The Certificate of Origin (COO) issued by the Directorate General of Foreign Trade (DGFT) is a crucial document for exporters. It confirms to the origin of goods and is often required by importing countries to determine eligibility for preferential tariffs and trade agreements. The certificate of origin (COO DGFT) has details regarding the product, its destination, and the country of export.
Certificate of Origin is issued to the exporters who are willing to export their products outside India and in order to verify the products, the exporter has to produce various documents before the authorities to prove that the product has been produced or manufactured in India.
Issuing Authority of Certificate of Origin/ COO
The Certificate of Origin is issued to FTAs/PTAs generally by the Chamber of Commerce. However, the government has not mandated to apply for COO through online mode only using Digital Signatures. Before 31st October 2021, the government was accepting the manual/ physical COO however, the same has been discontinued from 1st November 2021.
Types of Certificate of Origin
Preferential Certificate of Origin- The Preferential Certificate of Origin is issued for exports that qualify for tariff preferences under specific trade agreements. It is mandatory to export goods to countries involved in such trade agreements where India receives tariff preferences.
This certificate is issued for goods that qualify for preferential tariff treatment regarding duty payment. It may involve a reduction of the standard tariff or a complete exemption of tariffs. Preferential certificates are granted when two or more nations establish a trade agreement that includes exemptions for goods imported or exported between them.
Non-Preferential Certificate of Origin (NP CoO)- On the other hand, the Non-Preferential Certificate of Origin certifies the origin of the exported goods but does not provide preferential tariff treatment. It is applicable for exports that do not qualify for tariff preferences. CoO NP indicates that the exported goods do not receive any preferential tariff treatment. It requires the levying of due duties on the goods during the import/export process.
Role of Certificate of Origin in Tariff Policy and Trade Agreements
The Certificate of Origin (CoO) is an autonomous commercial policy instrument to promote and sustain mutual trade and foster economic cooperation between countries. It is closely linked to the fundamental concept of tariffs, a traditional commercial policy instrument.
At its core, the Certificate of Origin identifies and verifies the origin of goods being traded. It provides information about the country where the goods are produced, manufactured, or obtained. This information is crucial in determining the applicable tariff rates or preferential treatment that may be granted under trade agreements.
- Tariffs, in general, are taxes imposed on imported goods and have been a cornerstone of trade policy for centuries. Tariffs can be used to protect domestic industries, regulate imports, generate revenue, or promote strategic economic objectives.
- The Certificate of Origin aligns with the tariff system by enabling customs authorities to apply the appropriate tariff rates based on the origin of the goods. It helps prevent misclassification or false claims about the origin of goods, ensuring that the correct tariff rates are applied during the import process.
Moreover, the CoO plays a significant role in trade agreements and preferential trade arrangements. These agreements often involve reducing or eliminating tariffs on goods traded between participating countries. The Certificate of Origin becomes essential in verifying that the goods meet the criteria specified in the agreement and are eligible for preferential treatment.
The Importance of Certificate of Origin in International Trade and Customs Clearance
- It proves that the products were manufactured or produced in a specific country.
- The Certificate of Origin contains essential information about the products, including their nationality and details such as the country of origin and the intended destination.
- The CoO plays a significant role in determining the eligibility of goods for import and whether customs duties should be imposed on them.
- Customs officials require the Certificate of Origin for customs clearance procedures, ensuring compliance with import regulations and facilitating the smooth movement of goods across borders.
- This document serves as a key determinant in assessing the origin and authenticity of products in international trade transactions.
DGFT Online Platform for Preferential Certificate of Origin Issuance
The Directorate General of Foreign Trade (DGFT) has developed a new online platform for issuing a Preferential Certificate of Origin (CoO). This platform is single-point access for Certificates of Origin under all trade agreements, including Free Trade Agreements and Preferential Trade Agreements. It has been specifically designed to provide exporters with a secure, electronic, and paperless process for obtaining CoOs.
