6 Questions to Understand Certificates of Origin Better

In addition to various export documents, a certificate or origin (COO) is necessary for goods entitled for preferential tariffs under Free Trade Agreements (FTAs). At this time, Australia has many FTAs in force with different countries, while many others are under negotiations. You may refer to these agreements to know the preferential tariffs for different goods. Before that, here’s a useful guide answering the top question to help you prepare a certificate of origin.

What Are Different Types of COO?

There are different types of certificates of origin, based on the FTAs between Australia and other countries. Some of them include:

• Certificates of origin AANZFTA (Australia-ASEAN countries)
• Certificates of origin ChAFTA (China-Australia)
• Certificates of origin JAEPA (Japan-Australia)
• Certificates of origin KAFTA (Korea-Australia)
• Certificates of origin TAFTA (Thailand-Australia)

Which Categories of Goods Are Entitled for Preferential Tariff Rates?

The goods wholly obtained in Australia (for example, the agricultural goods) require a certificate of origin to enjoy preferential tariffs. Besides, the FTAs entitle goods wholly produced in Australia using the wholly obtained goods (for example, the fruit products like jams) for reduced tariffs. In addition, the preferential tariffs also apply to the goods that don’t originate in Australia but undergo significant transformation in the country.

What If the Present Tariff Is Lower than FTA-prescribed Tariff?

Differing from the preferential tariffs that an FTA prescribes, a specific good may have a tariff lower than that at present. In that case, you don’t need to prepare a certificate or origin as it won’t be required. For this, you must carefully compare the FTA preferential rates and the current tariffs for different goods. Also, both these tariffs are subject to change. As a result, you must refer to the rates for every new consignment to go with the best available rate.

Does a Certificate of Origin Stay Valid for Transhipped Goods?

You may tranship your goods to a country via some intermediate destination. In this case, the certificate of origin may remain valid provided you meet some important conditions. Firstly, the goods must not go through any operation at the midway destination. Secondly, the goods must not stay at this destination for more than 12 months. Finally, the customs must control the goods during the halt. However, you may also require some additional documentation for such goods.

Is Record-keeping Important?

The exporters from Australia must maintain proofs regarding the origin of the goods they export for up to 5 years. The records are useful at the time of audits. Hence, make sure you maintain the copies of the certificate of origin and other documents.

Who Is Authorised to Stamp a COO in Australia?

The Australian Chamber of Commerce and Industry and its authorized state and territory chambers stamp the certificates of origin. Additionally, the bodies like the Australian Industry Group and the Australian Grape and Wine Authority have the power to verify the certificates for different goods.

You may use ImpexDocs solutions to submit the certificate of origin for stamping electronically. It saves a lot of time and is a convenient option than the previous paper-based process.

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