Certificate of Origin Services in India – Process, Types & Documents

A Certificate of Origin is a document that defines the country of origin of the goods exported in accordance with the origin rules. It can be used by the importer, customs officials, and other involved parties to establish the origin of a shipment. It can also facilitate an eligible importer to claim preferential customs duty where appropriate, depending on the destination country and its applicable trade agreement. Indian exporters can avail PSR Compliance services to understand the documentation requirements, prepare application details and navigate through the applicable electronic filing process which are required for Certificate of Origin. Our support applies to exporting businesses in the manufacturing, agricultural, processed food, textile, machine manufacturing, and other eligible sectors.

Our Certificate of Origin Consultant service can help businesses understand the difference between a preferential certificate and a non-preferential certificate, the supporting documents that are needed, and how to prepare to submit to the system and an authorised issuing agency.

What Is a Certificate of Origin?

A Certificate of Origin is a trade document which verifies the country of origin of exported products. It is frequently issued when the importer, customs authorities or trade agreement demands proof of the origin of the goods. The country of origin does not have to differ from the country from which the goods are sent. It can be, for instance, goods produced in India and exported to the UAE, where the country of origin will be India. The products, however, which may be made in another country and later stored or transported from India, do not automatically be considered as Indian origin products. The applicable origin determination will be based on the following: product manufacturing, substantial processing, materials used, and the rules for shipment.

A Certificate of Origin may be required for:

Types of Certificate of Origin

There are two types of Certificates of Origin: preferential and non-preferential. This will depend on where the goods are sent, what kind of trade agreement applies, where the goods are coming from, and on the importer's needs.

1. Preferential Certificate of Origin

A Preferential Certificate of Origin serves as evidence for preferential customs treatment under preferential agreements, such as a Free Trade Agreement (FTA), a Preferential Trade Agreement (PTA), or any other applicable preferential agreement. In this type of agreement, the goods might be eligible for customs duty exemptions or low customs duties in the country of import. But tariff benefits are not guaranteed. The product has to comply with the established rules of origin in the agreement, and the importer has to fulfil the relevant conditions.

Common considerations include:

PSR Compliance can guide exporters on the documents needed for an application for a Preferential Certificate of Origin and what the documents may need to contain for the particular trade arrangement.

2. Non-Preferential Certificate of Origin

A Non-Preferential Certificate of Origin is similar to a preferential certificate of origin, except that it does not offer preference under an FTA or PTA. This certificate can be requested by the importer for customs clearance, commercial documentation, trade compliance, and more in the destination market. It may be applicable if the overseas buyer asks for evidence of origin but isn't claiming a preferential customs duty rate under a trade agreement.

PSR Compliance is able to help business understand the non-preferential Certificate of Origin application process, to gather the necessary information and to determine the pathway for applying.

Benefits of a Certificate of Origin (COO)

The Certificate of Origin is one of the crucial documents in connection with the export trade, as it acts as proof of origin of a shipment. Its importance is based on the laws of the country to which it is being exported, the product being exported, the trade agreement involved, and the requirements of the buyer.

Customs clearance and import requirements.

Certain importing countries require a Certificate of Origin as part of their customs requirements. The appropriate certificate allows the importer to prove the declared origin of goods, if necessary.

Eligibility for preferential tariffs

If there is a Trade Agreement applicable to the country of origin, a Preferential Certificate could assist the eligible importer in obtaining reduced customs duties. Must comply with the rules of origin, and other conditions must be met.

The requirements for buyers and distributors.

Import documentation may be completed in advance of shipment to overseas buyers requesting a certificate. Preparing the necessary documents ahead of time can help exporters satisfy contractual requirements.

International trade compliance

Customs controls, trade remedies and other import regulations may all have relevance to origin information. Consistently accurate declarations enable businesses to keep a proper export record.

Reduced documentation errors

Invoices, packing lists and other shipping documents can be prepared along with origin information to help detect discrepancies before they are submitted.

Documents Required for Certificate of Origin

The documents required for a Certificate of Origin depend on the product, destination country, issuing agency, and certificate category. Commonly required documents and information may include:

Certificate of Origin Application Process in India

The Certificate of Origin application process includes submitting the shipment detail, selecting the appropriate category of certificate, and filling out the application via the electronic platform and authorised issuing agency.

Step 1: Identify the export requirement

Verify the country of destination, product specifications, buyer's needs, and preferential or non-preferential certificate.

Step 2: Gather shipment and origin information

Prepare the commercial invoice, packing list, product description, origin, etc., and other relevant documents for the application.

Step 3: Fill in the necessary registration

Provide registration on the designated electronic platform. The exporter may require an Importer Exporter Code (IEC), contact information, and an accepted electronic signing method, depending on the process to which it applies.

