Certification |
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A provision that details the type of origin documentation that needs to be provided to claim preferential tariffs under an FTA. Certificates of origin are official documents which confirm the origin of the good based on the requirements under a specific FTA. They also need to describe the good in sufficient detail to enable their identification by the customs authorities in the country of importation.
There are two main types of certification: certification by a competent authority and self-certification.
Certification by a competent authority (often a chamber of commerce or customs authority) requires an exporter to obtain a paper certificate from a designated authority in their country. A sample certificate is often included in the text of the agreement.
When requesting a certificate, the exporter needs to demonstrate that their goods meet the relevant rule of origin, provide supporting evidence and occasionally also samples of their goods. The processing time will depend on the local authority. Authorities can also charge a fee for issuing a certificate.
Self-certification usually takes form of an origin statement issued by the exporter on a commercial document (commercial invoice, bill of lading etc.). If self-certification is allowed under an FTA, the temple of the origin statement that needs to be copied is usually provided in the text of the agreement in the language of all parties.
In some countries exporters are required to register or obtain an approval prior to using self-certification and origin statements (e.g. approved exporter authorisation).
Under some FTAs the origin certificate can also be issued by the importer based on the information obtained from the exporter.
Under some agreements self-certification is also allowed by default for shipments under certain value.
Exporters wishing to take advantage of preferential rates need to familiarise themselves with certificate of origin requirements as lack of a valid certificate will most likely result in full rate of duties becoming applicable.
Example:
An FTA requires certification by a competent authority. The exporter is required to contact the local competent authority and apply for an origin certificate following the appropriate domestic procedure. The local authority will be able to provide additional information about the documentary evidence that the exporter needs to submit, the time required to process the application and any applicable fees.
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