Certificate of origin facts for kids
A Certificate of Origin (often called C/O or CO) is a special document used when countries trade goods with each other. Think of it like a passport for products! This document tells everyone where a product was made. Customs officials in the country receiving the goods need it to make sure everything is allowed to enter. Usually, a group called the Chamber of Commerce in the country that sent the goods issues this certificate.
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Why Do We Need a Certificate of Origin?
A Certificate of Origin is important for several reasons:
- To get special benefits from free trade agreements between countries.
- To help products pass through customs easily when they arrive in a new country.
- To prove that the products are real and come from the country they say they do.
Different Kinds of Certificates
There are two main types of Certificates of Origin:
Preferential Certificate of Origin
This type of certificate is used when countries have special deals called free trade agreements. These agreements often mean that certain products can be bought and sold without extra taxes or fees. The "preferential" part means the goods get a special advantage. This certificate shows where the product came from and names the specific trade agreement it falls under.
Non-Preferential Certificate of Origin
This certificate is used for general trade, not tied to a specific free trade agreement. It's needed to show customs officials that the products are not coming from a country that might be banned from trading. This certificate will only show the country where the product was made, but it won't mention any trade agreement.