Step 4: Prepare and submit the application

Fill out shipment, product, invoice, and origin information in the appropriate application. Attach supporting documents and sign the appropriate declaration and signatures.

Step 5: Issuing agency reviews the application

The required information is submitted to the issuing agency for verification against the Certificate of Origin Requirements. May ask for more details or clarification before making a decision.

Step 6: Accept and acknowledge the certificate

The certificate is to be issued via the relevant system, if approved. Take a moment to verify the certificate number, origin information, invoice numbers, and other speculations prior to presenting it to the importer. The exact process may vary by certificate type and trade agreement. Exporters should consult the official DGFT Certificate of Origin platform for current application procedures and relevant notices.

PSR Compliance can help exporters understand the process, organise the necessary information, and prepare the supporting documents within the agreed Certificate of Origin Registration Service scope.

Certificate of Origin Fees and Processing Time

The cost and processing time for a Certificate of Origin will vary depending on the certificate type, issuing authority, trade agreement, documentation, and type of shipment.

How is the Certificate of Origin cost determined?

If an exporter works with a service provider, the total cost may comprise the issuing agency's certificate fee, the platform and/or transaction fees that may apply, and professional assistance fees. Preferential and non-preferential applications might have different procedures. In certain cases, further supporting evidence or corrections are needed in order to provide a certificate.

Before you go ahead, PSR Compliance can give you a breakdown of what you're expecting to receive for your service and tell you what the applicable fee requirements are.

What is the processing time for a Certificate of Origin?

This can take up to 60 days depending on the extent of the application, the review of the application by the issuing agency, the category of the certificate, and if there is any need to clarify the application. Inconsistent invoice information, missing origin documentation or supporting documents may result in a delayed application. However, it is advisable for the exporters to prepare their documents prior to the intended shipment.

No specific processing time should be assumed based on the agency's current requirements; check to be sure!

Eligibility Criteria for a Certificate of Origin (COO)

Businesses exporting goods from India can apply for a Certificate of Origin (COO) if they can establish the country of origin of their products and provide the required export documents.

Who Is Eligible to Apply?

Common Mistakes to Avoid When Applying for a Certificate of Origin

Inaccuracies in the documentation for exports can cause delays, or the application may be returned to be corrected. Before submitting, the following points should be reviewed by businesses.

• Selecting the wrong category of certificate: Ensure that the importer needs a preferential or a non-preferential certificate.
• Incorrect origin declaration: Do not presume that products coming from India are automatically Indian-origin products. Provide the appropriate origin criteria.
• Product information does not match on invoice: Make sure the product information and quantity match in each invoice, as well as any other shipment-specific detail.
• Did not include supporting evidence: Maintain manufacturing, sourcing, and supplier records for use when required by applicable origin rules.
• Wrong choice of agreement: Make sure that an agreement has been selected, and for preferential certificates, ensure that it applies to the country of destination and the product, and that the goods meet the agreement's conditions.
• Applications made too late: Begin application preparation early in preparation for the application dispatch date and allow time for review or clarification.
• Ignore certificate verification: If a certificate has been issued, check it thoroughly and if available, use the certificate verification process.

Why Choose PSR Compliance for Certificate of Origin Assistance?

With various countries, product types, and trade agreements involved, export documentation demands detail. PSR Compliance assists businesses with an understanding of the documentation process and prepares the business for the requirements applicable to the Certificate of Origin.

1. Custom documentation advice for your shipment: Conditions for the Certificate of Origin could vary depending on the goods to be exported and the markets to which they are going. We assist you in finding the correct documentation and information that you need to present in your application.

2. Help with applying for the app: Our service prioritises assisting our exporters in the organisation of shipment details, reviewing the supporting documents and understanding the applicable filing procedure.

3. Guidance for preferential and non-preferential certificates: The selection of the type of certificate is crucial. We guide businesses to know the difference between the two types and to determine the needs of the business for the intended export transaction.

4. Support for first-time and regular exporters: Knowing how to document your export order correctly can help to enhance the export process, whether you are shipping your first International order or dealing with a regular export order.

5. Understand and have clarity on the process and costs: We guide you through the process, the required supporting documents, and fees before you apply. Issuance is subject to review and approval of the designated agency.

Get Professional Assistance for Your Certificate of Origin

The need for proper origin certification will help exporters comply with trade obligations and also deal with the requirements that overseas buyers may have regarding documentation. PSR Compliance will aid companies requiring Certificate of Origin services, as it will help them understand the process of filling out the form and organizing their documents. Contact PSR Compliance to talk about your Certificate of Origin needs and documentation costs.