Certificate of Origin (CoO) – DGFT CoO

Certificate of Origin (CoO) is paramount in international trade as it is a definitive document establishing the origin of goods exported from India. Issued by the Directorate General of Foreign Trade (DGFT), this certificate verifies the country where the products were manufactured, produced, or obtained. The DGFT CoO plays a crucial role in facilitating cross-border trade by enabling exporters to prove the origin of their goods and determine eligibility for tariff preferences. This article delves into the significance of the DGFT Certificate of Origin and the Procedure to obtain it.

RBI allows International Trade Settlement in Indian Rupees

Role of Certificate of Origin in Tariff Policy and Trade Agreements

The Certificate of Origin (CoO) is an autonomous commercial policy instrument to promote and sustain mutual trade and foster economic cooperation between countries. It is closely linked to the fundamental concept of tariffs, a traditional commercial policy instrument. At its core, the Certificate of Origin identifies and verifies the origin of goods being traded. It provides information about the country where the goods are produced, manufactured, or obtained. This information is crucial in determining the applicable tariff rates or preferential treatment that may be granted under trade agreements.

Tariffs, in general, are taxes imposed on imported goods and have been a cornerstone of trade policy for centuries. Tariffs can be used to protect domestic industries, regulate imports, generate revenue, or promote strategic economic objectives.
The Certificate of Origin aligns with the tariff system by enabling customs authorities to apply the appropriate tariff rates based on the origin of the goods. It helps prevent misclassification or false claims about the origin of goods, ensuring that the correct tariff rates are applied during the import process.

Moreover, the CoO plays a significant role in trade agreements and preferential trade arrangements. These agreements often involve reducing or eliminating tariffs on goods traded between participating countries. The Certificate of Origin becomes essential in verifying that the goods meet the criteria specified in the agreement and are eligible for preferential treatment.

The Importance of Certificate of Origin in International Trade and Customs Clearance

A Certificate of Origin is a crucial document in international trade that certifies the country of origin for goods in an export shipment.

It proves that the products were manufactured or produced in a specific country.
The Certificate of Origin contains essential information about the products, including their nationality and details such as the country of origin and the intended destination.
The CoO plays a significant role in determining the eligibility of goods for import and whether customs duties should be imposed on them.
Customs officials require the Certificate of Origin for customs clearance procedures, ensuring compliance with import regulations and facilitating the smooth movement of goods across borders.
This document serves as a key determinant in assessing the origin and authenticity of products in international trade transactions.

Types of Certificate of Origin:

There are two types of Certificate of Origin (CoO) for export:

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

Preferential Certificate of Origin

The Preferential Certificate of Origin is issued for exports that qualify for tariff preferences under specific trade agreements. It is mandatory to export goods to countries involved in such trade agreements where India receives tariff preferences. This certificate is issued for goods that qualify for preferential tariff treatment regarding duty payment. It may involve a reduction of the standard tariff or a complete exemption of tariffs. Preferential certificates are granted when two or more nations establish a trade agreement that includes exemptions for goods imported or exported between them.

Non-Preferential Certificate of Origin (NP CoO)

On the other hand, the Non-Preferential Certificate of Origin certifies the origin of the exported goods but does not provide preferential tariff treatment. It is applicable for exports that do not qualify for tariff preferences. CoO NP indicates that the exported goods do not receive any preferential tariff treatment. It requires the levying of due duties on the goods during the import/export process. These distinct types of certificates cater to different export scenarios and ensure compliance with trade agreement requirements.

DGFT Online Platform for Preferential Certificate of Origin Issuance

The Directorate General of Foreign Trade (DGFT) has developed a new online platform for issuing a Preferential Certificate of Origin (CoO). This platform is single-point access for Certificates of Origin under all trade agreements, including Free Trade Agreements and Preferential Trade Agreements. It has been specifically designed to provide exporters with a secure, electronic, and paperless process for obtaining CoOs.

