FAQs
Frequently Asked Questions
What is the Certificate of Origin?
A Certificate of Origin is a Trade Document used by exporters to confirm the origin of the exported goods in accordance with the non-preferential rules of origin. It is usually issued for goods that are exported permanently
What's the purpose of the Certificate of Origin?
A Certificate of origin may be required for many different reasons, the main ones being for customs clearance purposes: so that importers can release their goods from customs authorities, or for commercial purposes, such as when a Letter of Credit states a Certificate of Origin needs to be issued to fulfil the issuing bank’s documentary requirements.
Do I need a Certificate of Origin to import?
This depends on the country you are importing the goods from and their Commodity Code; it will be the seller’s responsibility to provide you with the Certificate if you need it. For clearer information or confirmation if you will need one, we advise you to check the gov.pk tariff tools.
Do I need a Certificate of Origin to export?
This depends on the country you are exporting your goods and their commodity code. We would advise you to confirm with your foreign counterpart (buyer) whether if they will need a Certificate of Origin to import the goods or not.
What does "origin of the goods" means?
In International Trade, origin of the goods means the country where the goods were manufactured or produced, this doesn’t always correlate to the country where the goods are being shipped from, as you can have goods manufactured in one country but shipped from a different one.
What is the criteria used to determine the origin of goods?
Rules of Origin are a complex subject that is defined by the Free Trade Agreements (or lack thereof) between nations. The most common criteria is to determine the origin of the goods are:
- The country where the goods where manufactured or produced.
- The value added to a finished product where more than one country is involved in the manufacturing process (also known as substantial transformation)
- A change in the goods’ commodity codes when a particular procedure takes place as part of the manufacturing process where more than one country is involved.
- The value of the individual pieces that conform the finished product.
Please note these are just some of the criterias and declaring the incorrect origin of the goods can have severe consequences, from the goods being refused entry to the importing country to large fines imposed over the goods. For traders looking to determine/confirm the correct origin of their goods we strongly advise seeking professional assistance on this matter.
What are the rules of origin so important in International Trade?
Rules of Origin are important because they determine the origin of the goods, which allows traders to confirm if the goods are subject to preferential duty rates in the importing country. They are also important for trade statistics and government procurement, as well as to implement safeguarding measures to protect the importing country (i.e. antidumping) and for the application of labelling and marking requirements.
How long is the Certificate of Origin valid for?
Certificates of Origin are only valid for 12 months from their issuing date.
What is the difference between issued retrospectively and retroactively?
Issued retrospectively applies when the Certificate is issued after the goods have departed from the exporting country. Issued retroactively on the other hand applies for Certificates of origin issued before the goods are exported and before the invoice date, this usually applies to goods that due to their nature require a short transit/shipping time (i.e. live animals, seafood).
Who issues Certificates of Origin?
Chambers of Commerce are the issuing bodies for Certificates of Origin.
What are the documents required to apply for a Certificate of Origin?
Applicants will need to provide their Commercial Invoice, Packing List, Bill of Lading/Airway bill and the evidence of origin of the exported goods.
How much does a Certificate of Origin cost?
Certificates of Origin cost can be inquired at the chamber office.
Can I issue my own Certificate of Origin?
No. Certificates of Origin are official customs documents and can only be issued and attested by authorized issuing bodies (Chambers of Commerce).