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Sourcing glossary

Certificate of origin

Also known as: CO, C/O, Form of origin

A document certifying the country in which goods were produced, used by customs to apply the correct duty rate, trade measures and, for preferential certificates, reduced rates under a free trade agreement.

There are two kinds. A non-preferential certificate simply confirms origin, which some buyers, banks or countries require. A preferential certificate, issued under a free trade agreement between China and the importing country, can cut or remove import duty, but only if the goods meet that agreement's rules of origin and the certificate is in the required form. In China, certificates are issued by the customs authority or the China Council for the Promotion of International Trade (CCPIT).

Ask the supplier before shipment whether your destination has a trade agreement with China and whether the product qualifies. Origin follows where the goods were substantially made, not where they were shipped from, so relabelling or routing through a third country does not change it. See how to calculate landed cost.

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Part of Tariffs & Compliance.

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