Certificate of origin (CO)

The exporter usually prepares the certificate of origin, and in many countries a chamber of commerce or another authorized body certifies it. Customs at destination uses origin, which is not always the country the goods ship from, to decide which duty rate applies, whether anti-dumping duties or quotas apply and whether the goods may enter at all. Origin follows rules of origin, such as where the last substantial transformation of the goods took place.

There are two broad kinds. A non-preferential certificate simply confirms where the goods come from. A preferential certificate, or an origin statement made under a free trade agreement, lets the importer claim a reduced or zero duty rate, but only if the goods meet that agreement's specific rules of origin. Some agreements accept an origin declaration written by the exporter on the invoice instead of a separate certificate issued by an authority.

Typical problems are a certificate that does not match the commercial invoice on descriptions, quantities or HS codes, or a preferential claim the goods do not actually qualify for. Customs can verify origin claims after import and recover the duty that was saved, sometimes years later. Forwarders and customs brokers check that the certificate, the invoice and the transport document tell the same story before the import declaration is filed.