One of the data points of international shipping is the country of origin. For most shippers and most shipments, the origin country is from where the goods ship. However, the country of origin commonly refers to where the goods are made. Or, in the case of agriculture or mining, grown, raise or extract. Get the benefit of free trade by including a certificate of origin.
The country of origin helps customs in the importing country to determine the rate of duty of import. The country of origin support other regulatory actions. These can include quarantine, import quotas, to ensure the goods comply with relevant regulations.
Most shippers consider the country of origin is from where the goods are sent. While this works for many shipments - especially single packages - shippers should know how the country of origin affects clearance.
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In this post regarding duty, we review:
Always confirm compliance with the consignee/ importer and regulatory authorities prior to shipping. The information in this post and all Jet Worldwide online content is for general information only.
A CO is a trade document. It attests that goods in an export shipment are wholly obtain, production, manufacture, or processing in a particular country.
A Certificate of Origin or Declaration of Origin (often abbreviate to C/O, CO or DOO) is a document necessary in international trade. It attests that the product for consideration as originating in a particular country.
A certificate of origin / declaration of origin is generally via the exporter or the manufacturer. It may be subject to official certification by an authorized third party.
It is often submitted to a customs authority of the importing country. It is primarily used to justify the product's eligibility for preferential duty rates.
Most modern trade agreements do not require a separate certificate of origin. In its place, a certification statement can is on the shipping paperwork. The statement is often part of a the customs invoice. In the post, we use the term certificate and certification interchangeably.
Some countries outside of Canada that require a certificate of origin for goods entering that country. They may want to limit imports from certain countries for political or commercial reasons.
A certificate of origin is not a systematic required for most consignments. If you wish to claim preferential duty free import, you must include a certification of origin. The primary purpose of the CO is to authenticate the country where goods are produced.
The country of origin is determined by the origin of the parts and where the production process takes place. The rules of origin are outlined in the applicable trade agreement. Simply from where goods are shipped does not define their country of origin.
Exporters and producers generally issue a certificate of origin. The certificates and certification statements themselves are straight forward.
Under the United States-Mexico-Canada Agreement (USMCA), the terms "certification of eligibility" and "certification of origin" refer to two distinct documents.
Certification of Eligibility and USMCA Tariff Preference Levels (TPL's)
This document necessary for for textile and apparel imports under provisions for tariff preference levels (TPLs). It certifies that the goods meet the necessary conditions to qualify for tariff preferences under USMCA. The certification serves to confirm production in compliance with the specific requirements
A certification of origin was is necessary to verify that goods meet the rules of origin requirements for preferential tariff treatment. The key difference versus a Certification of Eligibility lies in their application for specific commodities (notably textile, apparel and automotive) under the USMCA's TPL provisions
Most countries have a default duty rate referred to as the Most Favoured Nation (MFN) rate. If goods are arriving from a country other than a MFN, a higher rate of duty is assigned. The country of origin in this case refers is from where the goods were shipped.
Goods imported under the origin rules of a trade agreement, can benefit from a preferential reduced rate of duty. Most often, qualifying origin goods under free trade agreements can benefit from duty free import. Read more: Benefit from Canada's free trade agreements.
Read More: Country from where goods were shipped versus their country of origin
A quota is a restriction on the quantity or value of a particular good for import. Related to a period of time. Quotas are a trade policy tool to protect domestic industries. Import quotas may be applied to goods from specific countries, or they may be applied to all goods regardless of their country of origin.
A country may have a general quota on the import of a particular category of goods or only from certain countries. Common categories subject to quotas include wearing apparel and agricultural products.
Knowing the country of origin of both exports and imports is an important data point. It is for statistical analysis by both governments and the private sector.
The country of origin can also be important to the company you are selling international. Manufacturers often track the origin of parts in order that their goods quality under the origin rules of a specific country.
Determining or qualifying under the country of origin rules can be complex. One of the data points considered is the percentage of origin of components. Or parts of a product that were sourced from a particular country. Simple assembly in a specific country, for example, does not automatically qualify the goods under country origin rules of free trade agreements. For example, a trade agreement may provide for reduced tariffs on goods assembled using a minimum percentage of origin parts.
Most modern trade agreements allow a certification of origin to on existing shipping paperwork, such as a commercial invoice. Most rules set the data required but not a specific format. We recommend including both a certification of origin on the invoice for customs and a separate certificate of origin. Useful information: Verify your invoice for customs has the necessary information.
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Carriers, customs, brokers and other industry professional often refer to the certificate of origin as the COO. Read more about customs brokers.
The elements of a certificate of origin varies based on specific requirements of a specific trade agreement.
The required data of a certificate of origin includes:
It is important to ensure that the certificate of origin is accurate and truth full. Providing false or misleading information on a certificate of origin can result in penalties or fines.
The term "certificate of origin" can mean different things depending on the application and regulation authority. Different types of certificates of origin include:
Canada benefits from an extensive list of Free Trade Agreements with the worlds leading economies. While most the required key data points are the same, the certification forms are unique to each country.
Certificate of origin for USMCA to USA
When choosing a shipping method, you will need to consider factors the size and weight and the time frame. It may be helpful to compare quotes from different carriers to find the best option for your needs.
Jet Worldwide provides Canadian and global logistics. Our support refers to the various systems and services regarding international and Canadian movement of goods. This can include things like transportation, storage facilities, and supply chain management. Our logistics support augments your team by not being beholden to a specific carrier or process.