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: 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– “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 RESULTS12 MILLION COs

Switzerland 130,000Belgium 229,000France 455,000Dubai 600,000Turkey 700,000Italy 750,000China 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

– 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

– 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)

www.worldchambersfederation.orgwww.worldchambersfederation.org

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 Rodriguezlrz@iccwbo.org

+33 1 49 53 28 42ICC 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

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