WELCOME TO
WCF Webinar Series – Certificates of Origin (COs)
Steve Baker, Manager of International Trade Certification for
the British Chambers of Commerce, will be our featured speaker
Luz Rodriguez, Project Manager at ICC World Chambers Federation,
will be our host
Enjoy the session!
www.worldchambersfederation.org
INTRODUCTION TO COs
TODAY’S SESSION:
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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
 COs trends – PCOs and ECOs
INTRODUCTION TO COs
WHAT IS A CO?
A Certificate of Origin (CO) is a
document attesting that goods in a
particular export shipment are wholly
obtained or produced or manufactured
or processed in a particular country
Example:
UK history and structure
European Community - CO
INTRODUCTION TO COs
EXAMPLES OF CO FORMS
International Template for COs
Kyoto Convention - 1999
CCPIT/CCOIC - China
Dubai Chamber of Commerce
and Industry - UAE
INTRODUCTION TO COs
HISTORY
 1973 - UK joined European Community
- European regulations
- European Certificate of Origin
 1991 - The Memorandum of Understanding (MOU)
between BERR (DTI) and British Chamber of Commerce
(BCC) was signed
INTRODUCTION TO COs
HISTORY
 The MOU set out the relationship between BERR (DTI) &
BCC, it brought about 2 main changes:
– Issuing bodies are authorized by BERR (DTI)
– The requirement for certification staff to be trained
 Training funded by issuers quarterly fee
INTRODUCTION TO COs
STANDARDS OF AUTHORITY
 Training
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“Certificate of Competence”
Mandatory staff certification: 2 people +
Renewed every 3 years following mandatory refresher course
Authorized signatories
Contact ICC World Chambers Federation
 Inspection
– Regular programme of inspection to ensure adequate facilities
– Storage provisions for maintenance of records and files
– Security to safeguard all confidential trade documents
INTRODUCTION TO COs
STRUCTURE
 Department of Trade & Industry (now known as BERR)
 British Chambers of Commerce (BCC)
 Certification Practitioners Group (CPG)
 Issuing bodies
INTRODUCTION TO COs
UPON APPLICATION
 Obtain from applicant valid undertaking agreeing to:
– Abide by the rules
– Indemnify the issuing body against future claims for
errors in certificates
 List of authorized signatories from applicant, renewable
annually
 Formal undertakings must be renewed every 2 years,
unless they are combined with a signature list as one form,
when they must be renewed annually
INTRODUCTION TO COs
THE CERTIFICATE OF ORIGIN
 Why needed
– Official reasons
• Importing country regulations
– Commercial reasons
• Customer request
– Financial reasons
• Letter of credit
INTRODUCTION TO COs
ABOUT ORIGIN
 Exporters must declare the
origin of goods and complete
the reverse of the application
(pink) copy of the CO
 It is important that
documentation staff
understand the rules of origin
that apply to certificates
INTRODUCTION TO COs
ABOUT ORIGIN
European community regulations have 2 different sets of
rules for determining origin:
 Non preferential rules of origin for COs
 Preferential origin rules for EUR1/ATR/suppliers
declarations
INTRODUCTION TO COs
2009 WCF WORLD COs SURVEY RESULTS
12 MILLION COs
Switzerland
Belgium
France
Dubai
Turkey
Italy
China
130,000
229,000
455,000
600,000
700,000
750,000
3 million
INTRODUCTION TO COs
ABOUT ORIGIN
Non Preferential Origin
– European community regulations 2913/92 and
2454/93 apply
– Both sets of rules are in PROCEDURES MANUAL
INTRODUCTION TO COs
ABOUT ORIGIN
Preferential Origin
– Movement of goods between EC and countries with a
preferential trade agreement
– EUR1 or ATR certificates required
– Chambers now authenticate these documents
– HM revenue and customs are responsible for
verification of origin status
– Rules and procedures contained in customs notices
812, 827, 828 & 832
INTRODUCTION TO COs
HOW TO ESTABLISH ORIGIN
 Identify goods
– Goods must be clearly identified
– Normal trade descriptions should be used
– Brand names should NOT be used on their own
INTRODUCTION TO COs
HOW TO ESTABLISH ORIGIN
 Applicant makes origin claim on
reverse of application (pink) copy
 Each of the 3 possible origin
claims has specific criteria which
the goods must satisfy
INTRODUCTION TO COs
HOW TO ESTABLISH ORIGIN
 Box 1 will be ticked where the
goods are wholly obtained or
produced in the UK
- Animal, vegetable or mineral
products (incl. fish)
- Products made exclusively from
any of these
- Scrap, waste or used products for
recycling
INTRODUCTION TO COs
HOW TO ESTABLISH ORIGIN
 Box 2 should be ticked where the
goods are of UK origin by virtue of
the processing that the goods
have been subjected to in the UK
i.e. because of economically
justified substantial process
INTRODUCTION TO COs
HOW TO ESTABLISH ORIGIN
 Box 3 is completed where the
goods are not of UK origin
 Supporting proof of origin is
required
– Check the evidence provided
– Does it clearly support the origin
claim
– If in doubt request further proof
INTRODUCTION TO COs
REVISION OF CERTIFICATION PROCESS
 4 primary checking operations
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Formal undertaking
Signature
Face checking
Accuracy of origin claim
INTRODUCTION TO COs
THE CERTIFICATION PROCESS
 Formal undertaking
– Is a formal undertaking from the applicant held on file?
