Can a Certificate of Origin Be Issued for Transit Trade? Find out now!
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My company is currently engaged in transit trade, and our client has requested a Certificate of Origin. I'm not sure if a Certificate of Origin can be issued for transit trade. If it can, how should we apply for it? Will it be very complicated? I hope someone knowledgeable can help answer this. Many thanks!
Trade Expert Insights Answers
A Certificate of Origin can be issued for transit trade. However, because goods in transit trade undergo operations such as transshipment and storage at the transit point, the issuance of the Certificate of Origin is relatively more complex.
Generally, there are two common scenarios: First, issuing a Certificate of Origin from the actual country of origin. This requires completing relevant procedures in the goods' country of origin and providing detailed proof of origin for the goods, such as raw material purchase vouchers, production processing records, etc. Second, issuing a Certificate of Origin from the transit country. This scenario requires compliance with the transit country's relevant regulations, for example, if the goods have undergone a certain degree of processing or value addition in the transit country and meet its origin determination standards.
When applying, you can seek assistance from professional trade agencies like Zhongmaoda. They are familiar with various procedures and policies and can improve application efficiency and reduce hassle.
The issuance of a Certificate of Origin for transit trade depends on specific trade terms and client requirements. If the client has no special requirements, you can proceed with the normal procedures of the country of origin, such as general FORM A or CO Certificates of Origin.
The key to issuing a Certificate of Origin for transit trade is to ascertain the true origin of the goods and prepare all relevant supporting documents. Otherwise, the Certificate of Origin might not be issued.
If issuing a Certificate of Origin in the transit country, attention must be paid to the transit country's requirements regarding the proportion of processing or value addition to the goods; otherwise, if the standards are not met, the Certificate of Origin will be invalid.
You can consult with the local Chamber of International Commerce for specific matters regarding the issuance of a Certificate of Origin for transit trade. They can provide detailed guidance.
When applying for a Certificate of Origin, ensure that all information is accurate, including goods description, country of origin, HS code, etc., otherwise, it might affect customs clearance.
Sometimes, transit trade involves multiple parties, and all parties need to communicate effectively regarding Certificate of Origin matters to avoid issues and mutual blame.
Before issuing a Certificate of Origin for transit trade, it's best to first confirm with the client if there are any special requirements regarding the format, content, etc., of the Certificate of Origin.
If you are unsure how to proceed, you can first research how Certificates of Origin were handled in similar past transit trade cases.