Certificate of Origin (CO)
A Certificate of Origin (CO) declares the country in which goods were produced or manufactured. A preferential CO (issued under a free-trade agreement) lets qualifying goods enter at a reduced or zero duty rate; a non-preferential CO simply states origin for statistics, quotas or anti-dumping measures.
Because the CO can decide whether goods get the low FTA rate or the standard tariff, it directly affects landed cost. COs are typically issued or certified by a chamber of commerce or an authorised body, based on rules of origin.
The Certificate of Origin can change the duty rate — and therefore the landed cost — of a shipment. Meeting the rules of origin to earn a preferential CO is often the difference between a competitive price and an uncompetitive one.
What is a preferential vs non-preferential Certificate of Origin?
A preferential CO qualifies goods for reduced or zero duty under a free-trade agreement; a non-preferential CO simply certifies origin for statistics, quotas or trade measures, with no duty benefit.
Who issues a Certificate of Origin?
Usually a chamber of commerce or another authorised body, which certifies the declared origin against the applicable rules of origin.