By Vincent Wen    Photo：CANVA

In the context of rapid global supply chain shifts, the Certificate of Origin has become an indispensable core document in international trade. It not only determines tariff treatment and ensures compliance with import and export regulations, but also plays an essential role in preventing “origin laundering.” It is crucial to emphasize that changing the port of export or transshipping through another country (such as exporting via Hong Kong) does not change the origin of the goods. The determination of origin is based on the place of production and whether the processing meets the threshold of “substantial transformation,” rather than the location of the export port.
 

Below is an overview of the main functions and importance of the Certificate of Origin in international trade:
 

1. Ensuring Accurate Origin Determination
 

The purpose of a Certificate of Origin is to verify the actual place of production or substantial processing.

Many companies mistakenly believe that changing the export location (e.g., Hong Kong, Dubai, Singapore) can alter the origin—but this is incorrect.

International practice clearly stipulates that origin depends on the actual place of production, not the logistics route taken.
 

2. Compliance with International and Customs Regulations
 

Most countries require imported goods to be accompanied by a valid Certificate of Origin to ensure legal and transparent sourcing.

If customs inspection reveals inconsistencies in declared origin, consequences may include:

additional duties, fines, cargo return, or being flagged as a high-risk importer.
 

3. Ensuring Proper Tariff Treatment
 

Under Free Trade Agreements (FTAs) or regional arrangements such as RCEP, tariff preferences are granted only when supported by a valid Certificate of Origin.

Incorrect or fraudulent origin declarations may result in losing tariff benefits and could also constitute a legal violation.
 

4. Preventing Origin Laundering and Trade Risks
 

Origin laundering distorts markets and exposes companies to severe regulatory risks.

Customs authorities determine origin based on raw material sources, processing operations, and the production process—not the point of export.
 

5. Maintaining Fair Market Competition
 

Some countries impose anti-dumping duties or safeguard tariffs on products from specific origins.

Certificates of Origin help prevent illegal tariff circumvention and ensure fair competition among businesses.
 

6. Enhancing Trade Transparency and Partner Trust
 

Accurate Certificates of Origin strengthen corporate credibility and reduce disputes, claims, or damage to business relationships arising from origin controversies.
 

7. Facilitating Traceability and Regulatory Oversight
 

For highly sensitive products such as food, pharmaceuticals, and specialized materials, Certificates of Origin play a critical role in traceability and safety management.
 

Conclusion
 

A Certificate of Origin is far more than a procedural document—it is the foundation of transparency, fairness, and safety in global trade operations. Regardless of changes in export ports or transshipment methods, true origin is determined solely by actual production and processing, not by the logistics route. For businesses engaged in international logistics and import/export activities, understanding origin rules and properly managing Certificates of Origin is essential for mitigating trade risks and building long-term credibility.

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