WCF WEBINARS

INTRODUCTION TO CERTIFICATES OF ORIGIN

Certificates of Origin (COs) are international trade documents used to determine the origin of goods for official, commercial and financial reasons.
Virtually every country in the world considers the origin of imported goods when determining what duty will be assessed on the goods or, in some cases, whether the goods may be legally imported at all. COs attests that goods in a particular export shipment are wholly obtained, produced, manufactured, or processed in a particular country (country of origin).

Since 1898, chambers have been recognized by government and customs officials as competent authorities to issue COs. Chambers play a crucial role as trusted third parties bringing reliability, integrity, neutrality and impartiality in the issuance of COs.

WEBINAR DETAILS   This webinar introduces the following concepts:      -  What are COs and why they are needed?      -  How to determine and establish origin?      -  Essential procedures and checklists for issuing COs      -  Confidentiality rules and anti-fraud measures      -  Customer care procedures for quality service, consistency and confidentiality   PRESENTATION AND WEBINAR RECORDING Download Steve Baker's presentation here. You may also view a recording of this webinar at a cost of 20 EUR, register here.

ICC WCF International Certificates of Origin Guidelines
The ICC WCF International Certificate of Origin Guidelines provide a set of rules and recommendations in the application, certification, issuance, management and control of origin documents. Published in 2006, the publication is now available in Chinese, Arabic, Russian and Spanish.

This publication can be downloaded on the ICC Bookstore from this link:  ICC WCF International Certificate of Origin Guidelines.

Electronic Certificate of Origin
To remain efficient and relevant to modern business needs and requirements, chambers are very active in exploring and learning more about the electronic delivery of certificates of origin. Many chambers have developed internet services to assist their trading community in access to this service. In a few countries, chambers are already operating within electronic certificates of origin trading system. You will find out from this link a full list of services providers of total electronic certificate of origin system: Electronic Certificate of Origin.

Contact Details
You will find out from this link the CO contact details of the ICC WCF Secretariat:  Contact details.

All members’ chambers are in the position to issue a CO and/or provide you the name of the issuing body(ies) in your own country:  List of ICC WCF CO Task Force Members.

WCF WEBINAR ON COs - Q&A

Below, you will find a list of questions asked during the webinar, and the answers provided by Steve Baker and our WCF team. If you have further questions, do not hesitate to contact us.

Q: Where can we find the best practices in electronic certificates?
A: Good question! This is a developing world and each country is tackling Electronic Certificates in their own way. Countries will try to find something home-grown which they will use as their Electronic system and I have yet to come across two systems that are identical.

The WCF is collecting various ECO solutions and showcasing them on their website. There is no best practice in this field - it depends on your country to decide how far it wants to go with electronic developments and at what pace.

Canada

Q: What is an acceptable proof of origin?
A: We accept the export invoice, normally, as sufficient evidence of origin. The export invoice is provided by the applicant who is normally a chamber member although he may not be a chamber member and if he is not, then we ask for more information about his company, director’s names and credentials before we accept the export invoice. So normally, this is the document that is commonplace for us to determine the origin of the goods. Sometimes it will have a separate declaration of origin provided by the company and authenticated by one of their signatories. But in absence of the export invoice then we would look for another authentic document such as an overseas certificate of origin from the overseas chamber of commerce where the goods were made.

Q: For countries in which certification of COs is not regulated by the Government, how can a Chamber protect itself against liability?
A: In this situation, the chamber must probably take advice from its own legal advisors and maybe set in place some form of professional indemnity insurance; this kind of insurance can vary enormously but we have examples of that here because we ask every chamber in the UK to have a policy in place of indemnity. They have it for all their staff anyway but it’s particularly important for those in documentation work because any negligence on their part could have very serious consequences indeed; a lawsuit brought by an exporter whose goods have been held up and involve enormous sums of money for customs dues simply because a chamber member was negligent in their duty could really sink the chamber of commerce in one night.