Certificate of Origin (CoO) Issued for Exports from India under Various Trade Agreements
The e-platform for Certificate of Origin (CoO) issuance facilitates exports from India under several trade agreements. The following trade agreements are currently applied and issued through the electronic platform:
- ICPTA – India Chile Preferential Trade Agreement
- SAFTA – South Asia Free Trade Agreement
- SAPTA – SAARC Preferential Trade Agreement
- IKCEP – India Korea Comprehensive Economic Partnership Agreement
- IJCEPA – India-Japan Comprehensive Economic Partnership Agreement
- AIFTA – ASEAN India Free Trade Agreement
- ISFTA – India Sri Lanka Free Trade Agreement
- APTA – Asia Pacific Trade Agreement
- GSP – Generalized System of Preferences
- GSTP – Global System of Trade Preferences
- IMCECA – India Malaysia Comprehensive Economic Cooperation Agreement
- ISCECA – India Singapore Comprehensive Economic Cooperation Agreement
- India-Mercosur Preferential Trade Agreement
- India-Thailand Early Harvest Scheme
- India-UAE Comprehensive Economic Partnership Agreement (India-UAE CEPA)
- ICPTA – India Chile Preferential Trade Agreement
These trade agreements cover a diverse range of countries and regions, enabling exporters from India to avail themselves of preferential trade benefits and tariff concessions when exporting goods. The electronic platform streamlines the CoO issuance process, ensuring efficiency, accuracy, and compliance with the respective trade agreements.
Documents Required for DGFT CoO
- Shipping bills: These documents contain details about the shipment, including the description of goods, quantity, value, and other relevant information.
- Bill of Lading/Airway bill: This document serves as proof of shipment and contains details such as the name of the carrier, the consignor, the consignee, and the destination.
- Invoice Copy: An invoice copy provides a comprehensive breakdown of the exported goods, including their description, value, and other relevant commercial details.
- Packing List: This document specifies the contents of each package within the shipment, including the type of packaging, dimensions, and weights.
Procedure to Apply for Certificate of Origin
- Visit the Common Platform Portal launched by DGFT
- Click on “Online Exporter Registration” under the online services section.
- Insert the Class 2 or Class 3 Digital Signature Certificate (DSC) before initiating the registration process. Ensure that the DSC contains the embedded Importer-Exporter Code (IEC) of the firm.
- Enter the IEC code, email address, and mobile number as per the updated IEC details.
- Use the IEC Profile Management service on the DGFT website to update the preferred email address for communication purposes.
- Click on “Save & Next” to proceed with the registration.
- Review the terms and conditions, select “I Agree,” and submit the registration request.
- A password will be sent to the registered email address upon successful registration.
- Go to the login screen and enter the registered IEC (10-digit alphanumeric/numeric code) as the username.
- Use the password received via email to log in to the portal.
Once the registration process is completed, you can access the CoO portal using the provided username and password, enabling you to proceed with the application for Certificate of Origin issuance.
To apply for a Certificate of Origin (CoO) online, follow the procedure outlined below:
- Login to the Common Platform: Access the Common Platform using valid credentials, such as the Importer-Exporter Code (IEC) number and the password received after registering on the portal.
- Fill in Application Details: Complete the application form by providing all the information about the Certificate of Origin. Ensure that all required fields are filled accurately.
- Attach Digitally Signed Documents: Attach the digitally signed documents required for the application. These documents may include shipping bills, invoices, packing lists, and other relevant supporting documents.
- Attach Digital Signature Certificate (DSC): Include a valid Digital Signature Certificate for document uploading and application submission. The DSC helps authenticate the submitted documents and ensure their integrity.
- Preview the Certificate: Review the application by clicking the preview certificate option. This allows you to view a draft of the application before final submission.
- Make Payment and Submit: Proceed to make the necessary payment for the Certificate of Origin issuance. Once payment is completed, apply for processing.
- Confirmation and Notification: After applying, a confirmation alert will be sent to the registered email address and mobile number provided during the application process.
FAQs
What is a Certificate of Origin (CoO)?
A Certificate of Origin (CoO) is a document that certifies the origin of goods exported from a particular country. It provides information about the manufacturing process and the country in which the goods were produced.
What is the role of the DGFT in issuing Certificates of Origin?
The Directorate General of Foreign Trade (DGFT) is the authority responsible for issuing Certificates of Origin in India. It ensures that exported goods comply with the rules of origin specified by international trade agreements and domestic regulations.
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