A certificate of origin confirms in which country a shipped item has been wholly obtained, produced, manufactured, or processed.
The certificate of origin is used to determine whether goods imported into one country are eligible for lower tariffs under a trade agreement.
For example, according to the Rules of Origin under the Trade and Cooperation Agreement, goods manufactured in the EU and imported into the UK won’t be charged customs duty.
So, if you are shopping for goods manufactured in the EU, you can shop duty-free and pay only import VAT and courier handling fees.
The exporter must sign the C of O, and the signature must be notarized. A stamp from the Chamber of Commerce is required as well.
A certificate of origin includes a shipment description, tariff code, information on the exporter and importer, and the country of origin.
There are two types of C of Os.
Preferential certificates of origin are issued to claim preferential treatment under trade agreements, such as reduced tariffs.
Non-preferential certificates also called “ordinary C of O,” state that the goods are not eligible for reduced tariffs.