Q: Which copies are kept on file, CO only or CO and background documents?
A: We keep a copy of the supporting evidence, the invoice or whatever that evidence is, and the back copy (which was the pink copy shown on the presentation) is held in the Chamber. The two are normally stapled and kept together and kept in the file. The original goes back to the exporter and he/she also gets another copy for their own records. These are the files that get audited when an inspector comes.

Q: Do they have issues with electronic certification?
A: In regards to electronic processing, we ask the chamber to simply print off in hard copy of the application form so the same thing is held even though it is electronic. The electronic database is a secure database held under confidential terms with our software provider.

Q: Is there an expert (at the ICC) to whom an email can be sent when we have questions regarding certification? Is there a chat room available for questions?
A: ICC World Chambers Federation Director Anthony Parkes (anthony.parkes@iccwbo.org) and his trade facilitation team are available to assist. WCF CO Task Force, comprising of chamber CO practitioners will also be called upon by WCF where needed to help fellow CO colleagues.

Q: Can we have access to the Procedures Manual?
A: ICC World Chambers Federation has published in 2006 some "International Certificate of Origin Guidelines" that can be downloaded on our website from the following link: http://www.iccwbo.org/wcf/co/id7334/index.html
These guidelines compile in a manual for chambers of commerce and the business community information on how to best be in compliance with the International rules of origin .

The Canadian Chamber of Commerce also has local guidelines that would be specific to your country; please contact, Michel Barsalou at the Canadian Chamber of Commerce.

Q: Is an official authorization (from the government, for example) necessary to issue non preferential COs? Or this authorization is needed only when the entity issues preferential COs (and there is a trade agreement between the countries)?
A: The majority of Governments and Government agencies rely on the expertise and network of Chambers of Commerce as they have an excellent and creditable track record with the first CO issued as early as 1898. Since the 1923 Geneva Convention which specifies that governments can delegate the issuance of COs to "competent authorities", Governments of developed and developing nations have delegated the issuance of CO to Chambers to which are deemed to be suitable organisations as they are Reliable and would not compromise on integrity, neutrality and impartiality in the issuance of CO. So, whether it is non-preferential certificates or preferential certificates the authority should come from the national government.

China
Q: Thank you for your excellent presentation. We are from China Chamber of International Commerce. We have a question here: Has BCC encountered any difficulties in issuing PCOs? Could you share some experience with us?
A: A session on Preferential Certificates of Origin and the experiences by chambers was held as part of the 6th World Chambers Congress. For specific experiences by chambers in PCO matters, WCF would be pleased to introduce you to any of our chamber colleagues in various countries for one-on-one exchange. For the experiences of British Chambers, please contact Steve Baker directly at BCC.

Q: In our practice, if we have doubts about the accuracy of information and documents made by applicants, we may go to visit premises to check the producing procedure and the related producing reports. How do you handle similar situation? And how much percent of such cases in all application?
A: Should a chamber have any doubt in the accuracy of a certificate of origin, it is not obliged nor obligated to issue the certificate. Should there be any cases of fraud, appropriate authorities should be notified. As this is a serious issue, your department should address this item with your CEO. Please see WCF International CO Guidelines.

France
Q: Do you know in which countries preferential origin certificates are also delivered by chambers of commerce?
A: According to the 2009 World CO Survey, the following countries have chambers of commerce that issue PCOs:

Argentina
Australia
Belarus
Belgium
Bulgaria
Cambodia
Canada
Chile
China
Costa Roca
Croatia
Cuba
Hong Kong
Hungary
Iran
Japan
Kenya
Korea
Kuwait
Kyrgyz Republic
Laos
Lebanon
Macedonia
Madagascar
Mexico
Mongolia
Netherlands
New Zealand
Norway
Palestine
Paraguay
Peru
Philippines
Republic Of Moldova
Salvador
Serbia
Slovak Republic
South Africa
Spain
Switzerland
Turkey
Ukraine
United Arab Emirates
United Kingdom
United States
Vietnam

Q: Do you know which countries already accept eCOs as a sufficient proof of origin?
A: Electronically COs does not prevent verification of all documentary evidence of origin.
 
