3. A covering letter (on Original Letterhead) addressed to the Director-General, for the issue of a Certificate of Origin / Certification of copies of Invoices / Packing List etc.
4. Along with the Invoice, Packing List, Letter of Credit or Purchase Order or E-mail order (whichever is relevant) all the documents must be stamped and signed by the Exporter Applicant.
In case of goods that have been imported prior to being exported to another country, relevant clearance certificates from Customs Department must be submitted to show that the goods entered the country legally after payment of all necessary taxes and duties.
Who Issues a Certificate of Origin
A Certificate of Origin is issued by both the Indian Chamber of Commerce as well as Trade Promotion Council of India. This certificate issued by these two bodies is essential for exporters in India to prove that the commodities being exported are of Indian origin. It also proves that the commodity exported is wholly obtained, manufactured or produced in India. Millions of Certificates of Origins are issued around the world to facilitate trade and commerce worldwide.
A Certificate of Origin must be signed by the exporter with a permanent indemnity bond on a non-judicial stamp paper of Rs 10, duly notarised (format for Indemnity Bond is available with the Certificate of Origin Dept). The certificate must also be signed and stamped by the Chamber of Commerce or any other authority with such qualification. It is the most commonly used document to prove the origin of goods.
Importance of Certificate of Origin
The main requirement for a Certificate of Origin is for clearing customs. If the goods, exported/imported do not come with a Certificate of Origin, the Customs officer tasked with checking the goods will not allow the goods to leave the warehouse. The Certificate of Origin is used by the Customs officer to determine the duties that have to be paid and to check whether the goods being exported/imported are illegal.
Types of Certificate of Origin
There are two kinds of Certificate of Origin that Chambers of Commerce may issue:
Non-preferential Certificate of Origin: This type of Certificate of Origin states that the goods being exported/imported are not given any preferential tariff treatment and the due duties must be levied upon the goods that are being moved.
Preferential Certificate of Origin: This type of Certificate of Origin is given towards goods that are subject to preferential tariff treatment in the payment of duties. These duties may be a reduction of the normal tariff, or it also may be a complete exemption of the tariffs. Such a situation arises when two or more nations reach a trade agreement entailing such exemptions when goods are exported or imported between these nations.
These are the following schemes under which India receives tariff preferences:
Generalised System of Preference (GSP): This system is implemented to support developing countries by giving them preference in trade tariffs from industrialised and developed countries. It is a non-contractual instrument that is unilateral and is based on a non-reciprocity extension of tariff concessions.
Global System of Trade Preference (GSTP): This system extends tariff concessions between developing countries who are parties to an agreement. Export Inspection Council (EIC) has the sole authority to issue Certificate of Origin under GSTP.
SAARC Preferential Trading Agreement (SAPTA): Tariff concession extends only to countries in SAARC.
Asia-Pacific Trade Agreement (APTA): Presently, India, China, South Korea, Sri Lanka and Bangladesh exchange tariff concession under APTA. APTA offers liberalisation of tariff and non-tariff barriers in order to expand trade in goods in the Economic and Social Commission for Asia and Pacific (ESCAP) region.
India-Sri Lanka Free Trade Agreement (ISLFTA): This agreement is a free trade agreement between India and Sri Lanka. Under this agreement, EIC has the sole authority to issue Certificate of Origin.
Indo-Thailand Free Trade Agreement: This agreement between India and Thailand is to implement the Early Harvest Scheme where products under this protocol are given tariff preference. Early Harvest Scheme under India-Thailand Free Trade Agreement offers tariff preferences for imports on items, which satisfy Rules of Origin criteria notified by the Department of Revenue, Ministry of Finance vide notification no. 101/2004-Customs dated 31.08.2004. Export Inspection Council is the sole agency to issue Certificate of Origin under this protocol.
India-Malaysia Comprehensive Economic Cooperation Agreement (IMCECA): This is an agreement between India and Malaysia and the EIC has the sole authority to issue Certificate of Origin.
India-Korea Comprehensive Economic Partnership Agreement (CEPA): India and South Korea (Republic of Korea) signed the Comprehensive Economic Partnership Agreement (CEPA) to expand the business and commercial opportunities between these two countries. EIC has the sole authority to issue Certificate of Origin under this agreement.
India-Japan Comprehensive Economic Partnership Agreement (IJCEPA): This agreement is between India and Japan to improve and protect investments made between the two countries. Under this agreement, the EIC has the sole authority to issue Certificate of Origin.
ASEAN-India Free Trade Agreement: This agreement is between India and Japan to improve and protect investments made between the two countries. Under this agreement, the EIC has the sole authority to issue Certificate of Origin.
Process of Online issuance of COO
Visit DFFT official website and go to Services Section and “Certificate of Origin”, you will be re-directed to a new page where you have to register on the portal using your IEC. After filling the same, click on the “Save and Next” tab a file will get downloaded “dsc.jnlp”. Before clicking on the above download file dsc.jnlp, make sure to have the following things on your system:
1. You must have a digital signature which should consist of your Import Export Code (DGFT DSC);
2. Java version 8 and above;
3. Windows 10 and above versions
4. Insert the token and open the application i.e. E-pass/ Proxkey etc.
Go to Java- Security-Exception site list-edit site list – Add: https://coo.dgft.gov.in, click OK, and close the application.
Once you will click on the dsc.jnlp file, it will automatically open the digital signature certificate connected in your system and you can continue the registration process and then you can complete the process of application for issuance of COC.