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Cerificate of Origin | The Certificate of Origin is an instrument to
establish evidence on the origin of goods imported into any country.
The certificates are issued under the ambit of the Rules of Origin
of any importing country that grants such concessions to tariffs or
merely stipulates a non preferential certificate without granting
any tariff concession. The Agreement on Rules of Origin within the framework of the World Trade Organisation ( WTO) is the foundation on which the Rules of Origin are framed by the respective countries. The basic principles enunciated in the WTO agreement on Rules of Origin are transparency, objectivity , impartiality, predictability, consistency and neutrality. The avowed objectives of these rules are to bring about further liberalization and expansion of world trade. It also desires to bring about the transparency of laws, regulations and practices regarding the Rules of Origin. It is on this basis that various countries have formulated their Rules of Origin which grant greater access to goods from the developing and the least developed countries under the preferential mode . There are two categories of Certificate of Origin viz. (1) Preferential and (2) Non preferential. |
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Amongst the Preferential Certificate of Origin are the : |
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1. Generalised System of Preferences ( GSP) is a non contractual instrument by which industrialised (developed) countries unilaterally and on the basis of non reciprocity extend tariff concessions to developing countries. The following countries extend tariff preferences under their GSP Scheme. |
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GSP schemes of these countries details the sectors/ products and tariff lines under which these benefits are available, besides the conditions and the procedures governing the benefits. These schemes are renewed and modified from time to time. Normally the Customs of GSP offering countries require information in Form 'A' (prescribed for GSP Rules Of Origin) duly filled by the exporters of the beneficiary countries and certified by authorised agencies. The List of agencies authorised to issue GSP Certificate of Origin is given in Appendix-35 of the Exim Policy and is as under: |
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2. Global System of Trade Preference (GSTP): In the GSTP trade concessions are exchanged among developing countries, who have signed the agreement. Presently, there are 46 member countries of GSTP and India has exchanged tariff concessions with 12 countries on a limited number of products. Export Inspection Council (EIC) is the sole agency authorised to issue Certificate of Origin under GSTP. |
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3. The Agreement establishing SAPTA was signed by the seven SAARC countries namely India, Pakistan, Nepal, Bhutan, Bangladesh, Sri Lanka and Maldives. The list of agencies, which are authorised to issue Certificate of Origin under SAPTA are notified under Appendix - 35A of the Handbook of Procedures (Vol 1) . |
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4. The Bangkok agreement is a preferential trading arrangement designed to liberalise and expand trade in goods progressively in the Economic and Social Commission for Asia and Pacific (ESCAP) region through such measures as the relaxation of tariff and non tariff barriers and use of other negotiating techniques. The agencies authorised to issue Certificate of Origin under Bangkok agreement are listed in Appendix - 35A of the Handbook of Procedures (Vol 1) . |
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5. A Free Trade Agreement (FTA) between India and Sri Lanka was signed on 20th December, 1998. The agreement was operationalised in March, 2000 following notification of the required Customs tariff concessions by the Government of Sri Lanka and India in February, and March, 2000 respectively. Export Inspection Council is the sole agency to issue the Certificate of Origin under ISLFTA. |
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The non preferential certificate of origin merely evidences the origin of goods from a Particular country and does not bestow any tariff benefits for exports to the importing nations Nation. All the exporters who are required to submit Certificate of Origin (Non Preferential) would have to apply to any of the agencies enlisted in Appendix-35B with the following documents: |
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(a.)Details of quantum/origin of the inputs/ consumables used in the export product. (b.)Two copies of invoices. (c.)Packing list in duplicate for the concerned invoice. (d.)Fee not exceeding Rs.100 per certificate as may be prescribed by the concerned agency. |
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The agency would ensure that the goods are of Indian origin as per the general principles governing the rules of origin before granting the Certificate of Origin(non preferential). The Certificate would be issued as per the Format of Certificate of Origin (Non Preferential) given in Annexure-II to Appendix-35B. It should be ensured that no correction/re-type is made on the certificate. |
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In the event of any agency desirous of being enlisted in Appendix-35-B, they shall submit the following documents to the office of the Director General of Foreign Trade: a) Details on the history, activities, membership, awards etc. of the agency. b) Notarised Declaration cum Undertaking as per Annexure I to Appendix 35 B on a stamp paper (Minimum Rupees two) A copy of the same may also be endorsed to the RMTR Division of the Department of Commerce . |
