International Trade has more than 190 countries dealing with each other on a massive scale, leading to a lot of value addition and participation within each other. Hence, there emerged the need for the 'Certificate of Origin'. It certifies that goods in a particular export shipment are wholly obtained, produced, manufactured or processed in a specific country. They declare the 'nationality' of the product and also serve as a declaration by the exporter to satisfy customs or trade requirements. COs are requested by customs, banks, private stakeholders and importers for several purposes. Almost every country in the world requires CO for customs clearance procedures: when determining the duty to be assessed on the goods or, in some cases, the legitimacy of the import.
There are two types of COs that chambers can issue:
Non-Preferential COs; certify that the goods are subject to no preferential treatment. These are the primary type of COs that chambers can issue and are also known as "Normal COs".
Preferential COs; Certify that goods are subject to reduced tariffs or exemptions when exported to countries, extending such privileges. These COs tend to be closely associated with Regional Trade Agreements.
Indian Chamber of Commerce Services to Obtain CO's.
ICC issues non-preferential certificates of origin to both member and non-member companies. For obtaining a Certificate of Origin from the Indian Chamber of Commerce (ICC) regularly, exporters need to furnish ICC a permanent indemnity bond on a Non-judicial stamp paper of Rs 10/- only, duly notarized (format for Indemnity Bond is available with the Certificate of Origin Dept).
Documents to be submitted along with the application for Procurement of Certificate of Origin:-
A cover letter (on Original Letterhead) addressed to the Director-General, Indian Chamber of Commerce, for the issue of a Certificate of Origin / Certification of copies of Invoices / Packing List, etc.
In case of submission by Authorized Signatory attested copy of authorization letter must be attached.
Completed Certificate of Origin Form. Blank Certificate of Origin Forms must be purchased from ICC at the cost of Rs 70/- per set of 50 pc.
Along with Invoice, Packing List, Letter of Credit or Purchase Order or E-mail order (whichever is relevant) all the documents must be stamped and signed by the Exporter Applicant.
In case of goods which have been imported before being exported to another country, relevant clearance certificates from Customs Dept must be submitted to show that the goods entered the country legally after payment of all necessary taxes and duties.
The exporter must submit an additional set of documents for ICC records with each application for Certificate of Origin.
The cost of issuing a Certificate of Origin will depend on the number of pages submitted.
The Certificate of Origin will help you professionally expand your business and avoiding conflicts with other exporters of the same products, banks, Custom officers and importers. Explore more about the documents involved in the process of international trade through Ximpex. We help enterprises in overcoming challenges related to international trade. Ask your query to our experts now!
Author: Sachin Yadav