Q: Do you know which countries already accept eCOs as a sufficient proof of origin for customs purpose?
A: According to the 2009 World CO Survey, eCOs are recognized by national authorities and foreign authorities of the following countries (and responding chambers):

Australia (Chamber of Commerce and Industry of Western Australia and Chamber of Commerce and Industry Queensland)
Chile (National Chamber of Commerce, Services and tourism of Chile)
Croatia (Croatian Chamber of Economy)
Germany (Chamber of Commerce and Industry Koblenz)
Ireland (Waterford Chamber)
Japan (The Kobe Chamber of Commerce and Industry)
Kenya (Kenya National Chamber of Commerce and Industry)
Korea (Korea Chamber of Commerce and Industry)
Netherlands (Chamber of commerce of the Netherlands)
New Zealand (Wellington Regional Chamber of Commerce)
Singapore (Singapore International Chamber of Commerce and Singapore Manufacturers" Federation)
South Africa (Durban Chamber of Commerce and Industry)
Spain (Superior Council of Chamber of Commerce, Industry and maritime and Madrid Chamber of commerce and industry)
Switzerland (Argovian Chamber of Commerce and Industry and Zürcher Handelskammer)
Ukraine (Odessa regional chamber of commerce and industry)
United Arab Emirates (Dubai Chamber Of Commerce and Industry)
United Kingdom (British Chamber of Commerce and Chamber International, preferred supplier of international trade services to Bradford, Leeds & North Yorkshire Chambers of Commerce)
United States (Zeeland Chamber of Commerce, Inc and Portland Business Alliance greater Portland Chamber of Commerce)

Greece
Q: Can you please explain us more what is the preferential origins?
A: Preferential COs enables products to enjoy tariff reduction or exemption when they are exported to countries extending these privileges: e.g. GSP, Commonwealth Preference Certificate.

Ireland
Q: When are joint Arab Certs appropriate? What if an applicant requests an EU Cert for export to an Arab country?
A: This applies to 22 Arab countries. The benefits of using an Arab certificate are that you are sure to fulfil all country requirements for importation of goods. Joint Arab certificates are appropriate for all exports to Arab League States but if an applicant requests an EU certificate for export to an Arab country, the applicant should sign an indemnity letter for the Chamber (can provide wording if required) before issuing the EU certificate.

Q: Our equivalent of BERR insists that only the direct costs of issuing a Cert can be charged to the user. No profit or risk margin, development costs, training etc.... Is this your experience?
A: The CO prices set by each chamber of commerce differs from country to country. Pricing issues are covered in the WCF International CO Guidelines (page 11). For example, in some public law chamber countries, prices can be considerably lower than private law chambers. In certain countries, Customs has set in law the price that may be charged for a CO. Price lists of chambers delivering this service would be useful for you to compare. A sample of the London Chamber’s services can be found http://www.londonchamber.co.uk/docimages/6820.pdf

Italy
Q: Thanks for the answer but I have not explained the problem correctly. Italian rules do not accept an origin declaration as proof of non-EC origin and only admit non-EC certificates of origin (issued by non-EC organizations) or custom clearance. I'd like to know if UK also accepts origin declaration of the supplier, since if the exporter hasn't imported goods directly from non-EC countries, he cannot usually obtain non-EC certificate of origin nor custom clearance (which is held by the importer). Thanks for your patience.
A: Concerning proof of non -EC origin, we in the UK would accept an origin declaration of the supplier, in the absence of an non EC certificate of origin, but that declaration should be verified by a notary public or similar.

Malaysia
Q: How do you issue a CO for export of software e.g.: A Malaysian Company downloads software from its principal company in Russia. The Malaysian Company needs a CO for export of the software to Vietnam. Document provided is only patent license and company wants to declare origin of software as Malaysia.
A: Chamber of commerce certifies the origin of the product based on the proof the exporter provides. Hence, the question really is what can be the proof of origin for software.
Mrs Lee Ju Song, the Director of ICC Asia and the Chair of ICC WCF CO Task Force has expertise in this field and can provide further details upon inquiry.

