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Q 222: As an exporter, how can we get Certificate of Origin against export?
Kindly explain details of digital platform for issuance of Electronic Certificates of Origin launched by the government?
A: 1. Certificate of Origin is one of the useful documents in import-export trade.
2. This certificate indicates that the goods which are being exported are actually manufactured in a specific country mentioned therein.
3. This certificate is sent by the exporter to the importer and is useful for clearance of the goods from the Customs Authority of the importing country.
4. This is the document required by the importer for his import clearance.
5. Certificate of Origin is normally issued by the Local Chamber of Commerce and other authorised agencies.
6. For providing this service, chambers will charge small fees. The procedure is simple.
7. The government has launched Common Digital Platform for Issuance of Electronic Certificates of Origin (e-CoO).
8. This platform will be a single access point for all exporters, for all Free Trade Agreements (FTAs)/Preferential Trade Agreements and for all agencies concerned.
9. Certificate of Origin will be issued electronically which can be in paperless format if agreed to by the partner countries.
10. Authorities of partner countries will be able to verify the authenticity of certificates from the website.
11. The benefits of this platform will be:
|
Sr. No. |
Existing Process |
New Platform |
|
1. |
Current process requires the exporter to visit the agency thrice for each certificate |
The issuance process is electronic, paperless and transparent |
|
2. |
Real-time tracking is not possible as data is fragmented across various agencies |
Real-time tracking of FTA utilisation at product level, country level etc. |
|
3. |
Physical Certificates of Origin issued |
Electronic Certificate of Origin issued |
|
4. |
Electronic exchange of CoOs not possible |
Possible to electronically exchange CoO with partner countries |
|
5. |
Current processes take more time and cost |
Reduces transaction cost and time for exporters |
Procedures
1. Exporters may register on this platform.
2. Exporter can apply for CoO to any of the designated agencies.
3. Export Inspection Council (EIC) and its agencies (EIA) are already on-boarded.
4. The on-boarding process is only for the purposes of payment integration so that the application fees may flow to the respective agencies.
5. The platform will be made live for FTAs in a phased manner as per the concurrence of the concerned partner countries.
6. Various territorial divisions have already informed their partner countries.
7. Further, once the partner countries agree to an electronic data exchange, the CoOs will be electronically sent to the Customs of the partner countries.
8. After this, there will not be any need for physical CoO copy, saving transaction cost and time for exporters.
9. India has 15 FTAs/ PTAs with various partner countries under which exporters avail reduced import tariffs in the destination country.
10. In order to avail this benefit, exporters must provide a preferential CoO to the importer.
11. These documents certify that exported goods are made in India.
12. These certificates are issued by designated agencies in India after vetting of the rules of origin criteria as per the respective FTA/PTA.
13. Some designated agencies for CoO issuance are:
|
Sr. No. |
Name |
|
1. |
Export Inspection Council (EIC)/Export Inspection Agency (EIA) |
|
2. |
Directorate General of Foreign Trade (DGFT) |
|
3. |
Marine Products Export Development Authority (MPEDA) |
|
4. |
Textile Committee and Tobacco Board |
14. Earlier, Preferential Certificate of Origin was issued by the various notified agencies around the country through manual processes.
15. A new common digital platform for issuance of electronic preferential CoO has been conceptualised to address various challenges in the current process.
16. In continuation to the earlier Trade Notice, the mandatory filing of applications for Non Preferential Certificate of Origin through the e-CoO Platform has been further extended till 01st August 2022.
17. The existing systems of processing non-preferential CoO applications in manual/paper mode are being allowed till 01st August 2022.
GSP (GENERALISED SYSTEM OF PREFERENCE)
1. When imports from certain countries are favorably treated in the matter of levy of import duties, the Customs authorities of concerned country insist on some proof of the fact that the goods are genuine products of such countries. For this, a special type of certificate of origin (GSP) is sent to the importer by the exporter.
2. As the name shows, it is a certificate indicating the fact that the goods which are being exported have originated/manufactured in a particular country. It is a sort of declaration testifying the origin of exports. It is mainly useful for taking advantage of a preferential duty, if available. Finally, the certificate of origin ensures that the goods have not been re-shipped by the exporter after importing from some other country.
3. This certificate is also known as Form A.
4. Vide DGFT Public Notice No. 51 dated 30th December, 2016, a new system was introduced known as “Registered Exporter System” (REX). An exporter who wants to send GSP to Europe can now issue the same by himself. They need not approach any designated agencies. This scheme has been effective from 01.01.17. An exporter has to give declaration on commercial document like invoice.