Certificate of Origin
A Certificate of Origin (COO) is an official export document that certifies the country in which goods were manufactured, produced, or processed. It is usually issued by a chamber of commerce or another authorized body and may be required by customs authorities in the importing country.
Purpose of a Certificate of Origin
- Customs clearance: Many countries require COOs to determine whether goods are eligible for import and to assess any applicable tariffs or duties.
- Trade agreement benefits: Preferential COOs (e.g., under free trade agreements like USMCA, EU trade deals, ASEAN agreements) allow exporters to claim reduced or zero tariffs if the goods meet specific rules of origin.
- Verification and compliance: They help prevent fraud by ensuring that goods come from legitimate sources and comply with trade regulations, sanctions, or quota restrictions.
- Buyer requirements: Some importers request a COO as part of their procurement process to verify supply chain transparency or meet regulatory standards.
Types of Certificates of Origin
- Non-preferential COO: Certifies the country of origin but does not grant tariff reductions; mainly used for customs clearance.
- Preferential COO: Issued under specific trade agreements to qualify goods for reduced duties or preferential treatment.
In short, a Certificate of Origin is a key trade document that proves the origin of exported goods, supports customs compliance, and may unlock tariff benefits under international trade agreements.