A Certificate of Origin (CO) is often required by the importing country when engaging in foreign trade as an exporter. The Certificate of Origin shall certify and declare the countries involved in the production or manufacturing process of the products included in the export delivery. Importing countries rely on Certificates of Origin to determine the appropriate taxable duties and to evaluate the legitimacy of the commodities.
What is a Certificate of Origin?
The Certificate of Origin is a document used during international trade. Exports must complete the procedure and receive a certificate from the approved government authority. (In most countries, it is the Chamber of Commerce). It requires the attestation that the products in a specific export shipment are manufactured, produced or processed in a particular country. The origin of the commodity corresponds to the region from which it is produced and not the country from which it is delivered. The Chamber of Commerce is the regulatory body awarding the Certification of Origin and most exporters depend on the authority to process the Certificates of Origin in the UAE. These official documents will be presented out into two different forms in Dubai depending on your current trading practice:
- Non-preferential Certificates of Origin:
The most common practice, these certificates do not offer any distinct advantages to the trade.
- Preferential Certificate of Origin:
Certificates that provide reduced tariff rates and special other privileges dependant on the issuing country and related fees. Here, the local authority responsible for the distributions of these certificates is the Chamber of Commerce in Dubai. The organization oversees the authorized working practices for local and foreign trading companies within the encompassing lands of Dubai.
History of Certificate of Origin
Globalization has led to unprecedented growth in interconnectivity between countries, and many states depend on chambers of commerce to oversee and administer Certificates of Origin. The Geneva Convention of 1923 led to the advent of a delegation of certificates of origin to state chambers. It was at the Convention that chambers were formed to be competent, impartial and answerable third parties capable of delegating the potential needs of Certificates of Origin.
Required Documents for Certificate of Origin
Multiple documents are required for the application and approval for the certificate of origin. These documents are:
- Chamber of Commerce Certificate Registration
- Invoice Copy (Supplier invoice & Customer Invoice)
- Packing List with Product details
- Shipment details
- Company trade license copy
- Company tenancy contract copy
- Passport copy of the Shareholder or Manager
- Visa copy & Emirates Id copy of the Shareholder or Manager
The certificate of Origin along with the Commercial invoice has to be forwarded to the shipping and logistics provider to facilitate international trade in the UAE. These documents do not require local Chamber of Commerce notarization, but they do require the signature and notarization of a company representative
Importance of Certificate of Origin in Exports and Imports
Certificate of Origin is one of the necessary documents for customs clearance of imports in most of the importing countries. But the question is why does the Certificate of Origin require import clearance? Why is the government insisting on a Certificate of Origin as one of the necessary documents for import customs clearance? To answer these questions, import duties can be removed on the basis of designated products from specific countries, as required by the government policy of each country on a time-limited basis and by a bilateral and unilateral trade arrangement between countries. Or, as regards the availability and consumption of products, those goods are subject to import duties to regulate the purchase of certain goods. Duties are often imposed on goods imported by some nations on the grounds of political policies. The importance of certifying the origin of products therefore plays a crucial role in foreign trade between countries.
As per Dubai Customs, there are four important explanations of why it is vital to identify the origin of a commodity.
- Confirming a good’s origin will aid in deciphering whether the import shipment qualifies for preferential treatment.
- Gathering trade statistics will help in the creation and reformation of future trade policy.
- Understanding origin will ensure cohesion with relevant trademark laws.
- Knowledge of origin benefits government procurement.
How Can Riz and Mona Consultancy Help You?
Riz and Mona Consultancy will assist you in securing a Certificate of Origin from the Chamber of Commerce in the UAE for the goods required to launch trade without any difficulties. We will prepare the online form by gathering the necessary documentation and fees to process the Certificate of Origin application on the basis of your particular business license and the location of your office in the UAE. Connect to our team right away for the fastest and most cost-effective service in the UAE. You can reach out to us and our team of expert business consultants through our website. Book your appointment today.