Why does a Certificate of Origin (C/O) matter in International Trade?

By Sherine Chen Photo: CANVA
When shipping goods across borders, one of the key documents often required is the Certificate of Origin (C/O). This document certifies that the exported goods are wholly obtained, produced, manufactured, or processed in a particular country. Essentially, it serves as proof of where the product comes from, which can affect how it is treated at the importing country’s customs.
A C/O is important because:
- It helps determine whether the product is eligible for preferential tariffs under a Free Trade Agreement (FTA).
- It provides transparency and prevents fraudulent trade practices.
- It ensures compliance with the import regulations of the destination country.
Which Countries Require a Certificate of Origin?
Many countries around the world require a C/O for imported goods, especially when preferential tariff treatment is being claimed. For instance:
- The European Union, the United States, and China often request a C/O to verify product origin.
- In Southeast Asia, member countries under ASEAN rely on specific forms to confirm whether goods qualify for reduced tariffs under regional FTAs.
Different Forms for Different Destinations
One important thing exporters should know is that not all Certificates of Origin are the same. Depending on the trade agreement between the exporting and importing country, a different form may be required.
For example, in Southeast Asia:
- Exporting from Indonesia to another ASEAN country may require Form D under the ASEAN Trade in Goods Agreement (ATIGA).
- Exporting from Indonesia to China may require Form E under the ASEAN-China FTA.
- Exporting from to Europe may require Form A.
This means exporters cannot simply use one type of C/O for all shipments because each destination and agreement has its own requirement.
The Certificate of Origin is a crucial document in international trade that affects tariff benefits and customs clearance. Since requirements vary depending on the trade agreement and destination country, exporters should carefully check which form is needed. Partnering with a knowledgeable logistics provider can help ensure a smooth process and successful shipment.
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