Proper documentation is considered one of the most essential requirements for international business because it facilitates seamless cross-border trade. Among such essential documents is the Certificate of Origin (COO).
This document is considered essential to confirm the source of the exported goods as well as the place of manufacture and origin. A certificate of origin proves crucial in deciding import duties, tariffs and other trade barriers.
In this blog, we will give you a complete overview of what is the certificate of origin, its different types, its importance, how to get them in Dubai, attestation requirements and all that you need to know.
Whether you are a business person, an exporter or just someone seeking information, read till the end to know all about this indispensable trade document.
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What is the Certificate of Origin?
A certificate of origin is an official document, which proves that the product was manufactured or processed in a specific country. It serves as evidence of the origin of the product and is used commonly in cross-border business transactions to fulfil customs and trade requirements. Many countries need the certificate of origin to apply preferential tariff levels or to check conformity with the signed trade bilateral agreements.
A certificate of origin can be requested by the exporter or the manufacturer. It must be delivered to the importer before the goods are exported.
It consists of details such as the country of origin of goods, exporter’s details, importer’s details, description of the goods and, most important of all, the stamp and signature of the Chamber of Commerce and Industry.
Meaning of Certificate of Origin
The Certificate of Origin is more than just a piece document, it is an attestation to the origin of goods. They act as evidence for the customs authorities and buyers to show that exported goods are according to the requirements of the trade agreements. This essential legal document is also crucial in maintaining transparency and fair trade practices.
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Importance of Certificate of Origin
Needless to say, the role of the Certificate of Origin is immense for international business and trade. The most important reason to obtain a certificate of origin is to clear customs. If some goods are exported without a certificate of origin, the customs authorities in the destination country will not allow them to leave the warehouse.
Failure to produce the correct certificate of origin or lack of them may lead to cases where merchandise is held up, fines are imposed or the merchandise is confiscated. It is a crucial document without which an international business cannot operate.
Types of Certificate of Origin
Certificates of Origin can be broadly categorised into two types – Preferential and Non-Preferential Certificates of Origin.
- Preferential Certificate of Origin:
- This type of certificate is given out under trading schemes to provide favourable tax treatment to the products being imported/Exported.
- It may include a reduction in the payment of normal tariffs or may also include a complete exemption of the tariffs.
- This usually happens when two or more trading nations reach an agreement to exclude such tariffs.
- Some examples include certificates under the agreements like the GCC trade agreement or the GSP.
- Non-Preferential Certificate of Origin:
- This category of certificates approves the origin of goods without providing any form of concession to the tariffs imposed on the goods.
- Often needed for products shipped to countries that have no trade agreements.
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Why Do You Need a Certificate of Origin?
A certificate of origin plays an important role in international business and trade. Here are certain important scenarios in which you would need to secure a certificate of origin;
- Compliance with Trade Agreements – Most bilateral or multilateral trade treaties like the Free Trade Agreement (FTA) demand a certificate of origin to enjoy a reduced customs duty.
- Determination of Duties and Taxes – The Certificate of Origin is also used by customs authorities to determine import duties and taxes.
- Legal Compliance – It ensures that goods meet the legal and regulatory standards that are expected in the importing country.
- Tariff Reduction – To qualify for the tariff benefits determined under the trade agreements, the businesses need to have a legal Certificate of Origin.
- Boosting Buyer’s Confidence – A certificate of origin is a good way to ensure the buyers that the product they are dealing with is genuine and authentic.
Who Issues the Certificate of Origin in Dubai?
The Dubai Chamber of Commerce and Industry plays a central role in issuing the Certificate of Origin. The Chamber makes sure that the information provided and the documents submitted are suitable to meet the international standards of certification.
Authorised bodies like trade associations and industry-specific organisations may also issue a Certificate of Origin in some cases. However, an overwhelming majority of certificates are issued by the Dubai Chamber of Commerce and Industry.
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Process of Getting a Certificate of Origin in Dubai
Obtaining a Certificate of Origin in Dubai is a straightforward process. The steps involved are as follows;
- Registration – The first step is to register the business on the online portal of the Dubai Chamber of Commerce and Industry.
- Application Submission – This can be done so by filling out an online form at the Dubai Chamber or by visiting the chamber in person.
- Submission of Documents – Along with the application submission, certain documents also need to be submitted. The documents include:
- Packing list.
- Copy of the trade license
- Copy of the invoice
- Bill of lading.
- Manufacturing declaration or proof of origin.
Note: Depending on the destination country, the document requirements may change.
- Verification – The Chamber checks the application and documents submitted to confirm their compliance.
- Fee Payment – Pay the pre-determined issuance fee for the Certificate of Origin.
- Certificate Issuance – After satisfactory confirmation of the details, the Certificate of Origin is made available to the applicant.
Purpose of Getting a Dubai Certificate of Origin
A Dubai Certificate of Origin is an essential legal document that facilitates cross-border trade. Some of the important reasons to get the Dubai CoC are as follows;
- Validating the authenticity of exported goods from Dubai.
- To meet the requirements of the importing country.
- Ensuring eligibility for preferential trade benefits under applicable agreements.
- The certificate is necessary to clear customs. An incorrect certificate or lack of the certificate may lead to delays and penalties.
- Facilitating smooth clearance of goods at the destination port.
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Is There Any Need for Certificate of Origin Validation/Attestation?
Indeed, there are scenarios in which the Certificate of Origin needs to be attested. Authentication by the concerned authorities is a declaration of the certificate’s validity and its ability to be legally used in a foreign country. Certificate of Origin Validation may be required under the following circumstances;
- Exporting to Countries with Strict Legal Requirements – Some countries require certificates to be attested for clearing the imported goods.
- Trade Disputes – To be used as legal support whenever there is controversy over the source of the products.
- Government Regulations – In some cases, the importing country’s government regulations may need the certificate to be duly verified and attested.
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Conclusion
A certificate of origin is a crucial legal and commercial document in international business that allows businesses to meet customs requirements and legal standards. Its importance spans various domains, from enabling preferential tariffs to boosting buyer confidence. The Dubai Chamber of Commerce and Industry makes it easy for businesses in Dubai to acquire this certificate facilitating ease of business.
Having an adequate understanding of a Certificate of Origin and the various conditions it has regarding attestation is imperative to make sure the business does not suffer from delays, penalties or disputes. Thus, by following the steps mentioned in the blog and keeping adequate documentation ready, businesses can ensure smooth and hassle-free international business and trade operations.
If you need professional help in obtaining the Certificate of Origin and getting it attested, you can contact SEPL Document Clearing LLC. Our team of professionals is always ready and available to help you through the process to ensure a smooth outcome.
Frequently Asked Questions
- What is a certificate of origin?
It is a legal and commercial document crucial for international business and trade. It verifies the origin of goods by clearly identifying where the said product was manufactured/produced.
- Is a certificate of origin compulsory?
Yes, it is an essential requirement, especially for businesses operating internationally.
- How to apply for a Dubai Certificate of Origin?
Applicants looking to obtain a certificate of origin can apply online using the Dubai Chamber of Commerce and Industry website. An offline application can also be submitted by visiting the office.
- What is a Certificate of Origin used for?
Its most common use is to confirm the nationality of the product being export