Q: How many countries are accepting electronic COs?
A: According to the 2009 World CO Survey, eCOs are recognized by national authorities in these countries: Australia, Belgium, Canada, Chile, Croatia, Denmark, Ethiopia, Germany, Honduras, Hong Kong, Ireland, Ivory Coast, Japan, Kenya, Korea, Mongolia, Netherlands, New Zealand, Norway, Portugal, Romania, Singapore, South Africa, Spain, Switzerland, Trinidad and Tobago, Ukraine, UAE, UK, and the USA

Mexico
Q: Regarding to commodity code how many digits should be written in the certificate as depending the country (they may come to 8 to 10)?
A: Under the HS Convention, the contracting parties are obliged to base their tariff schedules on the HS nomenclature, although parties set their own rates of duty. The codes with the broadest coverage are the first four digits, and are referred to as the heading. The HTS therefore sets forth all the international nomenclature through the 6-digit level and, where needed, contains added subdivisions assigned 2 more digits, for a total of 8 at the tariff-rate line (legal) level. Two final (non-legal) digits are assigned as statistical reporting numbers if warranted, for a total of 10 digits to be listed on entries. To ensure harmonization, the contracting parties must employ all 4- and 6-digit provisions and the international rules and notes without deviation, but are free to adopt additional subcategories and notes. More information can be found on the WCO website.

Sri Lanka
Q: Is pricing based on value of goods?
A: The CO prices set by each chamber of commerce differs from country to country. Pricing issues are covered in the WCF International CO Guidelines (page 11). For example, in Bulgaria, the Plovdiv Chamber of Commerce charges 6 EURO/EXCL. VAT./ + STAMPS ACCORDING TO VALUE OF THE GOODS. Some chambers charge different prices for members and non-members.

Sweden
Q: Why does the form of the certificate of origin differ between the member states of EU?
A: The form is the same in all member states of EU; however, the language requirements vary by country. For example, a chamber in Barcelona has to provide a form in five languages while in France the form is only in two languages.

Q: How many company visits does the BCC do annually to check the origin?
A: The relationship to the company is maintained by the local chamber of commerce in the UK. BCC understands inspections of the chambers and their CO issuing procedures and systems.

Q: How long is the normal issuing process for documents in UK? The same day, the next day or a longer time, that is how long time must the exporting company have to wait to get their documents back?
A: The service in the UK varies depending upon whether the chamber is using the ECO system or whether the documents are being delivered to the office. It depends on the method of delivery to the respective chambers.
For example, please see the London Chamber of Commerce website which provides details on the various methods and turnaround times: http://www.londonchamber.co.uk/lcc_public/article.asp?aid=3951

Switzerland
Q: Do you have experience with CO's from Peru: no indication on the origin is mentioned on the CO. That means a CO issued in Peru automatically certify the Peruvian origin.
A: Peru, as a beneficiary of the Swiss Scheme of Preferences, issues Certificates of Origin Form A for originating products. In Box 12 of Form A we indicate the country (Peru) where the product was produced and means that it complies with the origin. Further details on the CO system in Peru can be obtained by contacting directly the WCF secretariat.

Q: Are CO's always issued in the language of the issuing country or is English mandatory?
A: The application form shall be printed in the official language or in one or more of the official languages of the exporting country. The Certificate of Origin form shall be printed in one or more of the official languages, in addition to the English version but not in place of it, of the exporting country (or community) or, depending on the practice and requirements of trade, any other language. It really depends on the importer’s requirements and often these COs, although we look at them as export documents, are really import documents because they will be called for by the importer. So, if the importer requires the certificate in a particular language or multi-lingual, then they will ask for it and the exporter will normally have to go along with this request.
A sample of CO’s from around the world can be found in the WCF CO Guidelines.

Q: Can a CO be back-dated to meet LC terms?
A: Yes, it’s called retrospective Certificates of Origin and provided that the reasons you are asking for backdated certificates are valid and genuine (e.g. the shipment was delayed or for some reason the documents could not be requested at the same time). It comes down to the judgment of the chamber staff and the knowledge that they have about the applicant to make sure that they’re request is bonified and it’s not made out of any false or suspicious circumstances. Generally, there’s no real time limit but we are not looking at backdating years and years but maybe a month or two to even a year.

