A Certificate of Origin is a document used in international trade transactions related to the origin status of the goods. This document provides official documentation of which country the goods were produced or processed in during trade transactions between countries.

The Certificate of Origin plays an important role regarding customs duties, tariffs, and other legal obligations of the goods and legally supports the smooth operation of commercial transactions. You can reach the answers to all the questions you have about the Certificate of Origin by reading the rest of the article.

What is a Certificate of Origin? What Are Its Features?

The question of what a Certificate of Origin is is frequently asked by importers and exporters. This document, also known as the Certificate of Origin, is a document showing the origin of the exported goods.

Exporters can easily obtain approval for the relevant trade document by applying to the Chambers of Commerce. There are two types of documents issued by the chambers. Preferential and non-preferential origin are the types of the relevant document. 

The Certificate of Origin actually determines whether the transported goods are legal. Whether the goods subject to export/import are subject to tax is also determined thanks to the relevant document.

Almost all countries act by considering the origin of the relevant products to understand whether the goods they will import are legal. The relevant document only helps to prove the origin of the products to meet customs or commercial needs.

Importance of the Certificate of Origin: Why Is It Used and What Is It For?

The Certificate of Origin is a highly important document. In international trade practices, the relevant document must be presented by the exporter company. The country in which the relevant product was produced is proven by this document.

In addition, the destination and the country of export of the relevant goods are also determined by this document. When cross-border trade is concerned, the importance of the Certificate of Origin can also be mentioned for various agreements. Whether the relevant goods are suitable for application and to what extent they will be taxed is determined by the Certificate of Origin. 

Processes such as concessions, quotas, customs duties, and anti-dumping regarding the products subject to import can be easily controlled through the origin of the products. The customs administration verifies the tax rates in line with the trade to be made with the country by examining the Certificate of Origin specific to the shipment.

In addition, although it is misunderstood about the document in question; origin represents the country, not the point from which the goods are shipped. The production of a good in two or more countries causes the country on which more than half of the production cost of the relevant goods depends to be accepted as its origin. 

When all the information is gathered together, the points where the origin of a product is important can be listed as follows;

• Calculation of customs duties to be collected from the import transaction,

• Keeping foreign trade statistical records accurately and completely,

• Implementing trade policy measures

Many foreign trade activities take place based on the country of origin of the goods in question. Likewise, this document ensures the smooth running of foreign trade law between countries.

How is a Certificate of Origin Created? What Information Should It Contain?

Some regulations must be considered when creating a Certificate of Origin. We have compiled the information that must be included in the relevant document for you;

• The name and surname of the person sending the relevant product. The information in this field also applies to institutions, organizations, and countries.

• The name and surname info of the institution, individual, or organization that the product mentioned in the document will reach within the borders of Turkey,

• Information such as the type, net, and gross weight of the product,

• The signature and seal of whoever the competent authority issuing the Certificate of Origin is, stating that they approved the document,

• Detailed and orderly information on the numbers, marks, and quantities of the packages,

• The value of the product and information on the methods by which the same product will be sent,

• If the goods in question have undergone a change in that country, a detailed description of the change they underwent.

All of the information mentioned above must be communicated accurately and completely. If all the information regarding the product in question is not provided, many problems may arise. In some cases, proof may be requested from the sender country.

Types of Certificate of Origin: In Which Cases is Which Type of Certificate Used?

There are two types of Certificates of Origin. Preferential and Non-Preferential Origin forms can be detailed as follows:

• Non-Preferential Origin: This document is used when no tariff treatment is applied to the goods subject to export or import and when tax must be collected from the transported product. The Non-Preferential Certificate of Origin is used only to state that the transported products are originating.

• Preferential Origin: In this type of document, a preferential tariff is applied to the products in the payment of taxes. The taxes mentioned can be the reduction of normal tariffs as well as complete exemption from tariffs. In this type of origin, certain exemptions apply when goods between two or more countries are exported or imported.

To find the correct answer to your questions such as how to obtain a Certificate of Origin, you must first decide which type of document you need to issue. How to obtain the document is also a separate topic of information.

To have this document, which is given by industrial chambers upon application, you must also apply to the relevant industrial chamber. You can get help from the Navlungo team to obtain clear information on whether you need this document before sending your products abroad.

Procedures Related to the Certificate of Origin: Which Documents Are Required?

After answering questions such as who issues the Certificate of Origin and where it is requested from, it is useful to mention which documents are requested. A Turkish commercial invoice is requested for the Certificate of Origin.

This invoice must be approved by the Ministry of Finance and certified by a Notary. For products not originating in Turkey, a document showing the origin is also required. This is a photocopy of the Customs Entry Declaration. Alternatively, a Origin-Inducing document can also be used. 

Certificate of Origin and International Trade: In Which Cases Is It Necessary to Issue a Certificate?

You may be wondering about the answers to questions such as who issues the Certificate of Origin and in which cases it is necessary to issue it. First of all, it is useful to remind you that not every country requests the document in question. However, if the relevant country has a requirement for a Proof of Origin Document, the document in question must be prepared by the importer and their representation. 

Certificate of Origin and Export Process: What Is the Process of Issuing a Certificate and What Points Should Be Considered?

A Certificate of Origin is an important document required during the export process of a product. In the export process, the issuance and correct preparation of the certificate of origin ensure that the exporter is properly informed about the customs duties, tariffs, and other legal obligations of their product, and that the export process is carried out smoothly and legally. The points that exporters should consider when issuing a certificate of origin can be listed as follows:

• Providing accurate information about the product

• Preparing the certificate of origin in accordance with the legal processes of the country of origin

• Having other documents required in the export process ready (invoice, delivery note, transport contract, etc.).

The Certificate of Origin ensures that legal obligations are met during the export process and that the exporter is properly informed about the product's customs duties, tariffs, and other legal obligations. Therefore, the process of issuing a certificate of origin and the points to be considered play an important role for exporters and ensure that the export process is carried out in a proper and legal manner.

Each country's government policies differ from one another. Depending on unilateral and bilateral agreements between countries, specified goods from certain countries may from time to time be exempted from import tax. Therefore, the Certificate of Origin plays a vital role in international trade processes between countries. You can also benefit from Navlungo's professional support to manage your processes correctly.