What is Certificate of Origin in India

When it comes to international trade, a Certificate of Origin (COO) is inarguably one of the most important documents. It officially certifies that goods in a shipment are wholly obtained, produced, manufactured or processed in a particular country. 

If a product is manufactured in India and exported to another country, the Certificate of Origin in India serves as proof that the goods originated in India. In this blog post, we shall discuss this certificate in a detailed manner.

Meaning of Certificate of Origin

A Certificate of Origin is an export document that establishes evidence that the goods exported from one country are manufactured, produced or processed in that country and confirms their country of origin for import purposes. This certificate is quintessential for customs clearance, determining tariff rates and ensuring compliance with trade agreements signed between India and other countries. The COO doesn’t merely state the country of origin. It also contains details such as the description of the goods, the exporter and importer details and the destination country of the shipment. 

Different COOs may apply depending on the exact type of trade being done. For example, the SAFTA Certificate of Origin is used in trade among SAARC member nations, such as India, Pakistan, Nepal, Bhutan and Bangladesh, to certify that goods qualify for preferential or reduced customs duties under the South Asian Free Trade Area (SAFTA) Agreement. 

Benefits of Certificate of Origin

Under many trade agreements and international treaties, anyone engaged in exporting or cross-border trade must be in possession of COO. Below, we have listed the main benefits associated with this certificate:

• Having the COO certificate is mandatory for moving goods from one country to another country.
• Without this certificate, customs clearance is not possible.
• Because of this document, customs officers are able to learn about the origin of goods.
• COO helps ensure that the goods being imported/exported aren’t illegal.
• For smooth trade, having a complete and accurate COO is absolutely essential.

Difference Between Non-Preferential and Preferential Certificate of Origin

A COO may be preferential or non-prefential. A preferential COO certifies that the goods do not qualify for any tariff benefits. On the other hand, a non-prefential COO certifies that the goods quality for reduced tariffs/duty-free access under a trade agreement. In the table below, we have explained the main differences between non-preferential COO and preferential COO:

Who Can Apply for a Certificate of Origin?

The following entities can and often apply for a COO:

Exporters

The most common COO applicants are exporters. They can be individuals or businesses sending goods from one country to another country. As an exporter, you’ll need to provide key details about the goods, where they come from and where they’re headed. The COO helps with this.

Manufacturers

Manufacturers that ship products directly overseas can apply for the COO too. This usually happens when the manufacturer is also listed as the exporter on the shipping documents.

Authorized Representatives

Sometimes, exporters prefer to have someone else handle the paperwork associated with the COO. In that case, authorized representatives can apply for this certificate on the exporter’s behalf. For this, an authorization letter is required to allow them to act as an agent during the application process. 

Documents Required for Certificate of Origin

Before starting the online application, keep the following documents ready:

• Import Export Code (IEC)
• Mobile Number & Email ID
• Class 3 Digital Signature Certificate (DSC) (DGFT compliant)
• Commercial Invoice (signed & stamped)
• Packing List / Product Description
• Declaration (stating goods are of Indian origin)

If you do not have DSC, Connect With Registrationkraft to get it in the shortest time possible.

How to Apply Certificate of Origin Online

To apply for certificate of origin online, follow the steps explained below:

Step 1: Registration on Portal

Begin by visiting Certificate of Origin portal. Then, you must register on the portal using your IEC number and email ID. During registration, you must attach your Digital Signature Certificate. After successful registration, you will receive User ID and Password.

Step 2: Login to Portal

Then, login using your newly created User ID and Password. You must also enter the captcha code. After you login, you will see the dashboard interface.

Step 3: Start New Application

Now, click on “New Application” and then select the type of certificate: Preferential or Non-Preferential (normal COO).

Step 4: Select Issuing Authority

Thereafter, choose the Issuing Agency, Regional Office and Issuing Office (nearest location).

Step 5: Fill Exporter Details

Enter exporter details. Then, choose whether you want postal delivery (Yes/No) for the certificate.

Step 6: Enter Consignor & Consignee Details

Fill the details related to Exporter (Consignor) and Importer (Consignee).Then, mention the Exporting country (India) and Importing country (e.g., Nepal, etc.). You must add complete details of the address. 

Step 7: Shipment Details

Enter route details (by air/sea/road), Port of loading/shipment and LC details (if applicable).

Step 8: Invoice Details

Add Export Invoice Number, Invoice Date, Invoice Value and Currency (INR/USD). You must convert INR value into USD if required.

Step 9: Add Product Details

Enter details of product, including HSN Code of 8 digits, Product Description, Quantity & Unit, FOB Value and Preference Criteria. You can upload multiple products with the help of Excel. 

Step 10: Upload Supporting Documents

Now, upload the duly signed and stamped Commercial Invoice, Packing List and Declaration. The declaration must state that goods are manufactured in India and that no other certificate has been issued for same invoice. It must include exporter address as well as place of issue.

Step 11: Apply Digital Signature

Tick digital signature option and then attach your Class 3 DSC. Enter DSC PIN and then sign the application.

Step 13: Submit Application

Once signed, proceed to submit the application. Then, you will see confirmation: “File signed successfully”.

Step 14: Make Payment

Now, proceed to payment gateway. Payment options include Net Banking, UPI and Debit/Credit Card. The COO Fees is as follows:

• Non-preferential COO: Approx Rs. 236 + GST
• Preferential COO: Around Rs. 750 per invoice copy

Step 15: Download & Verify Draft

Now, download application form and check draft certificate. Share with client for confirmation. If required, you can edit the application form.

Step 16: Processing Time for Issuance

COO is usually issued within 24 to 48 hours after submission.

Important Tips for COO Registration

Here are a few important tips for COO registration:

• Always use DSC linked with IEC.
• Ensure invoice is duly signed and stamped.
• Cross check all details before application submission.
• Keep documents clear and properly uploaded.

Must Read: Certificate of Commencement of Business

Conclusion

The process of applying for a Certificate of Origin is pretty simple and streamlined. It is an entirely online process and does not require any physical visits. By following the steps we explained in this blog post, you can easily obtain your COO and engage in export business activities. 

Frequently Asked Questions (FAQs)

Q.1 Who issues certificate of origin?

In India, certificates of origin are issued by authorized bodies like Chambers of Commerce, Export Promotion Councils and various Trade Associations/Councils.

Q.2 Where to apply for Certificate of Origin?

In India, you can apply for a certificate of origin via Trade Connect Portal

Q.3 Which document certifies origin of exports?

The certificate of origin certifies the origin of exports.