What is a Certificate of Origin?

The certificate of origin refers to the document used by the exporter to show the origin of goods when they reached the destination. The document is used to a certain the origin of the goods imported to satisfy financial or custom requirements.

When a Certificate of Origin is Used

A Certificate of Origin (CO) is an important document in the international business that helps the exporter to prove the country of origin of the products. It is also used as a declaration by the exporter. The CO occurs in two different types which include; non-preferential and preferential. 

A Non-Preferential CO certifies the country of origin of the goods but are not subject to any preferential treatment. On the other hand, preferential Cos certify the origin of the goods, and it is subject to preferential treatment such as reduced tariffs, and other exemptions. 

Most of the traders in the international markets use the agents to the delivery of the trade documents to deliver their products to various destinations. 

Besides agents, there are also international bodies such as customs authorities, or ministries in some countries that have the privilege to deliver these documents. Some of these organizations include ICC WCF International Certificate of Origin (ICO). 

The issuance of such trade documents help the countries to avoid tax evasion, and many countries rely on the network of chambers and experts to deliver the documents. The delegation of these documents began after the signing of the Geneva Convention in 1923. 

The ICC WCF International Certificate of Origin (ICO) Council was established to improve and promote the functionality of the chambers as the main agents for issuing trade documents. This was meant to be meet through Coordinated and vigorous lobbying with international, regional and national governments and agencies via ICC structures. These bodies are based on the guidelines stated on the international COs guidelines. 

The achievement of the objectives is also based on the development of various training programs to improve the level of professionalism. The bodies also seek for liberalization of the issuance of the preferential COs. These guidelines present in details the procedures in the international trade for the issuance of both preferential and non-preferential COs. This set of international regulations enhances the trust and integrity of the CO accreditation chain the traders. That benefits both the international customs administrators and traders. The international guidelines;

• Enhances transparency in the standard procedures issuance
• provide a guarantee for responsible, independent, and accountable issuance
• ensure credibility to the COs issued by chambers of business
• increases the acceptance level bus the business and the custom administration

The CO manual covers:

• The purpose and use of COs;
• Language and definitions
• the authority and role of chambers;
• the region of issue;
• distribution and printing of forms;
• issuing and pricing fees;
• presents the process of issuing
• verification and determination of origin;
• validating documents;
• prohibitions and concessions;
• requirements for training;
• problems or changes in the certificates of origin;
• a supplement for CEOs; and
• Printable sample forms and letters

The widely used guidelines are translated into six languages. They are considered to contribute to the harmonization of the procedures for issuance. They also create an efficient and effective environment to carry out international trade. The ICC WCF focuses on assisting the t chamber leaders in promoting universal certification processes and standards to serve the chamber of commerce better, as well as customs administrations and traders. 

The Accreditation Chain ascertains that chambers are globally interconnected and mutually responsible, assuring businesses, banks, traders, and customs administrations that COs are delivered in harmony with worldwide best practices. The accreditation of the chambers has many advantages to the members. Being a member of ICC WCF international certificate of guidelines help the traders to receive a high level of quality and transparency in the issuance of trade documents. Some of the benefits of becoming a member of CO Accreditation Chain include:

• strengthened credibility to CO issuing;
• increased level of acceptance by customs administrators and exporters;
• ability to offer an assurance of independent, transparent, trustworthy and accountable issuing processes;
• enhances security and defense against possible false declarations;
• an assurance of compliance with worldwide issuance standards; and
• the worldwide affiliation and acknowledgment by the use of ICC WCF CO label on CO forms.

The verification website for CO enable the custom administrators to a certain the authenticity of the COs issued to the traders by the accreditation chain. This platform helps in reinforcing the mutual trust between the customs authorities and the chambers. This occurs by ensuring that the COs issued to meet the international standards. 

The chambers and the customs authorities only to develop unique codes that conform with the codes presents in the accreditation site. This provides access to the date of issuance, basic references, and the name of the applying company. The contact information of the issuing chamber is also present to the customs and accredited chambers members in case of legitimacy concerns. In the event, there are any legitimacy concerns. If a CO number is or not issued by an accredited chamber, an immediate notification will be sent. 

Due to increasing concerns on fraud and the need to improve the security of the supply chain, the chambers provide an online CO service to create a secure and safe trading environment and also increase the transparency as well as saving costs and time. Electronic Certificates of Origin (eCO) on the other hand comprises of measures to safeguard the trade such as online verification of the authenticity of the document and the watermarking technology. The eCO also offer electronic application digital rubber stamps and the signatures of the authorized officials. This ensures a higher level of reduced costs, transparency, reduce costs and save time among exporters, importers, customs administrations, banks, and stakeholders.

What is the eCO Task Force?

Chambers of Commerce issue a many numbers of CO annually. Therefore, to maintain the rapid shift to e-Business and improve efficiency, eCO systems are considered to be appropriate by the chambers. In this regard, a dedicated task force was established and charged with the following missions;

• improving and increasing the level of appropriateness of eCO by stakeholders such as banks, customs administrations, importers and insurance companies.
• Safeguarding the confidentiality and the integrity of eCO details;
• Determining the standards required for the issuance of eCO;
• Creating awareness of eCO developments;
• Organizing forums and offer conferences for the new developments regarding COS
• Supporting the implementation of eCO services internationally.