Question:

Could you please tell me how a certificate of origin works? I mean, what part or percentage of the product has to be made in a country for this fact to appear on the certificate? Thanks.

Answer:

A certificate of origin is issued by the exporter's country (chamber of commerce or government entity) to declare that goods sold to a foreign buyer have been produced in the exporter's country and not in another country. Some countries do not require that the goods' content to be100% from the certificate of origin issuing country. In many countries certificates of origin are issued based on "content rule." For example, country "X's" content rule could be 60% domestic content and the rest be foreign content to qualify for the country "X" country of origin certification. In addition to identifying the country of origin of the product, the document also serves to claim full or partial exemption from duties paid when clearing goods through customs. Some countries require a separate certificate that goes along with the certificate of origin. This additional certificate is countersigned by a chamber of commerce and possibly even a visa is issued by the resident consul of the importing country at the exporter's country.

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