import cost. Many countries offer tariffs on products from certain countries or under certain trade agreements. By having an authorized CO, retailers can take advantage of these discount offers and strengthen their products globally.