What is Certificate of origin? (COO)

 

Definition of Certificate of Origin

The Certificate of Origin is a vital document in the field of commerce, playing a key role in the export and import processes between buyers and sellers. It serves to indicate the authentic origin of exported or imported goods. Typically, this document is issued by legal authorities in the country of origin, either labeled as the Certificate of Origin or, if issued by the manufacturer, the Certificate of Manufacturing.

This commercial document enables merchants, importers, or customers to access comprehensive information about the origin of their goods and imported products. The Certificate of Origin should include details such as the product manufacturer's name, country of origin (e.g., China, Germany), product description, and quantity. Its significance lies in international transactions, ensuring compliance with diverse countries' regulations and import tariffs.

The Certificate of Origin is employed in international trade to identify and declare the genuine origin of goods, as well as to apply import and trade tariffs in various countries. Depending on each country's Chamber of Commerce policies, this document can be issued in either printed or electronic form. The validation of this certificate occurs through the stamping by legal authorities like the Chamber of Commerce in each country.

Additionally, this certificate is commonly utilized in commercial agreements and contracts to establish the origin of goods or services and guarantee that goods are delivered in accordance with contractual obligations. It serves as a crucial document in resolving commercial disputes and addressing potential objections in commercial transactions.

 

Where is the issuer of the Certificate of Origin?

The Certificate of Origin is typically not issued by various legal and competent authorities. In many countries, two primary authorities handle the issuance of a Certificate of Origin. The following section provides explanations, courtesy of Ahura Trade, regarding the reference of the certificate of origin issuer:

1. Government authorities and bodies: In certain countries, various government bodies and institutions, such as tax and customs agencies, commercial organizations, or the Ministry of Industry and Mines, are responsible for issuing Certificates of Origin. Hence, when importing from different countries, the exporter should request the certificate of origin from the relevant institution.

2. Chamber of Commerce, Industries, Mines, and Agriculture: In various countries, the Chamber of Commerce, Industries, Mines, and Agriculture plays a central role in issuing Certificates of Origin for manufactured goods. Therefore, in Iran, merchants and manufacturers should consult the Chamber of Commerce in their city (e.g., Tehran Chamber of Commerce, Isfahan Chamber of Commerce) to obtain comprehensive information on the Certificate of Origin preparation process.

According to each country's laws and regulations, the Chamber of Commerce, Industries, Mines, and Agriculture, or a legal authority, can be utilized to issue a Certificate of Origin. In any case, to obtain a Certificate of Origin, contacting the relevant authority in your city and adhering to the procedures and conditions for issuance is necessary.

 

What are the contents of the Certificate of Origin?

The Certificate of Origin contains various details indicating information related to the origin and primary place of production of traded goods or products. The following section outlines the information and contents mentioned in this certificate:

1. Full information of the producer/exporter: The certificate includes the name and complete details of the company or individual producing or exporting the goods or services.
2. Address of origin: The physical address of the producer's or exporter's office and factory, mentioned as the product's origin, is specified in the Certificate of Origin.
3. Country of origin of manufactured goods: The Certificate of Origin specifies the country from which the goods or products were produced or exported. This is crucial as goods may be produced in one country but exported to a third country.
4. Full description of the export product: The certificate provides comprehensive information related to the export product or goods, encompassing technical details, specifications, features, and the quantity of goods.
5. Customs tariff code or HS CODE: The Certificate of Origin includes the customs tariff code of the product, used to determine import tariffs. These codes generally consist of 8 main numbers specifying the nature and classification of the export goods.
6. Date of issuance of the Certificate of Origin: The date on which this commercial document was issued is also included in the certificate.
7. Seal and signature of legal reference: The certificate document must be signed by legal authorities, including the Chamber of Commerce of Mining and Agriculture Industries, which is the primary preparer and approver of this certificate.

The specific contents of the Certificate of Origin may vary based on the laws and regulations of the country of origin and the type of transaction. This information is typically used to verify the origin and authenticity of transactions in international trade and to apply import tariffs.