In terms of international trade, the Certificate of Origin (CoO) has become a very vital document, establishing the origin of goods exported from India. This is a document showing the country where the products were manufactured, produced, or obtained, issued by the Directorate General of Foreign Trade. DGFT CoO allows cross-border trade by enabling exporters to establish the origin of goods and further ascertain the entitlement of products for preferential tariff treatments.

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DGFT (CoO) Certificate of Origin: A Gateway to Preferential Tariffs in Global Trade

The Certificate of Origin is an autonomous instrument of commercial policy for the promotion and continuance of mutual trade, leading toward economic cooperation between nations. It thus comes very close to the basic concept of tariffs, a traditional instrument of commercial policy.

The Certificate of Origin identifies and verifies this origin in trade. The country of production, manufacture, or obtainment of the goods is indicated in the document. Details such as these are considered very important in establishing the applicable tariff rates or preferential treatment provided for by trading agreements.

• Generally, tariffs are taxes levied upon the importation of goods and have been a mainstay of trade policy for centuries. Tariffs can be used to protect domestic industries from unwanted competition, regulate the volume of imports, generate revenues, or further strategic economic policy goals.
• The (CoO) Certificate of Origin is in line with the tariff system in that, like the latter, it aids customs authorities in using appropriate tariff rates according to the origin of the goods. The application avoids possible misclassification and false claims as to origin, which could lead to an application of inappropriate tariff rates during the import process.

Furthermore, the CoO has an important role in trade agreements and preferential trade arrangements. An agreement may involve reducing or eliminating tariffs on goods traded between participating countries. A Certificate of Origin would then be necessary to verify that such goods do qualify under the agreement and, therefore, enjoy such preferential treatment.

Who Shall Issue a DGFT (CoO) Certificate of Origin?

The Indian Chamber of Commerce and the Trade Promotion Council of India issue Certificates of Origin. These are the man­dal for proving that the commodities exported by Indian exporters are of Indian origin.

The government of the exporting country's nominated authorities issue a certificate of origin.

The exporter issues the certificate of origin, which may be stamped by a chamber of commerce and supported by a commercial invoice. The certificate of origin may be approved by the chamber of commerce before shipment.

The Export Inspection Council is the only agency to issue a Certificate of Origin under this Agreement. The government has also nominated certain agencies to issue Non-Preferential Certificates of Origin.

DGFT Online Platform for Issuance of Preferential Certificate of Origin (CoO)

The Directorate General of Foreign Trade designed a new online platform for issuing a Preferential Certificate of Origin. It shall be single-point access for Certificates of Origin under all trade agreements, including Free Trade Agreements and Preferential Trade Agreements. It was designed to provide a secure, electronic, paperless process to the exporters for obtaining CoOs.

Importance of DGFT (CoO) Certificate of Origin in International Trade and Customs Clearance

Another very important document in international trade is the certificate of origin, which identifies the country of origin of the exported goods.

• It proves that products have been either manufactured or produced in a specific country.
• The Certificate of Origin contains information on the nationality of the products that identify the country of origin and intended destination.
• The CoO is an integral determinant for the eligibility of goods for import and related customs duties which should be levied.
• The Customs Authorities require the Certificate of Origin for clearance purposes to prove that the goods comply with the import regulations of their destination country. It helps in the smooth movement of goods across borders.
• The document acts as one of the major determinants in assessing the origin or authenticity of products in international trade transactions.

Types of DGFT (CoO) Certificate of Origin

There are two categories of Export Certificates of Origin.

• Preferential Certificate of Origin
• Non-Preferential Certificate of Origin (NP CoO)

Preferential Certificate of Origin

It is issued for exports that qualify for tariff preferences under various trade agreements. The goods must be exported to countries with which India has such trade agreements involving tariff preferences.

This certificate is issued for goods that qualify for preferential tariff treatment in the matter of duty payment. It may involve the reduction of the standard tariff or complete exemption of tariffs. Preferential certificates are granted when two or more nations make a trade agreement where they include exemptions for goods imported or exported between them.

Non-Preferential Certificate of Origin (NP CoO)

On the other hand, a Non-Preferential Certificate of Origin merely certifies the origin of the exported goods but does not grant them preferential tariff treatment. Applicable for exports that do not qualify for tariff preference. CoO NP indicates that no kind of preferential treatment in the form of tariffs has been extended to the exported goods. Therefore, it requires due duties on the goods to be levied during the import/export process.

It contains different types of certificates that adapt to different scenarios of export and compliance with trade agreements.

Procedure for Applying for DGFT (CoO) Certificate of Origin

Applicants are required to first register themselves on the CoO portal before applying for an issuing certificate. The following are the steps to register:

• Enter the Common Platform Portal opened by DGFT
• Under online services, click "Online Exporter Registration".
• Insert the Class 2 or Class 3 Digital Signature Certificate (DSC) before starting the registration process. The DSC must have the embedded Importer-Exporter Code of the firm.
• Enter the IEC code, e-mail address, and mobile number as per the updated IEC details.
• The email address for correspondence can be modified through the DGFT portal under the service IEC Profile Management.
• Click "Save & Next" to continue the registration process.
• View the terms and conditions and click on "I Agree" and, finally submit the registration request.
• On successful registration, a password will be sent to the registered email id.
• Access the login screen and put the registered IEC as the username.
• The password received via email is to be used to access the portal.

After completing registration, log in to the CoO portal using the provided username and password to proceed with the application for issuance of the Certificate of Origin.

To Obtain a DGFT CoO online, apply through the following procedure:

• Enter the details in Common Platform: Log in to the Common Platform using valid credentials, viz. IEC number and the password received at the registered email ID after completion of registration on the portal.
• Fill in application details: Fill out the application form detailing all information regarding the Certificate of Origin.
• Attach digitally signed documents: Documents that are digitally signed and need to be presented in the application should be attached. These may include shipping bills, invoices, packing lists, and other supporting documents.
• Attach DSC: Attach a valid Digital Signature Certificate for document upload and application submission. DSC authenticates the documents submitted and views their integrity.
• Certificate Preview: Preview the application upon clicking on the preview certificate option. This allows one to view a draft of the application before finally submitting it.
• Make Payment and Submit: Continue making the necessary payment for the issuance of the Certificate of Origin. Upon completing the payment, apply for processing.
• Confirmation and Intimation: On applying, confirmation alerts shall be sent to the Registered email address and Mobile number given at the time of applying.

Documents required to obtain DGFT (CoO) Certificate of Origin

The following are the documents required to get a Certificate of origin:

• Shipping bills
• Bill of Lading/Airway bill
• Invoice Copy
• Packing List

Document preparation and gathering all the data needed to obtain a certificate of origin is an important task, and for each job, we have a different team to give our 100% efficiency.

Online application submission requires a DGFT Digital Signature Certificate as well. We have an in-house team to prepare DGFT DSC to avoid any type of delay in the process for obtaining CoO.

Conclusion

Obtaining a Certificate of Origin (CoO) from the DGFT is a structured process that requires attention to detail and adherence to guidelines. By following these steps and ensuring all documentation is in order, exporters can streamline their export process and comply with international trade requirements efficiently.