Trinidad and Tobago
Q: Kindly provide examples of "normal trade descriptions"
A: The Tariff Codes, certainly the most comprehensive list you will find anywhere are used as our basis for descriptions of all products (trade definitions) that we are likely to ever come across. It is freely available for most countries of the world. Click here to access your local customs authority.

Turkey
Not a question, I have a comment, we have some differences between our COs in Turkey and in UK. First, we don’t have a pink copy. We have triplicate of COs we used in Turkey and just the first copy is green, the other are white. Second, we don’t have boxes on the CO to establish origin.

Our local chambers in Turkey demand supporting documents such as the manufacturer capacity report to prove if manufacturer can produce that product, if they import some raw materials or something during producing. And if they convinced that product is they approve the certificate.

If we are members of WFC and ICC, we have to create new standards on COs. This could be easy because we use COs for the same countries. We have to make something together.

United Arab Emirates (UAE)
Q: Why haven't more chambers and customs electronically linked like in Singapore?
A: Electronic Certificates of Origin (ECOs) are not yet recognized by all customs authorities. Each country is tackling Electronic Certificates in their own way. It depends on your country to decide how far it wants to go with electronic developments and at what pace. Countries will try to find something home-grown which they will use as their Electronic system, however this is still a system under development. The WCF is looking at this very closely and have examples of different systems on their ECOs website.

Q: For that matter, why isn't there a global Chamber/Customs network?
A: ICC WCF partnership with the World Customs Organization (WCO) dates back to the 1950’s and was further strengthened by a Memorandum of Understanding (MOU) signed in June 1996 in Hong Kong. ICC works closely with Customs via WCF’s trade facilitation activities - ATA Carnet, Certificates of Origin (CO), as well as ICC policy and advocacy work in Intellectual Property, Counterfeiting and Piracy and tax and transport issues.
For further details on how we work with Customs, please go to http://www.iccwbo.org/wcf/index.html?id=34723 

Q: Are manufacturers allowed to issue their own certificate of origin?
A: No, this is not a normal procedure. The responsibility for the issue of Certificates of Origin is restricted to any organization that can be classed as a “reliable authority or agency duly authorized for that purpose by the country of issue”. This certification work is an onerous responsibility undertaken as the nominee of the Government.

Q: Scrap, waste and used products should not take the origin exported counted even if they are bundled together?
A: The working priciple is following: Where the importing country has not provided Rules of Origin to be observed for such products, they can be taken as originating from the Country of Export if they are processed in the Country of Export. However, Issuing Organisations must also comply with the Rules of Origin to be observed in the Country of Exportation. If these used products are extracted from an equipment, machinery apparatus or vehicles, these extracted used products may be regarded as having the same Country of Origin as the original equipment. Again, it is important to observe the Rules of Origin of the Country of Importation and Country of Exportation.

Q: Why have customs not taken on both jobs? Can they not take on what we do? Is it just a historical thing?
A: Due to their proximity to industry and existing range of practical business services, the issuances of COs by chambers is an efficient and cost effective delivery solution for both business and government agencies.

Q: On your last example about Nike (referring to the presentation), the origin should state where there are made not which country the original brand is from?
A: Yes, the origin should state the country where they are made.

United States
Q: Who and how could you become an issuing body in US?
A: According to our record, there is no single and unique body which authorizes chambers of commerce in the US to issue CO. In the case of the Woodstock Area Chamber of Commerce, they have been authorized to issue CO by the State of Vermont. In the State of New York, the Brooklyn Chamber of Commerce has been authorized to issue CO by the District Export Council. According to the ICC WCF International CO Guidelines, “ the responsibility for the issue of Certificates of Origin is restricted to any organization that can be classed as a reliable authority or agency duly authorized for that purpose by the country of issue… In accepting authorization to issue Certificates of Origin, issuing bodies have accepted the responsibility to government which the work involves. Each issuing body, and all members of staff involved in certification work, must bear in mind that the work is an onerous responsibility undertaken as the nominee of the Government.” Some samples of letter of authorization are available in the ICC WCF International CO Guidelines.