– Must be renewed every 2 years (annually if combined with
signature list)
– Company agrees to abide by Standard Rules and
indemnifies Chamber against inaccuracy of documents
– A template of a formal undertaking and letters of
indemnity for members and non-members are available in
the ICC WCF International CO Guidelines
INTRODUCTION TO COs
THE CERTIFICATION PROCESS
 Signatures
– A list of authorized signatories must be held on file
– Specimen signatures must be provided (renewed
annually)
INTRODUCTION TO COs
THE CERTIFICATION PROCESS
 Face Checking
– Is product described in sufficient detail
– Are all necessary fields completed
– Are all documents consistent
– Metric system must be used
INTRODUCTION TO COs
THE CERTIFICATION PROCESS
 Accuracy of origin claim
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Origin claim must be checked
Supporting documents
Insufficient evidence - further proof required
Possible company visit?
Maybe a phone call sufficient
INTRODUCTION TO COs
THE CERTIFICATION PROCESS
Remember the 4 primary checking operations:
 Formal undertaking
 Signature
 Face checking
 Accuracy of origin claim
INTRODUCTION TO COs
THE CERTIFICATION PROCESS
 Double Checking
– Once the entire checking operation is complete the
documents should be passed to another staff
member to be double checked
INTRODUCTION TO COs
THE CERTIFICATION PROCESS
 Stamping and signing
– When satisfied certify the certificate
– The official stamp applied to box 8
– Authorized signatory signs in box 8
(CEOs must attend Certification
Assessment course)
– Authorized signatory name stamp to
box 8
This procedure will vary for
EXPRESS CERTIFICATES
INTRODUCTION TO COs
CERTIFICATION OF INVOICES AND DOCS
 Issuing bodies authenticate the signature on invoices,
packing lists, declarations etc.
 Face check for obvious errors or statements that are
clearly false
INTRODUCTION TO COs
CONFIDENTIALITY
 Office environment
 Duty of confidentiality to customer
 Quiet area
 Visits by external organizations - Fraud Squad, MI5, HM
Revenue & Customs (HMRC) - see next slide
INTRODUCTION TO COs
FRAUD
 Inform your chief executive immediately
 Ensure there is an appropriate statutory order before
handing over documents for examination
 For further advice contact WCF
INTRODUCTION TO COs
CUSTOMER CARE
 Quality Service
– Follow CPG guidelines
– Checks are necessary to avoid delays for goods and
payments
– If documents are incorrect advise in friendly but
firm manner and offer assistance where needed
INTRODUCTION TO COs
CUSTOMER CARE
 Consistency:
– Companies need to feel confident in the consistency
of service offered by the chamber network
– Companies should be made aware of opening times
for documentation
– Pricing
– Availability of e-Cert for EC and Arab docs
INTRODUCTION TO COs
CUSTOMER CARE
 Confidentiality
– Segregation of personal callers
– Stamping of documents away from the public area
INTRODUCTION TO COs
RECENT CO TRENDS
 Preferential Certificates of Origin (PCO)
 Electronic Certificates of Origin (ECO)
INTRODUCTION TO COs
WCF SUPPORT TO CHAMBERS
 ICC WCF CO Task Force
 ICC WCF International CO Guidelines
(www.iccbooks.com)
Thank you for participating in our WCF Webinar on COs!
CONTACT:
Steve Baker
s.baker@britishchambers.org.uk
+44 24 7647 2538
British Chambers of Commerce
Luz Rodriguez
lrz@iccwbo.org
+33 1 49 53 28 42
ICC World Chambers Federation
38 Cours Albert 1er
75008 Paris, France
LISTEN:
To a recording of this webinar at:
www.iccwbo.org/wcf
on the COs page of our webinar series
CongressLink
www.worldchambersfederation.org