CERTIFICATE OF ORIGIN INDIA

Certificate of Origin (CoO) is an instrument to establish evidence on origin of goods imported into any country.

These certificates are essential for exporters to prove where their goods come from and therefore stake their claim to whatever benefits goods of Indian origin may be eligible for in the country of exports.

CATEGORIES OF CERTIFICATE OF ORIGIN

There are two categories of CERTIFICATE OF ORIGIN.

(i) Preferential and

(ii) Non preferential

RULES OF ORIGIN-PREFERENTIAL

(a) The rules of origin are the rules that determine the origin of a good for the purpose of exports to a trading partner. Under an FTA, PTA or a unilateral tariff concession, the tariff concessions are granted by an importing country only when these prescribed rules of origin are adhered to. Rules of origin also facilitate in computation of trade statistics and for determination and imposition of trade remedial measures.

(b) Some of the key criteria used in the determination of the rules of origin are:

(i) Wholly obtained

(ii) Change in tariff classification

(iii) Value addition

(iv) Non minimal operations

(c) For exports under India’s FTAs, PTAs and GSP, specified agencies are authorised to issue the certificates of origin, They shall also provide services relating to issue of CoO, including details regarding rules of

origin, list of items covered by an agreement, extent of tariff preference,verificationandcertificationofeligibility.Thelistofthese agencies authorised under the various FTAs/ PTAs is given in Appendix 2B

(d) Export Inspection Council (EIC) is the agency authorised to print blank certificates. The website of the EIC (www.eicindia.gov.in) provides procedural details (including fee) for issuance of the certificate of origin.

RULES OF ORIGIN-NON PREFERENTIAL

(a) Rule of Origin (Non-Preferential) criteria are as under:

(I) Goods are to be manufactured by the exporting entity as per the definition of “Manufacture” in Paragraph 9.31 of FTP; and(II) If imported inputs (Duty Paid or Duty Free) have been used for the production of export product, the export product can be considered to be originating in India (Non Preferential) on if the imported inputs undergo the processing/ operations that exceed the following:

(i) simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the aking-up of sets of articles), washing, painting, cutting;

(ii) changes of packing and breaking up and assembly of consignments;

(iii) simple cutting, slicing and repacking or placing in bottles, flasks, bags, boxes, fixing on cards or boards, and all other simple packing operations;

(iv) operations to ensure the preservation of products in good condition during transport and storage (such as drying, freezing, keeping in brine, ventilation, spreading out, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations);

(v) affixing of marks, labels or other like distinguishing signs on products or their packaging;

(vi) simple mixing of products ;

(vii) simple assembly of parts of products to constitute a complete product;

(viii) disassembly;

(ix) slaughter which means the mere killing of animals; and

(x) mere dilution with water or another substance that does not materially alter the characteristics of the products.

(b) Government has also nominated certain agencies to issue Non- Preferential Certificate of Origin(CoO).These CoO evidence origin of goods and do not bestow any right to preferential tariffs. List of notified agencies is provided in Appendix–2 E. In addition, agencies authorised to issue Preferential CoO areal so authorised issue Non- Preferential CoO.

(c) All exporters who are required to submit CoO (Non Preferential) would have to apply to any of agencies enlisted in Appendix–2 E with following documents:

(i) Details of quantum / origin of inputs / consumables used in export product.

(ii) Two copies of invoices.

(iii) Packing list in duplicate for concerned invoice.(iv) Fee not exceeding Rs.100 per certificate as may be prescribed by concerned agency.

(d) The agency would ensure that goods are of Indian origin as per criteria defined in (a) above before granting CoO (non preferential). Certificate would be issued as per format given in Annexure-II to Appendix 2 E. It should be ensured that no correction/re-type is made on certificate. Any agency desirous of enlistment in Appendix– 2 E may submit their application as per Annexure-I to Appendix 2 E to DGFT.

(e) Non-preferential - Self Certification: Manufacturer exporters who are also Status Holders shall be eligible to self-certify their goods as originating from India, if goods qualify the criteria as laid down in(a) above, as per Annexure –III to Appendix 2E.

CERTIFICATE OF ORIGIN INDIA