Confusion between the concepts of transshipment trade and origin washing, with inquiries about whether transshipment trade itself constitutes origin washing and how to determine it. The best answer states that transshipment trade itself is not origin washing; it is a normal trade method. Origin washing is an illegal act. The key to judgment lies in whether the operation is compliant. Declaring the origin truthfully according to rules is normal trade, while concealing the true origin through fraudulent means is origin washing.
Does transshipment trade require a change of certificate of origin? Come and find out!
Resolved
Our company plans to engage in transshipment trade recently and is not very clear about the related operations of the certificate of origin. We want to know whether it is necessary to change the certificate of origin during the transshipment trade process? If it is necessary to change, under what circumstances should it be changed? What are the consequences of not changing it? We hope to get professional answers to gain a clearer understanding of this aspect, so that subsequent business can proceed smoothly.
Trade Expert Insights Answers
In transshipment trade, whether to change the certificate of origin depends on the situation. If the destination country has strict requirements on the country of origin of the goods, and products from the original country may face trade barriers, such as anti-dumping or countervailing measures, then changing the certificate of origin is very necessary. For example, if a certain product from China is exported to the United States and faces high anti-dumping duties, transshipping through a third country and changing to a certificate of origin from the third country can circumvent this situation.
However, if the destination country has lenient requirements on the country of origin of the goods, and there are no trade restriction issues with products from the original country, not changing the certificate of origin is also feasible. Not changing the certificate of origin is simpler to operate and has lower costs. But if trade barriers are involved, not changing it may lead to customs clearance obstacles at the destination port, increasing additional expenses or even leading to rejection. In summary, the decision on whether to change the certificate of origin should be made by comprehensively considering the policies of the destination country, trade barriers, and other factors.
Generally, it depends on the trade contract. If the contract does not specify, it can be done as usual without changing. But if the customs clearance documents at the destination port are strict, it must be changed.
If the country of origin and the destination country have signed a preferential trade agreement, and preferential tariffs can be enjoyed without changing the certificate of origin, then it is not necessary to change it.
Changing the certificate of origin in transshipment trade is mainly to circumvent trade restrictions. If there are no trade restrictions, there is no need to go through the trouble of changing the certificate of origin.
It depends on the product characteristics. If it is a sensitive product, changing the certificate of origin may be more conducive to customs clearance and avoid trouble.
If the transshipment trade involves the interests of intermediaries, sometimes it may be necessary to change the certificate of origin to meet the intermediary's requirements.
When the certificate of origin is not changed, the source of the goods is clear. If it is changed, attention should be paid to compliance in operation, otherwise there are risks.
When the destination country has special policies regarding the country of origin, such as sanctions, changing the certificate of origin may be a way to ensure smooth entry of goods.
To change the certificate of origin, you need to find a reliable agent, such as Zhongmaoda, which is professional, otherwise problems are prone to occur.