Certificate of Origin (CoO) Issued for Exports from India under Various Trade Agreements

The e-platform for Certificate of Origin (CoO) issuance facilitates exports from India under several trade agreements. The following trade agreements are currently applied and issued through the electronic platform:

ICPTA – India Chile Preferential Trade Agreement
SAFTA – South Asia Free Trade Agreement
SAPTA – SAARC Preferential Trade Agreement
IKCEP – India Korea Comprehensive Economic Partnership Agreement
IJCEPA – India-Japan Comprehensive Economic Partnership Agreement
AIFTA – ASEAN India Free Trade Agreement
ISFTA – India Sri Lanka Free Trade Agreement
APTA – Asia Pacific Trade Agreement
GSP – Generalized System of Preferences
GSTP – Global System of Trade Preferences
IMCECA – India Malaysia Comprehensive Economic Cooperation Agreement
ISCECA – India Singapore Comprehensive Economic Cooperation Agreement
India-Mercosur Preferential Trade Agreement
India-Thailand Early Harvest Scheme
India-UAE Comprehensive Economic Partnership Agreement (India-UAE CEPA)
ICPTA – India Chile Preferential Trade Agreement

These trade agreements cover a diverse range of countries and regions, enabling exporters from India to avail themselves of preferential trade benefits and tariff concessions when exporting goods. The electronic platform streamlines the CoO issuance process, ensuring efficiency, accuracy, and compliance with the respective trade agreements.

Documents Required for DGFT CoO

To obtain a Certificate of Origin, the following documents are typically required:

Shipping bills: These documents contain details about the shipment, including the description of goods, quantity, value, and other relevant information.
Bill of Lading/Airway bill: This document serves as proof of shipment and contains details such as the name of the carrier, the consignor, the consignee, and the destination.
Invoice Copy: An invoice copy provides a comprehensive breakdown of the exported goods, including their description, value, and other relevant commercial details.
Packing List: This document specifies the contents of each package within the shipment, including the type of packaging, dimensions, and weights.

Additionally, Digital Signature Certificate is required for online application submission.

Procedure to Apply for Certificate of Origin

Prior registration on the CoO portal is mandatory before proceeding with the application for issuance of certification. The following steps outline the registration process:

Visit the Common Platform Portal launched by DGFT
Click on "Online Exporter Registration" under the online services section.
Insert the Class 2 or Class 3 Digital Signature Certificate (DSC) before initiating the registration process. Ensure that the DSC contains the embedded Importer-Exporter Code (IEC) of the firm.
Enter the IEC code, email address, and mobile number as per the updated IEC details.
Use the IEC Profile Management service on the DGFT website to update the preferred email address for communication purposes.
Click on "Save & Next" to proceed with the registration.
Review the terms and conditions, select "I Agree," and submit the registration request.
A password will be sent to the registered email address upon successful registration.
Go to the login screen and enter the registered IEC (10-digit alphanumeric/numeric code) as the username.
Use the password received via email to log in to the portal.

Once the registration process is completed, you can access the CoO portal using the provided username and password, enabling you to proceed with the application for Certificate of Origin issuance. To apply for a Certificate of Origin (CoO) online, follow the procedure outlined below:

Login to the Common Platform: Access the Common Platform using valid credentials, such as the Importer-Exporter Code (IEC) number and the password received after registering on the portal.
Fill in Application Details: Complete the application form by providing all the information about the Certificate of Origin. Ensure that all required fields are filled accurately.
Attach Digitally Signed Documents: Attach the digitally signed documents required for the application. These documents may include shipping bills, invoices, packing lists, and other relevant supporting documents.
Attach Digital Signature Certificate (DSC): Include a valid Digital Signature Certificate for document uploading and application submission. The DSC helps authenticate the submitted documents and ensure their integrity.
Preview the Certificate: Review the application by clicking the preview certificate option. This allows you to view a draft of the application before final submission.
Make Payment and Submit: Proceed to make the necessary payment for the Certificate of Origin issuance. Once payment is completed, apply for processing.
Confirmation and Notification: After applying, a confirmation alert will be sent to the registered email address and mobile number provided during the application process.

How IndiaFilings helps you obtain a Certificate of Origin (CoO)

IndiaFilings can assist you in obtaining a Certificate of Origin (CoO) through the common digital platform. Here's how our team can help:

Document Preparation Assistance: Our team of experts can guide and assist in preparing the required documents for the CoO application. We ensure that all the necessary documents are properly organized and compliant with the specified format.
Online Application Support: Applying for a CoO through the common digital platform can be complex. Our team can assist you throughout the online application process, ensuring that all the required information is accurately filled in and submitted.
CoO Issuance: We specialize in obtaining Certificates of Origin through the common digital platform. Our dedicated team will navigate the platform on your behalf, ensuring a smooth and efficient process to get the CoO for your export shipments.

By leveraging our technical expertise and in-depth knowledge of the CoO application process, we strive to make the entire process hassle-free for our clients. Our goal is to provide comprehensive support from document preparation to CoO issuance, ensuring compliance and efficiency every step of the way.