Q: How many countries require an officially issued Certificate of Origin?
A: In many countries (especially in the Middle-East and Asia), there is a requirement or an understanding that the stamp or seal of a Chamber on a document lends credibility, authenticity or third party veracity to what is stated in the document. These countries will consistently look for a Chamber stamp before either letting goods into a country or possessing exporter requests for entry procedures.

Certificates of Origin are in common use pretty much around the world, as we saw the great volume issued in the 2009 CO statistics. The CO itself should not be confused with a declaration of origin. We reserve the term “Certificate of Origin” as an official document produced by the government or by the chambers in that country and should never be confused or used as a general statement of origin.

Q: Do you know if there are certification classes/training for COs in the US?
A: WCF is working with partner organizations in the US to identify potential support and training. Unfortunately, no dedicated CO courses are available to our knowledge at this time. However the ICC WCF are currently working toward the designing of a future international CO training programme and the CO webinar was our first step in bringing support to our US colleagues.

Q: How long are copies of COs and any other Documents related to COs to be kept on file?
A: COs are kept for at least two years from the date of issue then are destroyed and not kept in copy form. Customs authorities demand that Preferential COs are kept for three years.

Q: Electronic - Digital process of COs. Are you saying everything can be done electronically? Customers/businesses no longer need to come to the chamber with c of o ? This would be after we have the signed docs on file?
A: There are 3 versions of the electronic system. Version 1 was the data being sent electronically to the chamber for inclusion on the form, with it being collected from the chamber. Version 2 of the electronic system allows the stamp to be put digitally; these stamps have been approved by the government as being valid and they’re applied digitally to a certificate together with the scanned signature from the chamber member of staff who’s doing the authentication. Those are then printed out onto the actual form, the certificate itself, and then returned to the exporter. Version 3, the final and most advanced version, does this same process but instead of the chamber printing out the CO, it is the customer who is enabled to print it out in his own premises containing the digital stamp and signature from the chamber (applied securely by the chamber). This saves a lot of time as it can be completed in a few minutes if everyone can work together at the same time- which is the real big advantage of the ECO.
You can find more information on electronic systems on the ICC WCF ECO page: http://www.iccwbo.org/wcf/co/id27158/index.html

 Q: So, what trade circumstances require a Certificate of Origin, as opposed to a simple declaration of origin?
A: It all depends on the importer’s needs. In some counties, the importers find it easy to import goods simply with a statement of origin because they may find that the terms of CO are not required at all; in these cases we do not just produce a CO for the sake of it. But it often comes down to regulations that demand that the proof of origin is given by an authority who is properly authorized to give a neutral statement on origin and have checked the credentials and the evidence provided so that that statement of origin stands up in any legal situation. This subject has to be treated very carefully because importers will try to save money and be more efficient and so if there’s a document they can do without, then they will try to do without it. This is an area where they run a risk of falling foul with their customs authorities unless they are clear with no ambiguity about the type of certificate needed for those goods to enter that market without any interruption or any hassle.

Q: In North America, I think it is more common for producers and exporters to self-issue Certificates of Origin (e.g. NAFTA). Is the unusual in the global context?
A: In the majority of countries around the world, chambers of commerce issues non-preferential certificates of origin. Otherwise, customs authorities issue non-preferential certificates of origin.
Concerning preferential certificates of origin (eg. NAFTA), mainly customs authorities are issuing COs, however, there is an increasing trend for chambers to undertake this role on behalf of Customs.
Information on NAFTA Certificates of Origin can be found at: http://www.cbp.gov/xp/cgov/trade/trade_programs/international_agreements/free_trade/nafta/cert_origin/certificate_of_origin_lp.xml   

Q: What process /regulations are there for the United States chambers?
According to our records, there is no single and unique body which authorizes chambers of commerce in the US to issue CO.
A: WCF International CO Guidelines will be beneficial for your chamber in establishing good housekeeping procedures in delivering this service to your members.
Some basic information on certificates of origin can be found on the US Department of Commerce website http://www.export.gov/logistics/eg_main_018121.asp