A certificate of origin (CO) is a document that states the country where the goods were produced. There are two broad types: non-preferential, which simply proves origin, and preferential, which lets you claim a lower duty under a trade agreement or scheme.
Which one you need depends on your country, the product and whether a duty preference applies. If no preference applies, a non-preferential CO is usually enough, and some buyers do not need one at all.
The two types
A non-preferential CO confirms that the goods are of Indian origin. It is often asked for by banks under a letter of credit, by customs in some Gulf, African and Asian markets, and by buyers who need origin for labelling or quotas.
In India these are commonly issued by authorised chambers of commerce and trade bodies. DGFT also runs an online platform for certificates of origin. The supplier applies with the invoice, packing list and shipping details.
A preferential CO, or an origin statement made under the rules of a scheme, is what lets you pay a reduced or zero duty. Each agreement has its own form, rules of origin and issuing route. The goods must meet those rules, not just be shipped from India.
For most raw spices and seeds, origin is simple because the crop is grown in India. It gets harder for blends, or for goods processed in India from imported raw material, such as some nuts.
How to choose the right one
- Ask your customs broker which duty rate applies to your HS code and origin. See how to find the right HS code.
- Ask whether that rate needs proof of preferential origin, and in what form.
- Check if your bank or LC terms ask for a CO, and which issuer they name.
- Put the exact type, issuer and wording in your contract and payment terms.
- Confirm the CO details match the invoice, packing list and bill of lading.
Common mistakes
Duty schemes are covered in more detail in what preferential duty schemes apply to Indian agri products.
- Ordering a preferential certificate for a scheme that does not cover India or your product.
- Product descriptions or weights that differ from the invoice, which customs or banks may reject.
- Certificates issued late, after the goods have been cleared at full duty.
- Assuming the supplier knows your country's rules. Most know Indian procedure, not your customs law.
Who should apply
The exporter normally applies, because the certificate is issued in their name and relies on their production records. Under some schemes, the exporter must also be registered before it can make origin statements. Ask for a draft before the vessel sails, so errors can be corrected while the goods are still in India and the bank documents are not yet presented.
Where we come in
We agree the certificate type and wording with you and your broker before shipment, then check the draft against the invoice and packing list. That avoids a bank discrepancy or a duty claim lost on a typing error. Ask for a free sourcing review.