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Certificate of Origin

A document that certifies the country where goods were produced, used by customs to apply the right duties.

What is Certificate of Origin?

A certificate of origin (CO) is a document certifying the country in which goods were wholly obtained or last substantially transformed, as determined under the applicable rules of origin. Non-preferential certificates are used for purposes such as trade defence measures, embargoes, statistics or buyer and letter of credit requirements, and are typically issued by chambers of commerce under the ICC World Chambers Federation International Certificate of Origin Guidelines. Preferential proofs of origin entitle the importer to reduced or zero duty under a free trade agreement or preference scheme. Depending on the agreement they take the form of an issued certificate such as the EUR.1 or a self-certified origin statement made out by the exporter on the invoice. The EU's Registered Exporter system (REX) is one example of self-certification, under which registered exporters issue statements on origin.

Why it matters for forwarders

Origin determines both the duty rate and whether measures such as anti-dumping duties apply, so a wrong or missing proof of origin can cost the importer the preference or expose it to retrospective duty demands. Preferential origin must meet the specific product rule of the agreement, not simply the country where goods were shipped from, and customs can verify origin after import. Forwarders handling documentation should check which form the agreement requires, whether direct transport or non-manipulation rules apply to transhipped cargo, and whether the certificate must be presented at import or only held on file. Non-preferential COs issued by chambers often require supporting invoices or manufacturer declarations, so build lead time into the export schedule. Keep copies for the retention period set by the importing country, because origin verification requests can arrive years later.

CO FAQ

What is the difference between preferential and non-preferential origin?

Preferential origin qualifies goods for reduced duty under a trade agreement or scheme. Non-preferential origin is used for other measures such as anti-dumping duties, quotas, labelling and statistics.

Who issues a certificate of origin?

Non-preferential certificates are usually issued by chambers of commerce. Preferential proofs are issued by customs or designated authorities, or self-certified by the exporter, depending on the agreement.

Is a certificate of origin required for every shipment?

No. It is needed when the importing country requires it, when a letter of credit or the buyer demands it, or when the importer claims a preferential duty rate under a trade agreement or scheme.

What is a REX statement on origin?

It is a self-certified origin statement made out by an exporter registered in the EU's Registered Exporter system. For consignments of originating goods valued below EUR 6,000 any exporter can make one without registering.

Sources

  1. Certificates of Origin Guidelines, International Chamber of Commerce / World Chambers Federation
  2. The Registered Exporter system (the REX system): general information, European Commission, DG TAXUD

Rules and figures change. Check the current text with the issuing body before relying on it.

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