By Nick Lung    Photo：CANVA

Since the shift of international supply chains, preventing "origin laundering" has become an important issue for many countries. The so-called "washing of origin" refers to importing foreign raw materials or processing products without achieving "substantial transformation" to obtain a certificate of origin. The certificate of origin is a document that certifies the origin or manufacturing place of the goods, so the origin marking is crucial to the determination of the origin. In today's world of frequent international trade, regardless of import and export regulations, anti-dumping balancing duties, tariff preferences, differential treatment, etc., or based on reputation considerations, it is crucial for customs to check and determine the origin of goods in accordance with relevant regulations.

In international trade, the Certificate of Origin (CO) plays an important role, mainly to ensure the legality and transparency of transactions and to help reduce tariffs and comply with trade agreements. The following are the main functions of the certificate of origin in international trade:

1. Enjoy tariff preferences

Many international trade agreements, such as free trade agreements (FTAs), provide tariff reductions or preferences for products from the signatory countries. Certificates of origin are used to prove that goods come from these agreement countries, allowing importers to apply for tariff preferences. For example, agreements such as the Regional Comprehensive Economic Partnership (RCEP) require goods to be accompanied by a certificate of origin in order to enjoy preferential tariff treatment.

2. Comply with the laws and regulations of the importing country

Some countries have specific regulations on imported products, requiring imported goods to provide a certificate of origin to ensure that these products come from a specific country or region. This helps the country's government understand the origin of imported products and comply with import controls or other relevant regulations.

3. Trade risk prevention and transparency

The certificate of origin can be used as a basis to prove the transparency of transactions and prevent false reporting or counterfeiting of origin. It can help importing countries and importers ensure the authenticity of the source of goods, thereby reducing trade risks.

4. Ensure fair competition in the market

Some countries impose anti-dumping duties or impose quota controls on products from specific countries. Certificates of origin help importers and governments distinguish which products require additional taxes, thereby maintaining fair competition in the market.

5. Promote trust in trade

As an official document, the certificate of origin enhances trust between importers and exporters because it is issued by an authoritative agency and guarantees the authenticity and legality of the source of the goods. This is crucial to establishing long-term trading relationships.

6. Cargo traceability and monitoring

Certificates of origin in international trade help governments of various countries trace the production location of goods, especially when it comes to special products, such as food, medicine, etc. It can ensure that the products comply with the health and safety standards of the source and destination countries.

Summarize:

The certificate of origin is not only a legal requirement in international trade, but also an important tool to promote international economic cooperation and trade standardization. It helps ensure that goods are legally imported and exported, enjoy tariff preferences, and protect market fairness, thereby promoting the sustainable development of global trade.

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