What is a Certificate of Origin, when and where is it used?
A Certificate of Origin is a legal document declaring the originating country where goods or commodities are manufactured. The certificate of origin contains information regarding the product, its designation and the country of export, it is a certificate which is widely used for international trade transactions, which is issued by the originating country (i.e. home country). It will also reflect on the commercial invoice.
The certificate of origin is also known as the declaration of origin. The certificate of origin is normally prepared by the exporter or manufacturer and the same is approved and issued by the chamber of commerce. It is usually required by the country’s customs authority as a part of clearance process when importing. It is also used to assess the rates of duty or tax.
The chamber of commerce is the authority which issues the certificate of origin.
Guidelines for issuance of certificate of origin are globally issued by the International Chamber of Commerce.
It includes attesting of goods that are to be exported to another country.
The Chamber of Commerce is a governing authority that issues the certificate of origin and all the exporters dependant on the authority for the processing of the Certificate of Origin in the UAE.
For example: If the goods are manufactured in the UAE and the same needs to be exported to another country, then the chamber of commerce needs to issue the certificate of origin, based of which the particular good can be exported and traded to another country without any hassle.
Where and when it needs to be displayed – The Certificate of Origin needs to be displayed at the customs while exporting the goods. It also depends on the treaty with the exporting country and the importing country as the import duty will be applied as per the agreed traffic rate between the countries.
Below is the procedure for applying for a certificate of origin from the Chamber of Commerce which is now an online process:
- The required documents are to be prepared and uploaded online via Chamber of Commerce Online portal.
- A fee has to be paid and post assessment the Certificate of Origin will be issued accordingly.
Documents required for applying the Certificate of Origin
- Chamber of Commerce Certificate Registration
- Invoice Copy (Supplier invoice & Customer Invoice)
- Packing List with Product details
- Shipment details
- Company trade license copy
- Company tenancy contract copy
- Passport copy of the Shareholder or Manager
- Visa copy & Emirates Id copy of the Shareholder or Manager
The certificate of Origin along with the Commercial invoice has to be forwarded to the shipping / logistics provider to facilitate international trade in the UAE.
There are two types of certificate of origin
- Preferential certificate of origin – The goods are subject to potentially reduce the tariff taxed or exemptions when exported to certain countries, if the exporting country has a free trade agreement or professional trade agreement and the buyer would receive the benefits, in that case the preferential certificate of origin will be issued.
- Non preferential certificate of origin – the goods don’t qualify for any special treatment in the country they are from. If there is no agreement between the exporting and the importing country, then the non-preferential certificate of origin is issued.
Consequences of not having a certificate of origin
- Custom duty will have to be paid on a higher rate.
- Unable to take advantage of free trade agreement.
This blog is written by Ms. Prudencia, Business Advisor at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. If you have any question regarding getting a certificate of origin for your products in Dubai or anywhere across the UAE then please contact us at +971 4 4542366 or email us at info[at]flyingcolour[dot]com.
*Please Note: This article was published on 25th February, 2021. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent update or change.
